India – The Pharma Advantage

1. India – The Pharma Advantage Dr. Brian W Tempest Chief Mentor & Executive Vice Chairman of the Board Ranbaxy Laboratories Limited, Delhi, India Tokyo – 14th June’06

2. Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “likely”, “project”, “should”, “potential”, “will pursue” and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. Ranbaxy does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Disclaimer

3. Davos 2006 Source – FT

4. The Productivity Advantage India a usa Pharma viewUSA 1 chemist 1 chemist Better education x 1,3 70 h/week50 h/week Longer working time x 1,3 $ 800 monthly $ 12,000 monthly Lower cost x 20 Sources: IPHMR Conferences, New Delhi August 2004

5. The R&D Investment Advantage Most attractive R&D Investment locations: 1. China 2. USA 3. India 4. Japan 5. UK Source – UNCTAD 2005

6. The R&D Investment Advantage -reasons why India • Qualified Scientists & Engineers • Global India players with Alliances • English speaking • TRIPs compliant – first patent March 2006 • IIT, IIM & other scientific institutions Source – UNCTAD 2005

7. Investment by top 15 Indian Domestic Pharmaceutical Companies $m 2000 110 2001 160 2002 200 2003 250 2004 400 2005 450 - Leading to even more Pharma R&D facilities and factories Source – Citigroup

8. Investment by foreign Pharma companies

9. The Global Generic Market – growing everywhere $b 20042009 USA 15 27 W Europe 9 14 Japan 3 4 Rest of America 6 9 ROW 2540 Total 58 94 Source: Frost & Sullivan “India could soon dominate the entire production chain for generics” IMS prediction No 4 Scrip April 5 2006

10. The Pharma Advantage Competitive Advantage – Aggressive Home Market

11. The Pharma Advantage Competitive Advantage - Cost of Manufacture Active Pharmaceuticals Facility, Mohali Dosage Forms Facility, Paonta Sahib Highest number of FDA approved plants outside the US • No. of FDA approved plants: • 19901 • 1995 10 • 44 • 2004 105 • Source: Crisil / IPA • Exports ($m): • 1990 15% • 45% • 2010E 70% • Source: IPA

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13. The Pharma Advantage Competitive Advantage - Cost of Innovation R&D I R&D II R&D III R&D IV

14. The Pharma Advantage – API’s 1999 13% 2000 17% 2001 20% 2002 30% 2003 35% 2004 40% Source: Citigroup *DMF – Drug Master Files Q1 2006 India alone 43% Chindia filings USA DMF filings by India 1990 1 1995 4 2000 36 2004 162 Source: Crisil

15. The Pharma Advantage - ANDAs Annual USA ANDA Filings Ranbaxy 29 Sun 22 Orchid 18 Lupin 14 DRL 13 Cadilla 12 Source: Pharmabiz 8th Sept’ 2005 - One in every four ANDAs filed by Indian Companies • Source: KPMG • -29 ANDAs p.a ranks in top 3 filers

16. Leading Generic Companies Annual Sales (US$ Millions) Source : Company /Financial reports & presentations

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