Ipca Greetings from

Ipca
Ipca Laboratories Limited
Partnering Healthcare Globally

September - 2006
Company Overview
Incorporation 1949
Present Management since 1975
Rs. 5.00 Mn.
Turnover in 1975
USD 0.11 Mn.

Ipca
Rs. 7533 Mn.
Total Turnover F.Y. 2005-06
USD 167 Mn.
Rs. 4018 Mn.
Exports F.Y. 2005-06
USD 89 Mn.
Number of Employees (Over 4,500)
Fully integrated
pharmaceutical
company producing
Business Model
Generics & Branded
Formulations,
Intermediates & APIs
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Revenue break-up

F.Y. 2005-06 - Rs.7533 Mn.

(USD 167 Mn.)

Formulations APIs / Intermediates Others

Ipca
Rs. 5013 Mn. Rs. 2477 Mn. Rs. 43 Mn.
(USD 111 Mn.) (USD 55 Mn.) (USD 0.95 Mn.)

International International
Rs. 2100 Mn. Rs. 1918 Mn.
(USD 46 Mn.) (USD 43 Mn.)

Domestic Domestic
Rs. 2913 Mn. Rs. 559 Mn.
(USD 65 Mn.) (USD 12 Mn.)

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Formulations & API share

Formulations
66%

APIs /
Intermediates
34%
Ipca
Based on 2005-06 turnover of Rs. 7533 Mn. (USD 167 Mn.)

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 Ipca
Manufacturing Facilities

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Formulations

Location Dosage Form Approvals / Inspections

Athal (Silvassa) Tablets & Capsules UK-MHRA, TGA-Australia, MCC-
Capacity – 8 billion tablets p.a. S.Africa, ANVISA – Brazil
Ratlam (M.P.) Tablets & Liquids MCC-S.Africa
Kandla (Gujarat) Betalactum – Tablets, UK- MHRA, TGA – Australia,

Ipca
Capsules & Dry Syrups. MCC – South Africa, ANVISA –
Brazil
Danudyog Estate Tablets
(Silvassa)
Dehradun (H.P.) Tablets Production Commenced in

May-2006
APIs & Intermediates
Ratlam (M.P.) Various APIs & Intermediates US – FDA
Capacity – 1505 MT p.a. TGA – Australia
Indore (M.P.) Various APIs & Intermediates
Capacity – 932 MT p.a.
Aurangabad (Mah.) Various Intermediates
Capacity – 600 MT p.a. 6 of 47
 Ipca
Domestic Marketing

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Domestic Marketing Profile
 All India Rank ORG-IMS : 23 (MAT Aug‘06).
 20 Depots , 2 C&F agents & 2 Super Stockiest
across India.

Ipca
 7 Marketing Divisions.
 Detail Persons (MRs) -1514
 Over 1500 Wholesalers.
 4 brands among top 300 brands (MAT Aug’06)
 Sales of price-controlled products - 16%
(52% - 7 years back).

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MAJOR BRANDS with Sales > USD 1 mn. (ORG-IMS Aug’06)

Brand Size
Brand Name Therapeutic Group
Rs. Mn. USD Mn.
Lariago Antimalarial 422 9.3
Perinorm Gastro-intestinal 173 3.8
Tenolol Cardiovascular 145 3.2

Ipca
Zerodol Pain Management 208 4.6
Tenoric Cardiovascular 149 3.3
Glycinorm Antidiabetic 150 3.3
HCQS Pain Management 114 2.5
Rapither Antimalarial 83 1.8
Eltocin Anti-Bacterials 79 1.7
Keftragard Anti-Bacterials 78 1.7
Malirid Anti-Malarials 72 1.6
Larither Antimalarial 65 1.4
Pacimol Pain Management(NSAID) 60 1.3
Sultax Antibacterial 54 1.2
Above brands account for 54% of Domestic Formulations Sales
Above Includes Brand Extensions
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Contribution of Therapeutic Groups
(ORG – IMS March’06)
MAT-
March’06
Value MAT-Mar’06 %

