Dr. Reddy's Corporate Presentation

The Origin

Year of Establishment

February 1984

Founder

Dr. Anji Reddy Entrepreneur Scientist

1980-84 Standard Organics Limited 1976-80 Uniloids Limited 1969-75 Indian Drugs and Pharmaceuticals Limited

Dr.Reddy’s under Dr. Anji Reddy Pioneer and Trendsetter in Indian Pharmaceutical industry Turned around Indian Bulk Drug industry Indian Bulk Drug industry Mid-80s Mid-90s 2000 onwards

Import-dependent Self-reliant Export-oriented industry

•

Transformed industry sobriquet from ‘Immitators’ to ‘Innovators’

•

1st Indian Pharma Company to take up Drug Discovery research

Corporate Overview

We are … An Integrated Global Pharmaceutical Company

Our Purpose:

“To help people lead healthier lives”

Our Vision:

“To become a discovery led global pharmaceutical company”

Dual Impact Approach •

Improve accessibility through generic pharmaceuticals

•

Satisfy unmet medical needs through new and improved pharmaceuticals

Global Presence

Focus on US, Germany, India and Russia Wholly-owned subsidiaries in the USA, UK, Russia, Brazil, New Zealand, Turkey and Mexico Joint Ventures in China, South Africa and Australia Representative Offices in 16 countries 3rd party Distribution setups in 23 countries

Our Businesses

Near- Medium Term Value Creation

Medium-Long Term Value Creation

PS

AI

Our Businesses : APIs

• Consistent Track Record : Profitable growth in last four years • Products Commercialized in Regulated Market : More than 25 • Products Commercialized in Near-Regulated Markets : More than 100 • Strong Relationships

: Top tier global and regional generic players in key markets

• Add Strategic Value

: To the company’s finished dosage businesses globally

• Core Platform

: Provides high degree of vertical integration & cost advantage

• Strong Customer Base

: Servicing more than 800 customers spread over 100 countries and Six continents

Our Businesses : APIs

Regulatory Strengths • Ranked No. 3 in US DMF filings Globally • Ranked No. 1 in US DMF filings from India • Dr. Reddy’s has • 127 Active US DMFs • 50 Canadian DMFs • 69 EDMFs • 21 CEPs

Our Businesses : APIs Operations Capabilities • Capabilities in Major Chemistries

: 24

• Reaction Volume with Concurrent scaling-up and Piloting : Over 2.3Mn Litres • State-of-the-art Equipment and Instruments

: Six USFDA approved plants in India One USFDA approved plant in Mexico One USFDA inspected plant in Mirfield, UK

• Fully Integrated Operations

: Supply chain and ERP systems (SAP R/3)

• Environmental Compliance

: Contributing to a sustainable world with zero liquid discharge systems

• HPAI

: Developed and commercialized Highly Potent Active for Oncology formulations

Ingredients

Our Businesses : Custom Pharmaceutical Services

We are a partner of choice for Innovator companies with service offerings spanning the entire value chain •Strengths

: Mexico provides critical mass and broadens relationship with Innovator companies Dowpharma/Chirotech acquisition in UK provides proprietary chiral and biocatalysis technology

•Services

Forms)

: Process research Analytical development Preformulation and formulation development Clinical trial supplies Pilot scale manufacture ( API and Dosage Product regulatory support

•Broad Client Base •

Large Pharma : More than Five

•

Emerging Pharma, Biotech & Fine Chemical : More than Ten

Our Businesses : Custom Pharmaceutical Services

• R&D facilities

: Three Centres with over 300 chemists & engineers well-skilled in cGMP requirement Separate Labs for Formulation development . Total strength of 60 scientists

• Organic Chemistry Labs : Twenty One • Formulation Development: Three • Analytical Labs

: Three

• Kilo Lab

: One

• Unique Manufacturing Capabilities

: Steroid and Cytotoxic

Our Businesses : Generic Finished Dosages

Current Presence: USA, Germany, U

NA Established in 2001, Over 29 products in the market 11 new products families launched in FY08 Launched Private Label (Store Brand) OTC Ranitidine 150, Ranitidine 75, Cetirizine 10mg in FY08 EU Started operations in 1999, Acquisition of BMS in 2002 – over 30 products Acquisition of betapharm in 2006 – 145 products 5th largest branded generic player in Germany Acquisition of Jet Generici Srl. In Italy

Our Businesses : Generic Finished Dosages

Key Strengths • Excellent control over supply chain • We encompass all critical capabilities - Process development, Submission of API dossier, Patent & manufacturing expertise • Cost-effective/high speed development • Track record of successful ‘Day 1 launches’ with significant market share • Our expertise in packaging recognized – WORLDSTAR, ASIASTAR, AMERISTAR • DIANA Award for North America recognizing efficient & innovative business practices.

