Marksans Pharma LimitedInvestor Presentation

February 2008

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Disclaimer 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 undertakes no 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

Section 1 Highlights

Section 2 Industry Overview

Section 3 Company Overview

Section 4 Strategy

Section 5 Financial Highlights

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Highlights

Mumbai based vertically integrated player with strong presence across the entire value chain - APIs to formulations to biopharmaceuticals

Incorporated in 2001 as a wholly owned subsidiary of Glenmark Pharmaceuticals Ltd. and later spun-off into a separate entity in March 2003

Straddles across key therapy areas and markets its products in both evolving and developed markets

Actively engaged in R&D and offers CRAMS to global pharmaceutical companies

Operates world class manufacturing facilities for API and Formulations, built per US FDA guidelines and approved by UK MHRA, Australia TGA and Brazilian ANVISA health authorities

Reported sales of USD 63.4 million and net profit of USD 1.75 million in FY2007

INDUSTRY OVERVIEW

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The Global Pharmaceutical MarketWorldwide pharmaceutical market expected to grow at 5-6% to USD 665-685 billion in 2007

Moderate growth in the US and EU markets

Asia and Latin America are growth drivers

Expiry of patent protection driving Generics market – In 2008, products with sale value of more than USD 20 billion are likely to lose patent protection

Global Pharmaceutical Sales by Region 2006

Market2006 Sales

(USD billion)% Growth

North America 289.90 8.00%

Europe 181.80 4.80%

Japan 56.70 -0.70%

Asia, Africa & Australia 52.00 9.80%

Latin America 27.50 12.90%

Total IMS Audited 607.90 6.50%

Source: IMS Health

Audited World Therapy ClassSales (USD

billion)Y-o-Y

Growth (%)

Lipid Regulators 32.5 7.5Oncologics 34.6 20.5Respiratory Agents 24.6 10.4Acid Pump Inhibitors 24.1 3.9Antidiabetics 21.2 13.1Antidepressants 20.6 3.3Antipsychotics 18.2 10.9Angiotensin-II Antagonists 16.5 15.2Erythropoietin Products 13.9 11.8Anti-epileptics 13.1 10.8Total Leading Therapy Classes 184.3 10.7

Leading Therapy Classes by Global Sales, 2006

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Indian Pharmaceutical Market

Source: www.indiahealth.com

Bulk-drug22%

Formulations78%

India Pharmaceuticals Market 2007

10.4 11.3 12.3 12.414.4

15.6

0

5

10

15

20

2007 2008 2009 2010 2011 2012

Projected Indian Pharmaceutical Market, 2007-2012 (USD Billion)

Source: Espicom

India is one of the fastest growing large pharmaceuticals market

India is also the world’s fourth largest producers of pharmaceuticals by volumes

Competitive Advantage:

Upfront capital cost lower by 25-30%

Clinical trials cost 50% less

Drug production cost lower by 40-50%

Contract Research & Contract Manufacturing (CRAMS)

India has emerged as a key destination for CRAMS

Global manufacturing outsourcing opportunity is estimated at USD 20 billion

Formulations constitute about 78% of total sales. 32% of formulation sales are exports

COMPANY OVERVIEW

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Marksans Pharma Limited

Marksans Pharma Limited is a niche Formulations, Bulk drugs and Biopharmaceutical player with presence across the entire value chain

Incorporated in 2001 as a wholly owned subsidiary of Glenmark Pharmaceuticals Ltd. and later spun-off into a separate entity in March 2003

The Company straddles across key therapy areas and actively engages in R&D and offers CRAMS to global pharmaceutical companies

The Company is listed on The Bombay Stock Exchange and the National Stock Exchange of India Limited with a market capitalisation of Rs 9.24 billion (USD 234 million) as of 8 February 2008

The Company has an employee strength of 1296 out of which more than 100 are engaged in R&D

Reported sales of Rs 2,399 million (USD 60.7 million) and net profit of Rs 69.3 million (USD 1.75 million) in FY2007

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Business Overview

DOMESTIC MARKET

Niche FocusLarge Product portfolio

NDDS, NCEIn-licensing

API Manufacturing

BIOLOGICS Marketing

FORMULATIONSPharmaceuticals + Biologics

EXPORT MARKET

Supply tie-ups Joint marketing

CRAMS Out-licensing

ANDA Filings And Dossier Development

DMF/COS Filings and Dossier Development

Clinical Trials

Custom Chemical Synthesis

Formulation Development & NDDS

Drug Discovery & Development Services

A Complete R&D Player

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Business Segments

1036

1619

13631355

0

400

800

1200

1600

2000

FY2006 FY2007

Bulk Drugs Formulation

28.2

203182

216

0

50

100

150

200

250

300

FY2006 FY2007

Bulk Drugs Formulation

FORMULATION

Significant presence in major therapeutic areas in the domestic market with over 250 products

