Building Blocks

for the Future

Building Blocks

for the Future

A U G U S T 2 0 0 5

A BI-ANNUAL EXTERNAL NEWSLETTER OF RANBAXY

RANBAXY

2

SPECIAL

MOMENTS

FINANCIAL

UPDATE

COVER

STORY

YOUNG

GLOBAL

LEADER

WAR ON

AIDS

HEADWAY

INTO

BRAZIL

CORPORATE

SOCIAL

RESPONSIBILITY

USA-

FORTIFYING

PRESENCE

EUROPE-

BRAND

BUILDING

NEW

PATENT

REGIME

ENVIRONMENT

HEALTH &

SAFETY

R A N B A X Y W O R L D

Managed

Company

India's

Best

“Late Dr Parvinder Singh gave Ranbaxy its

R&D driven global vision, and a

management that executed on it almost

flawlessly.”

On March 11, 2005, amidst a host of corporate

luminaries, Mr Aroon Purie, Editor-in-Chief, Business

Today, released BT's special issue and announced the

names of the ‘Best Managed Companies’ in India. The

result featured Ranbaxy among the thirteen

outstanding performers in corporate India and the six

finalists. Representing Ranbaxy, Dr Brian Tempest,

CEO & MD, received the coveted award from Mr Purie

amidst roaring applause.

This is how Business Today (BT) describes the man

whose visionary zeal put the Company firmly on the fast

track.

“I remember meeting Dr Parvinder Singh

around the same time the $ 1 billion

target was set. The visionary zeal I saw in

his eyes will stay with me forever.”

I N D I A

(As told to Business Today)

Ramesh Adige

Mr Ranjit Shahani, Vice Chairman & Managing Director,Novartis India

From the desk of the

Managing Editor

From the desk of the

Managing Editor

Ranbaxy has made it to the AT Kearney,

Business Today list as one of India's 6 best

managed companies. This recognition re-affirms our

faith in our performance and is one among several sanity

checks that re-assure us that we are progressing well

towards our goal to be a US $ 5 Bn Company by 2012.

In USA, our biggest market, we are focusing on

strengthening our infrastructure to address new

opportunities. In Europe, we are concentrating on

brand building efforts. In other markets we are currently

looking at growth using value-added generics as a

differentiator. Ranbaxy China has opted for a new

business model, the outcome of which will be watched

by the entire industry.

In India, we are well positioned to meet the new product

patent regime and have been at the forefront

recommending its implementation. Our investments in

R&D will stand us in good stead in this regard.

In line with our global ambitions we have been gearing

up our operations by strengthening current business

practices and aligning them with the best global

standards. Our global supply chain initiative is a step in

this direction.

As a responsible Corporate Citizen, Ranbaxy has also

taken definite steps in meeting the healthcare needs of

the communities in geographical areas surrounding its

operations. Ranbaxy has also committed itself to the war

against HIV/AIDS. The Company is moving ahead to file

its entire range of ARV products with the US FDA under

the expedited review process of the US Presidents

Emergency Plan for AIDS Relief (PEPFAR). We have

already received tentative approvals for three products.

In this issue of 'Ranbaxy World' we cover all these

stories at length, besides our regular features.

Through this newsletter we try to keep you abreast

of the happenings around the world at Ranbaxy and

cherish the relationship we have built with our readers

over the years.

Best wishes & regards,

Whole-time Director, Corporate Affairs

& Global Corporate Communications

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Ranbaxy is among India's Best Managed Companies.

Business Today in its exhaustive survey found the Company

to be a consistent performer with R&D focus and a global

vision, setting its own benchmarks for success.

Key Differentiator -

Globalization

Ranbaxy was one of the first

companies to make globalization

the main plank of its strategy. Starting

with generics, Ranbaxy built up a global

marketing network. At the same time

Ranbaxy developed strengths in

Research & Development (R&D). The

major competitive advantage is the low

cost of innovation. Thus Ranbaxy was

able to give back to the international

market the same products they were

used to, at much lower costs. Total

vertical integration gave Ranbaxy the

edge it needed to make a mark in major

markets like the USA.

Best Practice - Innovation

The key driver behind Ranbaxy's

success is innovation and this is

achieved with a similar strategy that

is used to market products - give

people targets and motivate them.

Ranbaxy has time bound targets for

research. It plans to have one New

Chemical Entity (NCE) by 2012 with

several others in various stages of

development. The Company has a

mechanism to reward new ideas.