Our Businesses : Branded Finished Dosages

• Track Record

: Consistent growth and sustainable delivery of profits in last 16 quarters

• Market Presence

: Products in over 45 countries

• Significant Presence

: India (Ranked 10th) Russia (Ranked 14th in retail segment)

• Market Sales Force

: Over 2,000 (India, Russia, China)

• Focus on New Product Launches

: 15-20 new products launched annually

• Geography Expansion

: Australia, New Zealand, Turkey

• Building Scale

: South Africa, Brazil, Mexico

Our Businesses : Branded Finished Dosages

Broad Therapeutic Area Coverage

Our Businesses : Branded Finished Dosages

More than 200 brands collectively Top Brands Omez (Omeprazole)

No. 1 in 14 countries

Stamlo (Amlodipine)

No. 1 in 8 countries

Nise (Nimesulide)

No. 1 in 7 countries

Ciprolet (Ciprofloxacin)

No. 1 in 5 countries

Ketorol (Ketorolac)

No. 1 in 5 countries

Enam (Enamapril)

No. 1 in 2 countries

Our Businesses : Branded Finished Dosages

Global Oncology – Niche Therapeutic Area  Leading position in India; growing at ~ 40%  No 1 in the Filgrastim and Oxaliplatin markets  No 2 in the Gemcitabine, Docetaxel and Temozolomide markets  Global commercialization presence in US, Europe, India,Russia, South Africa & Brazil  Strong Biologics & Cytotoxic Manufacturing Infrastructure to address the need of Oncology Market  Robust portfolio of Targeted Therapies, Cytotoxic ,Anti-Hormonal & also the Supportive Care  Successful track record in business development & strategic alliances

Our Businesses : Discovery Research

Two Discovery Research Centers Hyderabad, India for analog based approach Atlanta, USA for target-based approach • NCEs under development

: Three; with focus on cardiovascular, metabolic disorders and cancer

• Calibrated Investments

: For enhancing pre-clinical pipeline

• Accelerating Clinical Development

: Both in-house and through partnerships

• Focus

: Core therapeutic areas with a project-based approach

• Scientists

: Over 300

Our Businesses : Specialty Pharmaceuticals

Building

: A branded, innovation-based business of differentiated products

A Bridge

:Between Core Businesses and Ongoing Discovery Efforts

Technologies acquired from Trigenesis 7 Products with marketing rights across geographies and technologies Internally developed proprietary drug delivery platforms (Ex. Micro-Spheres) Current internal compounds under pre-clinical and clinical development (Ex. Biologics, NCEs, etc) • Focus TAs

: Dermatology and Oncology

• Strong, Targeted Business Development Effort : To accelerate market entry & achieve critical mass

Our Businesses : Biologics Aspirations • Build a world-class Biosimilar development and commercialization organization • Leverage capabilities to accelerate the move up the Biologics Value Chain Products Grafeel® (biosimilar G-CSF) launched in India and multiple other geographies including Latin America, South East Asia & CIS countries Reditux® (biosimilar rituximab) launched in India Medium term entry in Europe and North America Pipeline Two products in / near clinical development Six products in pre-clinical development

Our Businesses : Biologics

People

Team of 250 with 35 PhDs comprising scientists with significant experience in big biotech/pharmaceutical companies in US/EU

Development Infrastructure R&D facility that can accommodate parallel development of upto four products with state-of-art facilities World class animal facility dedicated to Biologics for preclinical studies Manufacturing Capacity Mammalian cell culture capacity: 800 (4 X 200) Litres Microbial fermentation capacity Large-scale mammalian cell culture capacity expansion (15000 Litres) by 2010 Integrated fill-finish capabilities

Infrastructure Bandwidth

• API Facilities

: Six FDA-Inspected plants in India One FDA-Inspected plant in Mexico One FDA-Inspected plant in Mirfield, UK more than 2.3 million litres reaction volume

Finished Dosage Units

: Six in India, With ISO 14001 and ISO 9001 certifications, Approved by USFDA, MHRA (UK), MCC (South Africa), TGA (Australia), ANVISA (Brazil), TPP (Canada) One FDA-Inspected plant in USA

Biologics Facility

: One in India, audited by multiple regulatory agencies

Custom Pharmaceutical Services : Two Technology Development Centres (TDC) in India and One in Cambridge, UK Discovery Research Centres

: Hyderabad, India Atlanta, USA

Integrated Product Development – a strong platform

tate-of-the-art IPDO Facility First of its kind in India. Creating a Prolific Global Generics Product Development Engine

R&D Team

Integrate the product development activity of APIs and Finished Dosages



Increase speed, flexibility and reliability



Effective combination of chemistry and formulation skills with legal, regulatory and IP expertise

| Over 700

Regulatory Team | Over 55 IP Team



| Over 50

Integrated Business Model

IP Framewo rk

Drug Discovery R&D Expertise

Pharmaceutical Services and Active Ingredients Finished Dosages Manufact uring & Operation al Excellenc e