Strong marketing capabilities with 450 representatives across India

Foreign markets: US, EU, UK, Australia, and other emerging markets. Plans in place to tap huge Russian and CIS markets

Collaborations: MPL’s products are available through collaborations with big MNC companies

ANDA filings: List of proprietary products identified which are to be developed post patent expiry - Is filing 10 ANDAs with US FDA by June 2008

Combination of organic and inorganic growth

ACTIVE PHARMACEUTICAL INGREDIENT Second largest producers of Ciprofloxacin and Ranitidine in IndiaProvides contract manufacturing services to world’s leading generic pharmaceutical companies

Key Focus Area: CVS, Ant diabetic, CNS, Pain management& Gastro Intestinal

Expanding production in CNS, CVS, anti-diabetic and pain management therapeutic segments

Capacity expansion already underway to meet domestic demand

Revenues (Rs millions)

Revenues (Rs millions)

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Business SegmentsRESEARCH AND DEVELOPMENT

State of the art R&D laboratory at Goa (approved by DSIR) and New Delhi for innovation in the area of new molecule and formulation development and drug delivery

New research laboratory set up at Kurkumbh to provide chemical synthesis and development services

The company is also working towards developing API's which are likely to go off patent in the next few years as their market size is estimated at USD 20 billion

Joint product development pacts in place with reputed international and local institutions for biopharmaceuticals

GENERIC DRUG DEVELOPMENT PIPELINE

Filing 10 ANDA’s with USFDA by June 2008, having aggregate market size of 17 billion in US, into CVS, CNS, Pain management & Gastro Intestinal Segments

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Manufacturing CapabilitiesFORMULATION

Marksans state of the art manufacturing facilities in Goa are of international standards adhering to stringent quality norms and are USFDA compliant. Its world class manufacturing capabilities cater to APIs as well as formulations.

Adhering to USFDA guidelines with approvals from UK MHRA, Australian TGA and Brazilian ANVISA health authorities

One of the biggest manufacturing facility for soft gelatin capsules and tablets in Asia (Capacity of 2.50 billion tablets/line/annum for tablets, 4.8 billion capsules / line / annum) respectively

ACTIVE PHARMACEUTICAL INGREDIENT Marksans has two large multi-product API manufacturing facilities located at Kurkumbh, Maharashtra which are re-benchmarked to CGMP standards

USFDA approval expected in next 9-12 months

MPL has increased the annual capacity of its flagship product Ciprofloxacin from 600 MT to 1000 MT and for Ranitidine from 360 MT to 600 MT

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Recent AcquisitionsHALE GROUP - UK

The Company has entered into a share purchase agreement with UK's Hale Group to acquire its entire share capital, along with its subsidiary company Bell Sons & Co (“Bell”)

Bell is a well-established manufacturer of a broad range of OTC pharmaceuticals having full approval of the UK MHRA and currently holds 38 product licenses. Licensed products contribute over 45% of Bell’s total turnover

The company clocked a turnover of £ 8.03 million and £ 8.94 million respectively for FY’05 and FY’06 (year ending December). The EBITDA margins for the said period stand at 12% and 14% respectively

Rationale: Bell is an established player with strong goodwill

Access to the regulated UK & Europe market

Synergies and cost saving in manufacturing and R&D

NOVA PHARMACEUTICALS - AUSTRALIA MPL acquires Nova Pharmaceuticals (NP), a company that specializes in R&D and marketing of generics

NP has a basket 14 products, with additional 25 products filed for TGA approvals

NP has presence in the top pharmacies and major chain stores for the supply of generics and OTC

Rationale: Gain foothold in a key pharmaceutical market

New product introduction and cost saving by shifting production to India

STRATEGY

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Inn

ov

ati

on

& V

alu

e C

ha

in T

rav

ers

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Enterprise Maturation

Current State

Niche Player

Geographic expansion – Semi and Regulated Markets

Product expansion – NCEs, biologics, controlled /high potency substances

Therapeutic area expansion – critical care, respiratory,CNS, anti-infectives, immunology, life style, neutraceuticals

Future State

Integrated Player

Ve

rtic

al

Inte

gra

tio

n

Business expansion – CRAMS

Product Innovation – reformulation,Controlled release

Global strategy – global alliances, innovator partnershipscollaborative R&D, licensing deals, M&A

