Brian Tempest has worked in the pharmaceutical industry for 36 years, including positions at major companies like Glaxo and Beecham. He joined Ranbaxy 12 years ago and has helped transform it from a small domestic Indian company to a top 10 global generic drug manufacturer. Tempest has lived in India for the last 8 years while serving as President, Managing Director, and Chief Executive Officer of Ranbaxy. He will be retiring from Ranbaxy in December 2007 at age 60. The document discusses India's advantages in pharmaceutical manufacturing and clinical trials due to lower costs, a large skilled workforce, and a large treatment-naive patient population. It provides statistics on India's increasing share of generic drug approvals in markets like the

1. Partners in Globalisation
UK Trade & Investment
British Business Group in Mumbai & Pune
Dr. Brian W Tempest
Chief Mentor & Executive Vice Chairman of the Board
Ranbaxy Laboratories Limited, Delhi, India
Ranbaxy Case Study
Mumbai – Thursday 27th
September 2007
BY - PAVNEET SINGH KOHLI

2. DR. BRIAN W. TEMPEST CSci, CChem, MRSC, BSc, PhD
Brian Tempest has worked in the pharma industry for the last 36 years. During
this time he has worked for several pharma majors, including Glaxo, Beecham &
Searle, around the world and joined Ranbaxy 12 years ago. During this period
Ranbaxy has transformed from a small company focused on the India domestic
market, to a top 10 global generic company. Dr. Tempest has lived in New Delhi,
India for the last 8 years, and has been President, Managing Director & Chief
Executive Officer and Chief Mentor & Executive Vice Chairman of the Board.
Dr. Tempest retires from Ranbaxy in December 2007 having reached 60.
Dr. Tempest is one of a few westerners to have held a leadership position in an
Indian blue chip MNC, and has an unusual insight into India.
Dr Tempest is also a Honorary Professor of the Management School at Lancaster
University, UK, and he sits on the Editorial Board of the Journal of Generic
Medicines and the Advisory Board of the India Fund held by JM Financial
Investment Managers Ltd n Mumbai.
brian.tempest@gmail.com / brian.tempest@clara.co.uk
Mobile +91-98100-91192 / Tel:+44 1753 864 616

3. Asia’s Share of the World GDP (at PPP in %)
Year 1870 1913 1950 1973 2001
China 17% 9% 5% 5% 12%
India 12% 8% 4% 3% 5%
Japan 2% 3% 3% 8% 7%
Rest of Asia 7% 5% 7% 9% 13%
Total Asia 38% 25% 19% 25% 37%
Source – WEF
- was 59% in 1820 with India 16%, China 33%

4. Asia on the Rise
Source – FT

5. A race to prosperity

6. The Productivity Advantage
India a usa Pharma view USAIndia a usa Pharma view USA
1 chemist Better education x 1.3 1 chemist1 chemist Better education x 1.3 1 chemist
70 hours/week Longer working time x 1.3 50 hours/week70 hours/week Longer working time x 1.3 50 hours/week
$ 800 monthly Lower cost x 20 $ 12,000 monthly$ 800 monthly Lower cost x 20 $ 12,000 monthly
Sources: IPHMR Conferences, New Delhi August 2004

7. The Education Advantage

8. The Education Advantage
Engineers/Science graduates p.a – India 0.7m, China 0.5m, EU 0.5m, USA 0.4m, Japan 0.3m

9. The Pharma Plants Advantage
Active Pharmaceuticals Facility, Mohali Dosage Forms Facility, Paonta Sahib

10. Generics – API’s
USA DMF filings by India % Share of USA DMF filings
India China
2004 27% 9%
2005 37% 10%
2006 44% 14%
Q1’07 48% 17%
Source: US FDA / J P Morgan, 2 May 2007
Source: US FDA, Credit Suisse
India China
2004 187 48
2005 252 87
2006 357 128
Source: US FDA / J P Morgan, 6th
August 2006

11. - One in every four ANDAs filed by Indian Companies in top
USA FDA filers
Source: KPMG
- No Chinese generic company has yet filed a USA FDA ANDA
but expected in 2008
Generics - ANDAs
0
50
100
150
200
250
300
2002 2003 2004 2005 2006
24
46
64
144
ANDA Filings in USA by Indian Companies
250

12. Patient Recruitment

13. Cost Advantage
China India
Cost 40 16
Patients/site 250 500
Based on USA at 100 Index
Source: BCG report ‘Looking Forward 2006’
Country USA India
Sites 22 8
Subject 626 896
Source: Andy Lee Pfizer Global, head clinical study and
data management. Business India, August 13, 2006
“………..The Country’s World Class skills in Chemistry & IT and it’s large treatment naive
patient population provides added allure” Boston Consultancy Group
Harnessing the power of India 2006
The Pharma Clinical Advantage
Medical Tourism
Cardiac Surgery $000s
USA 30
Singapore 20
Thailand 14
India 5-7
Source: Business world, 18th
Dec’2006
Patients
- Naïve untreated patients
- HIV 50m
- Diabetes 32m
- HT 5m

14. Ranbaxy Today
 Amongst the top 10 Global Gx companies
Ground presence in 49 countries,
products sold in > 125
 International business ~ 80% of sales
Ranked # 1 in the Indian Pharma industry
 Manufacturing locations in 9 countries
 > 11,000 employees, 51 nationalities
 Strong Generics & Innovative research
capabilities
2001 2003 2006
$ 553
$ 972
$ 1340*
CAGR 19 %
Global Sales
Worldwide Presence
* Unaudited

15. Research & Development
 Dedicated facilities for Gx & Rx research
 Over 1400 people, ~ 300 Doctorates
 Strong IP & Global Regulatory expertise
R&D I
R&D III
R&D II
R&D IV
2006
$ 85 Mn R&D spend
6.5% - 7% sales

16. 2006 Sales by Geography
Europe & CIS
25%
API
8%
Americas
33%
Asia
27%
Africa
7%
$ 1.34b

17. 1990
 Only Trading companies
in:
Nigeria
Malaysia
Thailand
The Role of the UK
1995
 First Trading company in
the West:
UK
Today
 Worldwide President office
 European Regional Director
office
 UK domestic operation
 Sales in 125 countries

19. “The Indian System looks ramshackle
and improvised. But at its best it is
capable of brilliance”
“When we say the Silicon Valley is
built on ICs we don’t mean integrated
circuits – we mean Indians & Chinese”
“The UK needs to wake up to what
India is becoming”
Source: DEMOS report – January 2007
Perceptions of India

20. Thank You