The research and innovation

advantage that Ranbaxy enjoys today

is the outcome of the vision of

Late Dr Parvinder Singh, Chairman &

Managing Director, Ranbaxy. It was

his dream to make Ranbaxy “A

We present to you a first hand account of the qualities that BT ascribes to Ranbaxy

which have brought it thus far.

BT Recounts Ranbaxy's

Advantage

• Focus on Internationalization

• Major Markets: USA, Europe & BRIC (Brazil, Russia, India, China) countries

• Move from Anti-infective segment to life-style related diseases

• Focus on building privileged assets-brands, distribution channel, patents, etc

• Inorganic growth through acquisitions in the US, Germany and India

• Increased R&D spend

• Increased investment in the proprietary business

From Left to Right: Mr Ramesh Adige, Mr R Venkatesan,

Dr Brian Tempest, Mr Malvinder Mohan Singh & Mr Aroon Purie

R e s e a r c h B a s e d I n t e r n a t i o n a l

Organization”. It was his forward

looking approach which ensured that

Ranbaxy was way ahead of the game in

the Indian pharma industry.

The Company has continued its focus on

internationalization with marketing

efforts in the USA, the UK, Brazil, China,

Germany etc. The Company is now

focused on changing the product mix by

reducing dependence on Anti-infectives

and increasing the share of lifestyle

related chronic disease therapies.

Ranbaxy has a lso focused on

A Planned Future

Team Ranbaxy

cont on page 4...

4

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BUILDING

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SAFETY

R A N B A X Y W O R L D

internationalizing its operations aiming

at building privileged assets-brands,

distribution channels, patents, etc. To

further its growth plans, Ranbaxy has

not only taken the route of inorganic

growth through acquisitions but it has

also enhanced its R&D spend and

increased the level of investments for

proprietary business.

To begin with, 508 companies were short-listed on the basis of their revenue

generation and market capitalization. They were mapped on to AT Kearney's

globally-validated Value Building Growth Model and screened down to 49

companies. The next stage entailed a detailed survey with three perspectives

assessing each company's customer, social and investor perspective. After an in-

depth analysis, including intense interactions with the companies, the number was

further brought down to 13. The penultimate round consisted of exhaustive

interviews with top management to understand their strategy and vision. This

round zeroed in on India's six best managed companies with Ranbaxy featuring

prominently among them. The detailed findings were then forwarded to a

distinguished panel which selected Infosys as the Best Managed Company of India.

The Elimination Process

Mr Malvinder Mohan Singh in conversation with

Mr Ashwin S Dani, Vice Chairman & MD, Asian Paints

The Best Managed Company not just delivers a financial

performance, but also anticipates, changes, learns and stays

ahead of its peers, and has an astute sense of social commitment.

Such a company is a corporate all-rounder.

What makes a best managed company?

The Best Managed Company methodology is a better indicator of

overall performance of a company, since it does not limit itself to

its financial performance, which is a good indicator for the past

performance. This methodology with qualitative analysis provides

a better indicator of how the company will fare in future.

The survey used the globally tested A T Kearney's

proprietary Value Building Growth Matrix, which

has been used to assess the financial performance

of the companies worldwide, analyzing their past

growth movement and future growth potential.

This Story is adapted from Business Today, a leading business magazine of India, March 27, 2005 Issue.

The Panel

Mr Kiran Karnik, President, Nasscom

Mr G Raghuram, Professor, Indian Institute of Management, Ahmedabad

Mr Jairam Ramesh, Rajya Sabha MP & Secretary of All India Congress Committee's Economic Affairs Cell

Mr G N Bajpai, Former Chairman, SEBI

Is the methodology globally tested?

Is the methodology a better

indicator of overall performance?

Ranbaxy SA has also adopted an integrated marketing strategy to address the needs of Funders, Prescribers and Dispensers. The

objective is to build an enviable corporate image of Ranbaxy. As a first step in this direction, the Company, early this year,

organized a week long visit for a high level delegation of 20 top customers from South Africa.

The trip was a part of its pharmacy and managed healthcare KOL program. The tour was an effort at building a personal rapport

with customers and exposing our state-of-the-art manufacturing and R&D units in India.

Mr Ramesh Adige, Whole-time Director, Corporate Affairs & Global Corporate Communications, Ranbaxy, met the delegation in

India and apprized them of Ranbaxy's global operations and R&D. Ms Anneilze Getschmann, CEO, Chronic Care, during her visit

to Dewas, expressed her delight at seeing the Quality standards of manufacturing at Ranbaxy.