Multi-product, multi-specialty, multi-geography, fully integrated enterprise

VisionStrategy aimed at differentiation, high margin niche areas, life cycle extension and product innovation

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Europe, US & Emerging Markets Become preferred manufacturing partner for large MNC pharma companies Establish a strong presence in the US generic pharmaceutical market through acquisition of a

target company to exploit MPL’s low cost API, drug formulation and R&D capabilities Focus on building IP assets specially in Niche dosage forms Out-License IP to drive growth / scalability Build and launch portfolios of generic products in niche segments, technology driven

products. In parallel, seek out newer markets with potential Build significant OTC presence in regulated markets Integrating & leveraging acquired company strengths to fuel internal growth

India Become a top 10 fully integrated pharmaceutical company with a diverse portfolio of ethical,

branded, generic and OTC products Continue building presence in speciality markets such as oncology and CNS Continue evolution as an innovative developer of patented, NDDS, and in-licensed products

(RISUG, GCSF, EGF) and post-patent products

Geographical Strategic Goals

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Rapid filing of ANDAs / MAs, DMFs/COSs into US, Europe & Emerging Markets

Expand CRAMS services in the Regulated Markets

Acquisitions of growing, profitable pharmaceutical companies and/or products.

Commercialize strong pipeline of over 10 new API products

Leverage economies of scale and integrating API and formulation manufacturing

Pursue additional product in-licensing opportunities for domestic markets

Enter into out licensing arrangements with big pharma company in US, Europe to manufacture & market post patent & off patent drugs

Key Growth Drivers

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CRAMS

R&D – NCEPIPELINE

THRUST ONEXPORTS

DOMESTIC FORMULATIONS

BIOPHARMACEUTICALS

Strategy

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Thrust on Exports

VISION: To become a leading player for APIs and formulations supply to global companies

COMPETITIVE EDGE: Vertical integration from R&D to API to formulations

NORTH AMERICA: Aggressive roadmap to develop sales and distribution network

Remain focused on high value of generics

Organic and inorganic buildup of portfolio

EUROPE: Tie-ups in place with top 7-8 generic formulations companies for CRAMS

Focus on selected market – UK, Germany, Central and East EU

UK Acquisition: £8-10m sales with strong product pipeline and brand equity

AUSTRALIA: Acquired a marketing company with basket of 14 products, with additional 25 products filed for TGA approvals

EMERGING MARKETS: Expanding to countries and across products

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Domestic Formulations

CURRENT STATUS AND STRATEGY

Mark Remedies caters to the GI disorders and Respiratory infections segment. This is a mass segment category with promises of large volumes

Enhance presence in Oncology and creating a base in lifestyle therapeutic segments

Focus on Biotechnology drugs, antineoplastics and immunomodulators

In-licensing to be one of the major growth drivers

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Biopharmaceuticals

CURRENT STATUS

Number of in-licensing / joint R&D agreements in place with international agencies and local research institutes for product development and / or marketing

Some of the products approved / under development

Interferon Alpha 2b: world market ~ USD 1 billion

Granulocyte Colony Stimulating Factor (GCSF): World market ~ USD 2 billion

Epidermal Growth Factor (EGF) - NDDS

Interlucin 2

STRATEGY

Aggressively scouting for more in licensing opportunities with the innovator companies

Increase the marketing infrastructure on PAN India basis to market the products

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Research & Development

~ 45 products already developed. > 40 products under development

Building IP assets and registering them internationally

Focus on end to end solutions, to develop core API’s for ANDA products in-house.

Concentrating on development of Niche Liquid gel products

Leveraging expiry of patents: developing products for growth areas such as cardiovascular and anti diabetics

Tie ups in place with big MNC & Generic companies for first to launch status on many products following patent expiration

Joint product development pacts in place with reputed international and local institutions for biopharmaceuticals

MPL is already working on two NCEs in collaboration with Original patent holders, along with Indian Council of Medical Research, Govt. of India

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CRAMS

CURRENT STATUS

The Company has alliances with the top 7-8 MNC generic companies for contract manufacturing of ~ 30 generic products for the European markets

Licensing agreements in place with numerous companies for development and supply of products for 7-10 years

STRATEGY

The company plans to enhance its product portfolio with the addition of 12-13 products p.a.