Ipca
Therapeutic Group (Rs.Mln.) Contribution
Cardiovascular +
Diabetology 871 28%
Antimalarial 664 21%
Antibacterial 507 16%
Pain Management 466 15%
Gastro-intestinal 261 8%
CNS+Dermatalogy 205 7%
Cough & Cold 109 3%
Others 73 2%
Total 3156 100%
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Domestic Marketing Divisions

General 3C Innova Intima Activa Hycare

Pharma

Product Range General Cardiac- CNS & Mature Pain & Cardiac-

Ipca
Practitioners Diabetic Derma Brand GI Diabetic
s
Year Launched 1976 1997 2001 2002 2003 2004

Medical Rep. 432 217 213 319 181 152

Force
Brands (Nos) 22 17 23 26 10 9

Sales 05-06 in 1003 450 191 947 240 82

Rs.Mn. / (22) (10) (4) (21) (5) (2)
(USD Mn.)
Growth–12mth 31% 31% 52% 37% 79% 68%
Note : The above sales are primary sales.
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Growth – Ipca vs Industry (ORG-IMS Aug’06)

MAT Ipca Industry

Sept'05 31.60% 9.80%

Ipca
Oct'05 16.10% 7.40%
Nov'05 16.80% 8.20%
Dec'05 16.60% 8.60%
Jan'06 18.00% 9.50%
Feb'06 19.90% 10.90%
Mar'06 25.30% 15.60%
Apr'06 23.70% 15.60%
May'06 23.50% 16.20%
June'06 22.70% 15.80%
July'06 24.50% 16.90%
Aug'06 16.00% 13.30%

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New Product Sales

Value Value %
(USD Mn.) (Rs. Mn.) Contribution

Ipca
Products Launched in 2003–04 6.03 272 9%

Products Launched in 2004-05 7.47 336 12%

Products Launched in 2005-06 2.36 106 4%

Sub Total – New products 15.86 714 25%

Products Launched before 2003 48.87 2199 75%

Net Domestic Formulation Sales
64.73 2913 100%
in 2005-06
Note : The above sales are primary sales.
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 Ipca
International Marketing

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Highlights
 Exports to over 100 countries.
 Recognised Trading House.
 9th largest pharma exporter from India.



Ipca (Source : Economic Times)

54% of sales is from exports.

Subsidiaries in USA, UK, South Africa,
Nigeria & Brazil.
 Marketing offices in Russia, Kazakhastan,
Ukraine, Vietnam, Philipines, Kenya &
Sri Lanka
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Highlights contd…..

 Field-force to promote brands in Cambodia,

Kazakhastan, Kenya, Mauritius, Myanmar,
Oman, Russia, Sri Lanka, Sudan, Uganda,

Ipca
Ukraine, Vietnam & Yemen.
 Formulations Dossiers registered / under
registration in 68 countries.
 Life Time Achievement Award from Chemexcil
in 2004 for export performance.

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 Continent-wise Exports 2005-06
Rs. In Crs

Bulk drugs/ Growth

Continent Year Formulations Intermediates Total over P.Y. Cont.%
EUROPE 2005-06 84.29 90.11 174.40 -21% 43%
2004-05 139.61 81.04 220.65 54%

Ipca
AFRICA 2005-06 51.18 11.57 62.75 53% 16%
2004-05 33.19 7.78 40.97 10%
ASIA 2005-06 10.26 39.41 49.67 21% 12%
2004-05 10.73 30.24 40.97 10%
CIS 2005-06 56.40 1.05 57.45 28% 14%
2004-05 44.06 0.73 44.79 11%
AMERICAS 2005-06 4.25 42.54 46.79 -10% 12%
2004-05 4.14 48.05 52.19 13%
AUSTRALASIA 2005-06 3.60 7.17 10.77 -2% 3%
2004-05 4.71 6.30 11.01 3%
Total 2005-06 209.98 191.85 401.83 -2% 100%
Total 2004-05 236.44 174.14 410.58 100%

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International Business
(94) (89)
(USD Mn.)
4500 (82) 4106 4018
Rs. Mn.
4000 3575

Ipca
(62)
3500
(52) 2780
3000
2313
2500
2000
1500
1000
500
01-02 02-03 03-04 04-05 05-06

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 Ipca
International
Formulations Business

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Formulations Exports 14%
Growth % (54)
30% 2364 -11%
(USD Mn.)
2500 (47) (46)
Rs.Mn.)
2067 2100
33%
2000 (37)

Ipca
1595
(27)
1500 1195

1000

500

0
01-02 02-03 03-04 04-05 05-06
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 Ipca
International
API Business

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 Focus on submission of Drug Master Files in
USA & Europe.
 69% of API sales from USA & Europe.