Integrated Marketing StrategyS O U T H A F R I C A

...cont from page 3

Five Year Stock Movement - Ranbaxy

March 1,2000

March 1,2001

March 1,2002

March 3,2003

March 1,2004

March 1,2005

511.25 451.53 526.47

631.55

959.45

1,018.10

Figures are BSE closing prices in Rs

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Start

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Providingthe Quality

EdgeSeamless integration of quality processes isn't just

compliance, it's smart business.

Q UA L I T Y

Identitycustomers

Know yourassumptions

The Strategic Planning Cycle

MissionStatement

Vision

ValuesForce field

analysis

Be awareof forces

Alignorganization

to servecustomers

Plan tomeet

Customersneeds

Listen toCustomers

Re-evaluateand renew

Takeactions

Strategicplan ready

Plan toclose gaps

Developaction plans

Developscenarios

Consideralternative

Developquality

objectives

'Quality Culture' globally so that it

pervades the entire organization and

helps us to attain sustained quality

leadership.

The process always begins with the

customers in mind: both external and

internal - what they want and what

trends will impact them in the future.

Accordingly we regularly deliberate

with internal customer departments

l i k e m a r k e t i n g , R & D a n d

manufacturing to understand their

perspective on how best they can

serve our external customers. This

has resulted in the provision of

increasingly better service and

products to customers delivered in

the most profitable manner. This

has also helped in the speedy

resolution of issues and pre-empt

potential ones.

R a n b a x y ' s Q u a l i t y

management system is

based on sound Quality

policies and guidelines

which are implemented

at all manufacturing

sites all over the world.

In Ranbaxy, Quality is

more than a regulatory

requirement, rather, it is

a way of life that covers

the entire gamut of

activities right from

The Strategic Planning

Process - Customer focus

Implementation

op management leads Ranbaxy's Tglobal quality system and the

philosophy is prevention, not detection.

This quality culture is spread across the

organization where everyone is a part of

it. Key benefits from this world class

quality program are customer's

satisfaction, getting it right the first time

and continuous improvement in

products and processes.

Under the leadership of Dr Brian

Tempest, the Quality evolution is

continuing as Ranbaxy integrates quality

into the strategic planning process and

begins operating at entirely new levels.

Also, like in almost any endeavor, quality

is taken as a core value that sets the

expectations for performance across the

company. It has also been recognized

that Quality is a key factor for Ranbaxy to

achieve its mission. Based on the above

principles, Ranbaxy's Quality team has

been on a journey to catapult the

product development, manufacturing,

transportation and complaint handling.

Also, quality aspects always take

precedence in our choice of business

partners like contract / outsourced

manufacturers, vendors and CROs.

Robust selection criteria are followed

while implementing and maintaining a

meaningful and effective quality

engagement with our partners.

Our special initiative on adopting a "Risk

based approach" to all time readiness

for any inspection (ATR) has resulted in

success fu l inspect ions of our

manufacturing sites, from various

regulatory agencies, across the globe.

Designing Future Proof Quality

The future of pharmaceutical quality lies in Process Analytical Technology (PAT).The emphas is here i s on the manufacturing process to amplify the basic principles of the drug quality system: Quality is not a hit and trial process. It cannot be tested into products. It should be built-in or should be there by design. Accordingly,Ranbaxy's PAT policy has been finalized and a core PAT working committee has also been formed.

Earlier this year, the US FDA invited Mr Ranjit Barshikar, VP, Global Quality,Ranbaxy, to visit their PAT laboratory in Washington. Subsequently at a PATseminar in Mumbai, sponsored by ISPE ( I n t e r n a t i o n a l S o c i e t y f o r Pharmaceutical Engineering), Ranbaxy was hailed as the first Indian company to initiate PAT.

6

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MOMENTS

FINANCIAL

UPDATE

COVER

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YOUNG

GLOBAL

LEADER

WAR ON

AIDS

HEADWAY

INTO

BRAZIL

CORPORATE

SOCIAL

RESPONSIBILITY

USA-

FORTIFYING

PRESENCE

EUROPE-

BRAND

BUILDING

NEW

PATENT

REGIME

ENVIRONMENT

HEALTH &

SAFETY

R A N B A X Y W O R L D

“We are witnessing the

emergence of a new era of

boundless human opportunity

built on intellectual capital

and innovation. People will

have multiple options for

growth and development.

Choice not compulsion,

freedom not bondage, equal

opportunity for all are

aspirations that can become

realities. I want to be an

active participant in this

fantastically exciting process

of change and hopefully

impact its direction in a

positive and proactive

manner.”

The World Economic Forum selected Mr Malvinder Mohan

Singh, President, Pharmaceuticals & Executive Director,

Ranbaxy, as one of the Young Global Leaders who will take on

the task to shape a better future of the world.