Offering CRAMS services for existing and emerging markets is envisaged as one of the major driver and revenue earner for the company

FINANCIAL HIGHLIGHTS

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Financial Highlights

Particulars FY2005 FY2006 FY2007 9M FY2008

USD Millions (Audited) (Audited) (Audited) (Unaudited)

Total Income 62.78 76.49 63.39 42.01

Total Expenditure 51.78 63.82 56.21 34.28

EBITDA 11.00 12.66 7.18 7.73

Depreciation 1.76 2.04 1.85 1.60

Interest 2.94 2.68 2.91 2.55

PBT 6.29 7.95 2.42 3.58

Tax 1.13 2.15 0.67 0.35

PAT 5.17 5.79 1.75 3.24

Ratios

EBITDA Margins (%) 17.5% 16.6% 11.3% 18.4%

PAT Margin (%) 8.2% 7.6% 2.8% 7.7%

PROFIT AND LOSS

USDINR 39.5

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Financial Highlights

USD Millions FY2005 FY2006 FY2007

Shareholders' Funds 25.82 30.38 32.15

Secured Loans 21.01 20.51 25.57

Unsecured Loans 1.01 56.46 55.19

Total Debt 22.28 76.96 80.76

Total Liabilities 48.10 107.34 112.66

Net Block 25.82 31.65 35.19

Investments 0.00 0.00 0.00

Inventories 12.41 20.00 31.14

Sundry Debtors 14.43 12.91 13.42

Cash and Bank Balance 2.53 50.13 40.00

Loans and Advances 3.29 3.29 5.06

Total Current Assets 32.41 86.08 90.13

Current Liabilities 9.11 8.35 11.14

Provisions 0.51 1.27 0.25

Misc. Expenses 0.51 0.51 0.51

Net Deferred Tax -1.01 -1.52 -2.28

Total Assets 48.10 107.34 112.66

BALANCE SHEET

USDINR 39.5

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Background for FY2007 ResultsKEY REASONS

Stiff competition in APIs namely Ciprofloxacin and Ranitidine due to dumping from China

Price erosion ~ 35%

Reduced production in these APIs resulted in decrease in sales

STRATEGY ADOPTED

COS approval obtained for Ciprofloxacin, expected for Ranitidine & Metformin shortly to enable exports to Europe with 50% more margin

More high value products like Losartan, Metformin, Naproxen, etc with COS Filings

US FDA approval expected for all these products

Focus on high growth life style segment formulations mainly in domestic market, which are exhibiting strong growth rates

Integrating API operations with formulations

OUTCOME

Extremely bullish trend in domestic life style segment

Rise in prices of Ciprofloxacin, Ranitidine in China

MPL’s CRAMS business in Europe is growing

20 ANDA filings expected by Dec 08 and 30 by Dec 09, resulting in Business from USA in excess of US$ 100 million in FY 2011-12

Exclusive Out licensing arrangements with leading generic companies to give a boost to its Exports

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Shareholders fund USD 32.15 million

No. of issued Shares 35.94 million

Listed at BSE and NSE

Market Price Rs. 257 as on 8 February 2008

Market Capitalisation Rs. 9.24 million (US$ 234 million)

52 weeks high / Low High High: Rs 351.6 Low: Rs 44.2

Share Holding Pattern

(31 December 2007)

Category Holding

Promoters 47.41%

Banks/FIs/MFs 1.46%

Corporate Bodies 27.61%

Public 23.52%

Total 100.00%

Equity Capital Structure

USDINR 39.5

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Investment Highlights Fully integrated company with strong presence across entire value chain from

APIs to formulations to biopharmaceuticals and across key therapy areas and both the evolving and developed markets

Strong R&D focus strategically positions MPL in the new patent regime

Aggressive foray into new geographies and regulated markets through acquisitions (UK and Australia) to expand global footprint

Focus on high-growth therapeutic segments such as lifestyle, anti-diabetic, cardiovascular to advantage from strong demand from US and EU markets

Thrust on Biotechnology: Entered the lucrative segment with 8 products in the pipeline of which 3 are already approved by Drug Controller of India

World class manufacturing facilities and strong marketing and distribution network in India

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THANK YOU

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API

Two manufacturing facilities. Strategy to focus on end-to-end

solutions and to develop APIs for ANDA products in-house.

Rapidly filing COSs/DMFs into Europe and US markets.

Exporting its products to more than 30 countries.

Provides API contract manufacturing to many of the world’s leading generic pharmaceutical companies.

Key focus areas• CVS• Anti-diabetic• CNS• Pain Management• GI

Expanding its API business by shifting from predominantly domestic market to highly regulated markets of USA and Europe.

Formulations

World class manufacturing facilities: approvals - UK MHRA, Australian TGA. US FDA approval expected shortly.

Tie-up with big MNCs globally for offering CRAMS.

Product basket covering wide therapeutic areas.