Sales & Marketin g Capabilit ies

trategic value across the value-chain

bility to secure long-term cost competitivene ss

everage R&D (scale & infrastructure) across business

Corporate Governance

Committed to progressive governance Adopted international governance practices & processes Commitment to highest standards of disclosures & transparency Only Pharma company from India to be listed on the New York Stock Exchange SOX Compliance Code of Business Ethics

Financial Snapshot

(USD Mn)

Financial Year

Business Development

Authorized Generics & Patent Settlements

Pursuing Partnership & Alliances

Acquisitions

•

Merck deal : Launched the AG version of Zocor® & Proscar® in June’06; Settled Propecia

•

GSK deal : Settlement in October’06 and enables early launch of AG version of Immitrex® in the US in Q4 CY08 ahead of patent expiry in Feb 09

•

Co-development & commercialization of NCEs : Rheoscience for Balaglitazone, Argenta for new approach to treat COPD(1), ClinTec International for DRF 1042

•

Expanding Portfolio : Partnerships and alliances in the US/EU, global in-licensing for rest of the world markets

•

Dow Pharma: A non-exclusive license to Dow’s Pfenex Expression Technology™ for biocatalysis development.

•

BASF: Strengthen the supply chain for North America

•

betapharm : Access to 2nd largest generics market globally with significant entry barriers

•

Falcon (Mexico) : Build critical mass and broad-base customer relationships with innovator companies in the Custom Pharmaceutical Services segment

(1) Chronic Obstructive Pulmonary Diseases

• World wide employees

: 9500+

• India

: 7878

• Germany

: 394

• Rest of Europe

: 101

• North America

: 109

• Mexico

: 322

• Rest of the World

: 771

1700+

Research & Scientific staff

3300+

Marketing & Sales force

3300 +

Manufacturing staff

40 +

Nationalities

People – Our DNA

• Attract, Develop and Retain

: Multi-skilled high-performers

• Create

: A learning organization

• Develop and Nurture

: Young leaders

• Promote

: Teamwork and collaboration

• Build

: A diverse workforce and meritocracy

People – Our DNA

• Talent Management • Learning and Development • PerfECT (Performance Enhancement and Coaching Tools) • Organizational Climate Survey • Annual Celebrations to recognize excellence • 3600 feedback Survey • Alumni Network – Friends Forever

Fast-tracker program Acceleration of career growth for high-performers

Track

record 2008 2008 2007 2007 2006

2008 2007 2006 2005 2001 1997 1993

Acquisition of BASF’ facility at Shreveport, US Aquisiton of Dowpharma SmallMolecules business associated with Dow’s Mirfield and Cambridge, UK Sites World’s first biosimilar monoclonal anti-body ,Reditux (rituximab) launched Fastest Indian Pharma Company to cross $1billion in annual revenue 1st manufacturing company to be Sarbanes-Oxley certified

2006

1st authorized generic deal with multinational pharma

2006

Key acquisition betapharm (Germany)

2005

Key acquisition “Falcon” (Mexico)

2001

1st to be listed on the New York Stock Exchange

1997

1st to out-license an NCE to a multinational pharma

1993

Discovery Research commenced

Commitment to Sustainability

We are committed to Access and Affordability of medicines through a business model that prioritizes the manufacture of affordable generic medicines and investment in discovery of new molecules that meet unmet and poorly met medical needs.

Triple Bottom Line Approach…

Dr.Reddy’s Foundation – Livelihoods & Education

Patient Assistance Programs & DRHFE Employee Engagement - Volunteer Program & Power of Ten

Customer: FDA approved, Product safety (Pharmco vigilance) Zero Liquid Discharge & SHE technologies Environment: ISO 14001 & OHSAS 18001certified facilities Suppliers: mySAP business Suite Corporate Governance Employees: Policies / Talent Mgmt Board / Leadership devpt / BPE

To help people lead healthier lives through global access to medicine

Triple Bottom Line Approach…

• Nurture & Train

: Employable young adults from financially weak backgrounds

• Livelihoods created so far

: 1,50,000

• Aim

: To create 1 million livelihoods by 2010

• Centres

: Sri Lanka and Vietnam

• Tie-up

: With major corporates for customized manpower training

Result: Over 80% beneficiaries reported an increase in their earnings through successful recruitment or by becoming entrepreneurs

Achievements

NDTV Profit Business Leadership Awards 2007 Business Leader in the Pharmaceutical Sector

Dun & Bradstreet American Express Corporate Awards 2007

Best Corporate Social Responsibility Initiative 2007 BSE - India

Pharma Excellence Awards 2006-07 for sustained Growth The Indian Express

Best Employers in India 2007 Award Hewitt Associates & The Economic Times

Asia-Pacific HRM Congress 2007 Global HR Excellence Award for Innovative HR Practices