Mr Malvinder Mohan Singh,

President, Pharmaceuticals &

Executive Director, Ranbaxy laboratories

Limited, is one among 237 leaders

selected to participate in a new major

global undertaking, Young Global

Leaders (YGL), by the World Economic

Forum. These outstanding young

leaders have come together to devote

part of their knowledge and energy over

Ranbaxy's

YoungGlobal

Leader

the next five years to collectively

shape a better future.

The forum is a brainchild of visionary

Professor Klaus Schwab, Executive

Chairman of the World Economic

Forum. It aims to harness a band of

dynamic leaders from different walks

of life, who have the inherent

potential to influence and shape the

world's future. Each year around 200

dynamic Young Global Leaders will

be nominated to serve for a period of

five years, leading to the formation of

a un ique mu l t i - s t akeho lde r

c o m m u n i t y o f o v e r 1 1 0 0

extraordinary young leaders with

international prominence, by the

year 2009.

Drawn from a talent pool of 8000

candidates from 69 different

countries across all continents, the

237 young leaders include political

leaders, leaders in the business

sector, intellectual leaders, societal

leaders, active opinion leaders and

cultural leaders. They have been

selected by a committee of 28

eminent international media leaders,

Chaired by Her Majesty, Queen Rania,

of the Hashemite Kingdom of Jordan,

and compr is ing of eminent

personalities like Ms Marjorie Scardio,

Mr Arthur Sulzberger, Mr Tom Glocer

and Mr Katsuji Ebisawa.

The Young Global Leaders will be

engaged in the 2020 initiative, a

comprehensive effort at addressing

together the complex challenges of

today to shape a better future for our

world. The leaders met for the first time

as a community at their inaugural

summit in Zermatt, Switzerland, on

June 24-28, 2005. They assessed current

a n d f u t u r e t r e n d s , r i s k a n d

opportunities at both regional and

global levels to develop global

strategies and put forward concrete

actions to be taken today in order to

advance towards a better world in the

year 2020.

G L O B A L

Mr Malvinder Mohan Singh, President, Pharmaceuticals & Executive Director, Ranbaxy

Mr Malvinder Mohan Singh spearheads

Ranbaxy's global operations in over forty

countries. Ranbaxy is not only the first

billion-dollar Indian Pharma Company, it

is also among the top ten Generic

Pharma Companies in the world.

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Q

Q

You have just been nominated

as a Young Global Leader and

have come back a f te r

attending your first Annual Meeting.

How do you think this community can

be used to further the World

Economic Forum's mission, which is to

improve the state of the world?

A. The YGL community is a strong

forum for young leaders who are

committed to work towards shaping a

better future for the world in 2020. This

group is keen on synergizing the

collective strengths of its members for

developing a fresh perspective on issues

which affect us globally and delivering

innovative and tangible solutions for the

same.

I feel very strongly for the cause of

making quality healthcare affordable

and accessible to all. For this, I believe

that, our group of YGL should galvanize

Governments, Opinion Leaders and

Industry to effectively collaborate on

developing viable socio-economic

frameworks that will ensure the

availability of affordable, high quality

healthcare for all.

Being a Young Global Leader

you are committed to help to

improve the state of the

world. What are you able to offer,

personally, in this process?

A. I feel privileged to be part of the

Young Global Leader forum. It will be

quite exciting and challenging to shape

the future of the world economy. I would

be representing a successful Pharma

Company as well as an emerging

country, hence I bring to the table a

unique mix of the two different

scenarios. I am confident that our rich

experience in different parts of the world

would be quite useful in preparing the

new business environment that meets

the future challenges and makes this

world a better place to live in.

Q

Q

Some say: Globalization of

economy is out-powering

democracy and state

influence. Is this process a risk or a

chance for future generations?

A. India is the largest Democracy of

the world and by far the most

dynamic as well. With the onset of

liberalization in late 80's, state

regulation is on a decrease. The

current development, by no means, is

a threat or a risk to the future

generation. The new environment is

expected to open new vistas of

opportunities where ultimately

customer will be the king. The pace of

growth will soon match up with the

other advanced economies of the

world. The current transition is a part

of evolution from one stage to the

other.

Where do you see the

Indian pharmaceutical

industry's place in the

world at present?

A. On the generic pharmaceutical

side, India has become a key provider

to the developed markets. This is

based on its strengths and

capabilities to be quick and cost

effective in the development of

products, which is well supported by

highly efficient and low cost

manufacturing.