Developing post-patent products mostly supported by in house API’s for global markets.

Out-licensing tie-ups with big pharma companies for long term manufacturing and marketing.

Setting up own front ends in major global markets – US, Europe, Australia, Russia and emerging markets.

Strong marketing presence in the domestic markets - wide range of over 250 products in the domestic markets.

Speciality segment focus in domestic market.

Specialised state of the art Soft gel manufacturing plant.

Expanding registration process across geographies

R&D

• DSIR approved research labs in Goa, Pune and New Delhi.

• Key focus on:• Building IP assets and their

global registration. • End to end solutions , to

develop core API’s for ANDA products in-house.

• Development of technology driven products for the global markets (Sustained release, extended release and Soft gel delivery systems).

• Development of Niche Liquid gel products (Differentiating plank as very few key players offer the same).

• Tie ups in place with big multinationals & Generic companies for first to launch status on many products following patent expiration.

MPL is already working on two NCE’s in collaboration with Original patent holders, along with ICMR, Govt. of India.

Company’s Operations

APPENDIX

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API operations were focused on Ciprofloxacin and Ranitidine which have suffered substantial price erosion

Weaknesses

Opportunities

Threats

Attrition.

Competition

R&D speed and managing launch

Changing regulatory requirements

World class fully integrated manufacturing facilities

Strong research & regulatory capabilities Continuous identification and launch of new

markets to expand geographies Market leader position in certain key bulk drugs

with strong presence in exports Highly competent, experienced and

professional management team Strong R&D skills so as to enable in-house

product development Strong marketing platform for pan-India

presence Strong development pipeline to cater to

company’s future growth

Strengths

Regulated markets, API and formulations

CRAMS for Global markets

Lifestyle therapeutic segment in domestic market

Increasing rural penetration in domestic markets

SWOT

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Inno

vatio

n &

Val

ue C

hain

Tra

vers

al

Industry Maturation (Value Creation)1970 2005 2010

Process Engineering

Drug Intermediaries

Bulk Actives (API)

Formulations

Product PatentProcess EngineeringSynthetic ChemistryCustom SynthesisContract Research

Pharma DevelopmentContract Manufacturing

Drug Discovery R&DPreclinical Research

Clinical Research

Innovator Products (NCE, Inorganics, NDDS)

ANDAs, DMFs/COSsPost Patent Filings

Global Exports (Regulated Markets)Regulatory Approvals / services(US FDA, UK MHRA, EDQM, TGA, ANVISA)Strategic Alliances & PartnershipsIn-house R&D (Goa, Pune, IITD)First-to-file (Para IV)Global AcquisitionsIn-/Out-Licensing deals

Marksans Footprint

BUSINESS SEGMENT - Capabilities across the value chain

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Global Foray: Key features:

Main markets: US, Europe, United Kingdom, Australia, and other emerging markets. Plans in place to tap huge Russian and CIS markets. Initiated dossier filling in these countries

Collaborations: MPL’s products are available through collaborations with big MNC companies

Quality Manufacturing: Its robust product basket and quality control measures as well as manufacturing accreditations such as UK MHRA and Australian TGA approved facilities enable MPL to establish its presence in the global markets

ANDA filings: List of proprietary products identified which are to be developed post patent expiry - It is filing 10 ANDAs with US FDA by June 2008

Sales Front ends: Rapidly built up a generic sales front end in the USA with investments in sales distribution.

Acquisitions & approvals: The Company intends to grow inorganically in the global markets: Already acquired an Australian company - Nova Pharmaceuticals. MPL plans to grow

inorganically in the US and Europe markets as well Already received approval for 5 products in Australia

With a strong focus on the US markets, the company has entered into an agreement with Pharmgen LLC, US for the development and filing of 11 ANDA's. The product list is a mix of off-patent and post patent protected molecules with cumulative annual sales of about USD

17 billion in the US

BUSINESS SEGMENT - Global Formulations

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Coverage and Divisions

Significant presence in major therapeutic areas in domestic market

Wide range of over 250 products in the domestic markets (80 feature in the ORG list)

These products are marketed through 5 distinct divisions as enumerate below:

Marketing Capabilities:

Pan India Field force of ~ 450 MRs

Carved a distinctive image for its products with innovative and aggressive marketing strategies

Sr. No Speciality Market Size (Rs millions)

Expected Market Growth %

Revenues FY 2007

(Rs Crore)