Ipca
Strong API pipeline.
One of the largest manufacturer of APIs
Atenolol, Propranolol, Chloroquine,
Amodiaquine, Artemisinin derivatives, Pyrantel
Salts, Frusemide, Hydroxychloroquine
Sulphate.

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API Exports 10%
Growth % 15% (43)
(USD Mn.) (40) 1918
2000 Rs.Mn.) 27% 1741
(35)
1507
6%

Ipca
1500 (26) (27)
1118 1186

1000

500

0
01-02 02-03 03-04 04-05 05-06
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Drug Master Files
Sr. US UK Canada
Australia EDQM
No. FDA MHRA HPFB
1 Atenolol
2 Trimethoprim
3 Pyrantel Pamoate
4 Furosemide
5 Metoclopramide HCl

Ipca
6 Hydroxychloroquine Sulphate
7 Flumequine
8 Chloroquine Phosphate
9 Triclosan
10 Pyrantel Tartrate
11 Propranolol HCl
12 Metoprolol Tartrate
13 Hydrochlorothiazide
14 Losartan Potassium
15 Metoprolol Succinate
16 Probenecid
17 Pentoxyfylline
18 Nabumetone
19 Balsalazide Disodium Dihydrate
20 Chlorthalidone
21 Lisinopril
22 Metformin
23 Mesalamine
T otal 22 8 4 5 11 24 of 47
 Ipca
International
Business Strategy

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Branded Promotional Markets
 Aggressive Brand promotion in the S-E. Asia,
CIS & African markets.
 Improve reach / penetration.

Ipca
 Aggressive product registration.
- Dossiers registered : 851
- Under registration : 1456
 Field-force expansion
Continent Field-force
Current Planned
Strength Strength
CIS 198 250
S-E. Asia 76 90
Africa 78 90
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Developed Generics Market
United Kingdom
 68% generic sales to developed markets is from
U.K.

Ipca
 Subsidiary incorporated in U.K. for Dossier
filings.
 75 product dossiers targeted for registration in
U.K.
- Approved - 14
- Submitted - 21
- Cleared by R&D - 15
- Under development - 25
 Marketing through Distributors.
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 Other European countries
 Product dossiers registration work initiated
in Hungary & Portugal.



 Ipca
Subsidiary Office opened in Portugal.

Marketing through Distributors.

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 Australia & New Zealand

PRODUCT NEW
AUSTRALIA
DOSSIERS ZEALAND

Ipca
Registered 5 2
Submitted -- 17
TOTAL 5 19

Marketing is done through distributors.

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Developed Generics Market

2004-05 2005-06
Country Sales Sales Growth
(USD Mn.) (USD Mn.)

Ipca
U.K. 25.57 14.92 -42%
Europe (excl.
3.91 3.81 -3%
U.K.)
South Africa 2.37 2.46 4%
New Zealand /
1.08 0.80 -26%
Australia
Total 32.93 21.99 -33%

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United States / Canada – Generics Market

 20 products identified for development and

ANDA filing in a phased manner.
 Most ANDAs to be backed by own APIs.

Ipca
 Marketing partner identified and agreement
signed on profit-sharing basis.
 5 ANDAs filed.
 Another 4 ANDAs are in Pipeline which are
targeted by March, 2007.

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International Business - APIs

 Contract manufacturing/ outsourcing

arrangements with MNCs.

Ipca
 DMF filings :

 50 DMFs filed (for 23 APIs)

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International Business - APIs

 APIs development focussed towards non-infringing

processes.

Ipca
 Non-infringing process patents filed for APIs
currently under patent :
Losartan Potassium
Metoprolol Succinate
Clopidogrel – Polymorph 1
Perindopril

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 Ipca
Domestic
Business Strategy

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Domestic Formulations Business

 Therapy-focussed marketing divisions.