1 Cerebella: CNS (Neuro-Psychiatry) 19,340 12 110

2 Criticare: Oncology + Critical care 9,000 14 130

3 Mark Remedies: Gastro, Respiratory and Gynaecology

81,230 12 150

4 & 5 Zenmark and Marksans: GP & Institutions

124,430 11 400

Others 290

Total Market 230,400 12 1080

BUSINESS SEGMENT - Domestic Formulations

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Second largest producers of Ciprofloxacin and Ranitidine in India (Both COSs filed). Together the Ciprofloxacin Hydrochloride and Ranitidine Hydrochloride rank amongst the top 20 highest selling drugs in the world. COS already received for Ciprofloxacin

Provides API contract manufacturing services to world’s leading generic pharma companies

Key Focus Area: CVS, Ant diabetic, CNS, Pain management& Gastro Intestinal

The company is addressing antibiotic and antiulcerant therapeutic segments and in the process in expanding production into CNS, CVS, anti-diabetic and pain management therapeutic segments which are growing radically. These segments are estimated to be worth approximately US $ 20 billion over the next five years

In the domestic markets MPL has embarked on ambitious expansion projects to scale up its existing capacity, to enter new therapeutic segments covering high growth lifestyle-related diseases

MPL has reputed clientele and has been supplying and exporting its products regularly to big pharma companies & to various countries like Japan, Latin America, Bangladesh, Spain, Egypt, Jordan, Iran, Mexico, Germany and Africa

BUSINESS SEGMENT - API

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Expanding its API business by shifting from predominantly domestic market to the highly regulated markets of US and Europe

New API’s to be developed based on key products for formulation development with focus on Post patented Products

Develop several API’s to provide cost and time advantage to complement MPL’s US and Europe generic filings

Continue to be the preferred third party API supplier to the generic industry

Rapidly file COSs/DMFs into Europe and US markets (5 DMFs and 5 COSs in 2008-09)

New Product introductions: Commenced commercial supply of new products during the year Several validation pivotal batches have been sent to global generic players for their dossier

filings

BUSINESS SEGMENT - API Strategy

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Board of Directors

MD & CEO

Head HRCFOR&D/RAAPIFormulations

Domestic

Global

Manufacturing

Manufacturing

Sales

Formulation

API

RA

Purchases

Distribution

CS and Legal

Accounting, taxation

and IT

MANAGEMENT - Organization Chart

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Mr. Mark Saldanha – Managing Director & CEO

V Nagraj – Wholetime Director

Dr. Kim Tan – Director, nominee of Springhill Bio-Venture Fund

Mr. Ajay Mittal – Director, nominee of UTI Venture Fund

Mr. Mahesh Parekh - Independent Director

Mr. Kumar Nair - Independent Director

MANAGEMENT - Board of Directors

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Mark Saldanha Managing Director & CEO

Mr. Mark Saldanha, was associated with Glenmark Pharmaceuticals Ltd. as a whole time director and was instrumental in the growth of the company in mid and late nineties, before promoting this venture. He is well versed in the overall management of the company and has vast experience in managing the marketing, production and finance function of the company

The Promoter is currently engaged in the Pharmaceutical business only

The Company was set up by Mr. Mark Saldanha, a first generation entrepreneur and is rapidly expanding its business operations

MANAGEMENT - Promoter

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Name Designation Profile

V. Nagaraj Director - Sales & Marketing

He has done Graduation in Science and PGDMM. He has around 25 years of experience in Sales & Marketing. He is responsible for entire sales & marketing of Domestic Market

Jitendra M Sharma

Chief Financial Officer

He is a qualified chartered accountant and cost accountant and is having 13 years of experience in resources mobilization, developing systems, MIS and taxation

R.K. Jhingan Sr. Vice President -Business Development

He is a bachelor of pharmacy. He has vast experience of over 20 years in pharmaceutical industry. He looks after molecules and co-development and entering into research alliances

Bela Bhandari Chief Marketing Officer

She is a PGDBM, B. Pharma and has a good exposure in Export marketing. She is involved in the international marketing

Dr. P. B. Deshpande

Director – API He has done Doctorate in Organic Chemistry. He has around 24 years of experience in R&D, Product Development & Plant Operations. He is responsible for Strategic Business Development of APIs & overall in-charge of API operations at Kurkumbh Plant

Dr. Balwant S. Desai

Director – Quality and Regulatory Affairs

He has done Doctorate in Analytical Chemistry. He has around 20 years of experience in Quality Control/Assurance/Regulatory Affairs. He is responsible all Q.A./Q.C./R.A. activities

Mr. A. V. S. Ravishankar

General Manager - Operations

He is a master of pharmacy. He has handful in experience and plant operations. He is responsible for the entire plant at Verna, Goa

Mr. Rajan Sawant Head – Human Resources

He has Master's Degree in labour Study from M. I. L. S. Mumbai. He has also done B. G. L. & D. M. M. He has excellent track record of 15 years in H. R. He is heading entire gamut of HR initiatives for the organization

MANAGEMENT - Key Management Personnel

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Introduction Division dedicated to neurosciences for

treatment of psychiatry and neurological disorders

This market is poised for rapid growth due to lifestyle changes and growing awareness

Vision To achieve a growth of 100% in the

turnover by 2010 Be amongst the top 5 players over a period

of five years

Segment addressed Antipsychotic Antidepressant Antiepileptic Anxiolytic Memory Enhancer Stroke

New Launches

Indication Market Size

Rs mio

Risperidone Atypical Antipsychotic

900

Piracetam Memory enhancers 1200

Lorazepam Ataractic / anxiolytic 2200

Citicoline Cerebral strokes 1200

Methyl Prednisolone

Stroke/ spinal cord injury

450

Lamotrigine Epilepsy 2400

IVIG Immune dysfunction (GBS)

1500

PRODUCT RANGE - Cerebella: CNS (Neuro - Psychiatry)

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Introduction Globally Oncology is the fastest growing therapeutic segment MPL is carving out a niche position in Oncology through its Criticare division Criticare division focuses on Cardio care and Life saving higher end antibiotics In - licensing is expected to be the key growth driver for this division

Vision Marksans to have the first mover advantage of introducing First time niche molecules like

EGF,IL2, Oncophage, INF-Gel,EPO and Cancer Vaccine under this division. In-licensing products like Enoxaparin are to be the key growth drivers for cardio care

Biotechnology drugs, antineoplastics and immunomodulators to be the front runners To launch one to two in-licensed biotech products every year in the domestic market through

its Criticare division To capture 4% of Indian Oncology market by 2010 & 6% of domestic Critical care market by

2010

New Launches Indication Market Size (Rs mio)

Voriconazole Systemic Aspergillosis and Candidiasis. 700

Capecitabine Metastatic CRC and Breast Cancer 2,000

Gefatinib NSCLC as Fourth Line treatment 1,000

PRODUCT RANGE - Criticare: Oncology + Critical care

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IntroductionA multi- specialty division dedicated to GI disorders and Respiratory infections

~ 40% of domestic pharma market of Rs 28,000 crore is attributed to these two disorders

MPL markets Prescription/Ethical products focused on women's health, geriatric disorders, internal medicine, nutritional support and lifestyle disorder associated with gastro-intestinal, cardiology and diabetology under this division

VisionTo reach a turn over of INR 37 crores and emerge as a strong player in the segment

Segment AddressedGastro, Respiratory, Antibiotics, Gynaecology + Others

New Launches Indication Market Size

Rs mio

Salmon Calcitonin Osteoporosis 1200

Adefovir Depivoxil Hepatitis B 1000

Ursodeoxycholic Acid

Cholestatic Liver Disease

2200

Terlipressin Variceal Bleeding 240

Lactitol Monohydrate

Constipation, Hepatic Encephalopathy

2000

Pantoprazole + Sodium Bicorbonate

GERD, Ulcers 3000

Drotavarine Antispasmodic 2200

Codans Antitussive 4600

Rabemark (Rabeprazole)

Anti Ulcerant 3000

PRODUCT RANGE - Mark Remedies

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These divisions are focused on branded generic products and OTC and have 150 products covering almost the entire Pharmaceutical segment

They mainly cater through tender business to private hospitals, government hospitals, public sector undertakings, AFMSD, Indian Railways, Port Trust, etc

The current product range contains wide spectrum of products to capture maximum business in Institutional sector

The current business is around Rs. 40 Crore

The basket includes orals, parentrals and topicals

Health insurance is gaining wide acceptance and will further give an impetus to Institutional business

PRODUCT RANGE - Zenmark and Marksans: GP & Institutions

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Product Licensor / Joint R&D Indication Remarks

Interferon Alfa 2b Center of Genetic Engineering & Biotechnology, Cuba

Viral hepatitis infections & hematological cancers

Approved and registered for import and marketing, world market size: $1.0 billion (USD)

Granulocyte Colony Stimulating Factor (GCSF)

Beijing Four Rings, China Protein stimulator of bone marrow cells

Phase III trials completed, DCI approval received, world market size: $2.0 billion (USD)

Erythropoietin Beijing Four Rings, China Treatment of anemia in HIV and cancer patients

Product registration underway, world market size: $2.0 billion (USD)