 Brand Acquisition. Recently acquired Cardiac
Brand “Isordil” from an MNC for India / Nepal

Ipca
Market.
 Identified product pipeline for next 2 years.
 Undertaking clinical research to introduce novel
combinations / NDDS, and new indication
approval.
 3 clinical trials in progress in India
 3 products CT permission applied

 Open to co-marketing arrangements.

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 Ipca
Research & Development
(APIs & Formulations)

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Research & Development

 Current scientist manpower of over 200.

 Research focus on developing APIs with non-
infringing process and development of finished

Ipca
dosage forms.
 Development of NDDS for domestic market.
 95 patent applications filed.
 5 Patent applications granted (Indian – 4, US
PTO 1)

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Research & Development

R & D Spending

Rs. % to

Ipca
Year USD
Million Mn. Sales
2001 – 02 82.63 1.89 2.06%
2002 – 03 129.80 2.97 2.80%
2003 – 04 248.40 5.71 4.12%
2004 – 05 335.90 7.46 4.97%
2005 – 06 378.60 8.41 5.05%

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 Major Player In Malaria Therapy

 Largest producer of Chloroquine & Amodiaquine.

 40% share of antimalarial market in India .

Ipca
 First company to launch oral Artemether and
Beta-arteether in India.
 Recently launched artesunate-based combination
therapy (ACT) in Nigeria , Kenya, Uganda &
Burundi. Launches planned in Tanzania,
Zimbabwe, Sudan & Rwanda.
 WHO approved plants to manufacture Artesunate
ACTs & other Antimalarials to UNICEF.
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Malaria – Global Scenario
 Malaria remains the world’s most devastating
human parasitic infection, afflicting more than
500 million people and causing from 1.7 million
to 2.5 million deaths each year.

Ipca
(World Health Organisation, 1997)

 Remains a major health and economic burden

in most tropical countries.
 Major cause of death equal with HIV/AIDS and
tuberculosis.
(Drugs 2002:62(9):1315-1329)

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Current Status Of Malaria Therapy

 Spread and intensification of resistance.

 Currently, Artemisinin based combination

Ipca
therapy – the only effective remedy.

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Ipca’s Initiatives in Malaria

 In-licensing agreement with CDRI to further

develop synthetic trioxane as an alternative to
Artemisinin (CDRI compound 97 / 78).

Ipca
Collaboration with CDRI under DST (Department
of Science and Technology) funding for research
in derivatives of Artemisinin having enhanced
activity.

 In-licensing agreement with CIMAP for Artemisia

annua Agri-technology.

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The Way Forward – Up the value chain

Research & Product Manufacturing Marketing

Development
EU
Dossiers/ANDA Formulations Generics - Developed Mkts

Ipca
filings

NDDS APIs Promotional Brands - Exports

Process Research Intermediates Domestic Formulations.

KEY MANAGEMENT FOCUS

• Addition of Internationally
R&D allocation approved plants. Aggressive
being stepped up • New formulation project marketing &
to 5% planned at SEZ Indore for product range
U.S. market. expansion.
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Financials

Particulars 2003-04 2004-05 2005-06

Value % Value % Value %

(Rs. Crs.) Growth (Rs. Crs.) Growth (Rs. Crs.) Growth

Ipca
Total Sales &
622.74 29% 685.45 10% 753.30 10%
Income
PBIDT 128.53 33% 131.49 2% 117.09 -11%

PBIDT % 21% 19% 16%

PBT 108.01 36% 101.55 -6% 78.39 -23%

PBT % 17% 15% 10%

PAT 79.26 28% 80.71 2% 63.98 -21%

PAT % 13% 12% 8%

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Financials

Quarter II 1st Half Ended

Particulars
July'06- Sept'06 Sept'06
Value % Value %

Ipca
(Rs. Crs.) Growth (Rs. Crs.) Growth

Total Sales &

244.48 24% 466.66 16%
Income
PBIDT 58.59 72% 100.27 29%

PBIDT % 24% 21%

PBT 45.54 79% 75.48 25%

PBT % 19% 16%

PAT 35.40 102% 59.74 38%

PAT % 14% 13%

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Distribution of Shareholding (June 06)

Banks/ MFs/FIIs/FIs

Ipca
27.97%

Promoters
51.84%

Others
20.19%

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Ipca
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