Interlukin 2 Laboratorio Pablo Cassara, Argentina Melanoma and renal cell carcinoma

Phase III trials completed, product in registration with DCI

Recombinant epidermal growth factor cream (EGF)

Center of Genetic Engineering & Biotechnology, Cuba

Patients undergoing superficial and deep radiotherapy

Drug Control of India approval received, Product launch in Q1 of current fiscal year

Citicoline Laboratorios Gramon, Argentina Cardiovascular disorder Dossier awaited from the manufacturer, Phase III trials

Biopharmaceutical Pipeline

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ACQUISITION - Hale Group: Overview Marksans Pharma has entered into a share purchase agreement with UK's Hale Group to

acquire its entire share capital, along with its subsidiary company Bell Sons & Co (“Bell”). Marksans is acquiring Hale through its 100% subsidiary Marksans Pharma UK. The company is equally owned via the holding company by Philip Hale and Linda Shepherd

Bell is a well-established manufacturer of a broad range of OTC pharmaceuticals having full approval approval of the UK MHRA and currently holds 38 product licences. Licensed products contribute over 45% of Bell’s total turnover

Bell manufactures licensed products both as own branded products and, for certain customers, in own label form together with a range of unlicensed products. Customers include retailers, pharmacies, chemist wholesalers and cash and carry outlets

The company employs 106 people at its freehold licensed manufacturing site in Southport, Merseyside and has further 12 employees providing sales administration, buying and technical support

The company had clocked a turnover of £ 8.03 million and £ 8.94 million respectively for FY’05 and FY’06 (year ending December). The EBITDA margins for the said period stand at 12% and 14% respectively

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Product Basket:

Cough and cold remedies

Galenicals

Vitamins

Palliative and healthcare items

Oils

Antiseptics and disinfectants

The Company currently holds 38 product licences registered with MHRA. Licensed products contribute over 45% of the Company’s turnover

Under the OTC pharmaceuticals, the Company supplies its “own label” pharma products to all of the UK’s leading supermarket chains. The own label market now accounts for more than 45% of the Company’s total turnover

Product Group

9%

15%

2% 2% 6%

45%

5%

12%

4%

Antiseptics Bought-ins LiquidsOral Liquids Oils OintmentsPowders Sachets Misc

ACQUISITION - Hale Group: Products

50

The company is a preferred supplier to more than 300 customer all over the country, including the leading retail sector brands and major chemist wholesalers

UK markets represents 80% of the customer base and two third of total sales. The company’s largest customer accounts for 6% of total sales only. Thus the business is not customer centric

The Company has been in the export markets for more than 80 years now. Its products are well recognised and respected in the overseas markets

The company products are sold in more than 40 countries. Key markets are West Africa and Middle East

Turnover by Sector

46%

33%

21%

Retailer Wholesaler Export

ACQUISITION - Hale Group: Markets

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P&L SummaryPounds in million

The company has shown steady and sustained growth over the past 5 years, with turnover increasing by over 40% from £ 6.3 million in 2001 to £ 8.9 million in 2006. Based on the current performance growth is currently running at 5% per annum

The slight decline in gross margin and profitability in 2005 reflects the impact of the new manufacturing plant installed in that year leading to an increase in salary and depreciation costs. The gross margin going forward is likely to improve as the fixed elements of salary and depreciation would form a smaller percentage of cost of sales as turnover increases

Particulars FY2002 FY2003 FY2004 FY2005 FY2006 FY2007E

Turnover 6.76 7.28 8.01 8.03 8.94 9.33

Gross Profit 1.67 1.90 2.12 1.59 2.00 2.13

EBITDA 0.99 1.20 1.39 0.96 1.24 1.29

Gross Profit Margin 25% 26% 27% 20% 22% 23%

EBITDA Margin 15% 16% 17% 12% 14% 14%

ACQUISITION - Hale Group: Financial Summary

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ACQUISITION - Hale Group: Financial Summary

Particulars FY2002 FY2003 FY2004 FY2005 FY2006

AssetsFixed Assets 2.54 2.47 3.27 3.07 2.80Current Assets 2.26 2.87 2.85 3.32 4.27Total 4.79 5.34 6.11 6.40 7.06

LiabilitiesShare Capital 0.01 0.01 0.01 0.01 0.01Revaluation Reserve 0.40 0.39 0.39 0.39 0.38Profit and Loss Account 2.94 3.47 4.12 4.37 4.76Current Liabilities 1.45 1.47 1.60 1.63 1.92Total 4.79 5.34 6.11 6.40 7.06

Balance Sheet SummaryPounds in million