Most of the leading generic

compan ie s have pos i t i oned

themselves to employ these

s t r e n g t h s o f t h e I n d i a n

pharmaceutical industry.

Ranbaxy has well established sales

and marketing infrastructure in the

leading pharmaceutical markets of

the world. This is fueled by leveraging

our strengths in research and

d e v e l o p m e n t ( R & D ) a n d

manufacturing.

On the proprietary side, India is

emerging as a competitive base for

several segments of the R&D value chain,

especially in late discovery, pre-clinical,

and clinical development. Ranbaxy is

leveraging its own strengths in R&D and

is also engaged in building alliances with

partners with complementary strengths.

R a n b a x y i s a l r e a d y a

multinational Company. Are

the international ambitions of

the Company corresponding with

regional or global influence of the

country itself?

A. Ranbaxy had stepped outside India

way back in late 70's through a Joint

Venture in Nigeria. In early 90's we began

shaping the Company as a true

multinational and today we are

recognized as the first Indian MNC. We

have come a long way since then. Our

robust global operations are spread in

over 40 countries and close to 80% of

our business is generated outside India

with US as our largest market. Having

traversed this path, we certainly have

played a significant role in shaping the

pharma industry in India as well as have

contributed to the government policy

environment.

India has started impacting the world

economy as it continues to gain

momentum in knowledge domain areas

of Information Technology, Software

Development and Pharmaceuticals.

India is fast gaining recognition

worldwide for these areas. With the

advent of new patent regime in the

country early this year, along with

heightened liberalization in investment

regulation, the environment is expected

to get conducive for more FDI which will

certainly boost the country's image

globally. India is also becoming the next

R&D hub for biotech and clinical

research. Ranbaxy is one of the largest

spender on R&D (7% of sales in 2004)

and has one of the largest state-of-the-

art R&D infrastructure in India. Ranbaxy

is cited as a successful model to emulate

and we are happy to play our role in

getting recognition for our country.

Q

We bring to you excerpts from Mr Singh's interviews as a YGL member, at Davos, early this year.

8

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WAR ON

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HEADWAY

INTO

BRAZIL

CORPORATE

SOCIAL

RESPONSIBILITY

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FORTIFYING

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R A N B A X Y W O R L D

UNITED STATES

Fortifyingits Presence

The US is Ranbaxy's largest market. Gearing up to meet future

challenges, Ranbaxy is strengthening its infrastructure in this

huge market.

Building Strength in

Distribution

Ranbaxy Pharmaceuticals Inc. has

moved to a new office in Jacksonville,

Florida. The move has been initiated to

meet the ever increasing demands on

distribution and warehousing. With

close to 100 products approved in the

US there was a growing strain on the

existing capacity.

The new office, built on 22 acres of

land, has an office space of 20,000

square feet and more importantly a

warehouse covering 224,000 square

feet. The office has been constructed

keeping in mind the growth expected in

the years to come.

The move comes at a time when the

Company has 50 ANDA's pending

approval and plans to submit close to

25 new ANDA's in the current year. The

new facility is well prepared to smoothly

handle increased volume and should

improve our operating efficiencies.

QE Cell Inauguration

Ranbaxy launched its Quality

Engineering Cell, augmenting its

newly established R&D lab at its Ohm

Labs, Terminal Road facility in North

Brunswick, New Jersey, US. The

setting up of the QE Cell allows

the running of exhibit batches at

the facility.

Mr Malvinder Mohan Singh (C) along with Mr Pushpinder

Bindra (L) and Mr Lalit Ahluwalia (R) at the inauguration

of the new QE Cell at Ohm Labs

Mr Malvinder Mohan Singh,

P r e s i den t , Pha rmaceu t i c a l s ,

symbolically kicked off the QE cell

operations in the latter part of

2004. Mr Singh congratulated

all those associated with

the setting up of the cell.

The fully equipped new

QE Cell marks the beginning

of an exciting phase for this

facility. It will help to

enhance the current R&D

capability as well as assist

in future expansion.

Business of the Year Award

Ranbaxy Inc and its subsidiary Ohm

Laboratories were awarded the

prestigious Business of the Year Award

by the North Brunswick Chamber of

Commerce (NBCC) at the Second

Annual Awards Reception held in North

Brunswick, New Jersey, USA. The award

is given on the basis of specific criteria

such as business excellence, community

involvement and support to the

Chamber of Commerce activities.

The Chamber lauded Ranbaxy & Ohm

Laboratories for actively participating

and helping to improve the quality of

life within the city. Mr Dipak Chattaraj,

President, Ranbaxy Inc. and Mr Alok

Ghosh, Vice President & General

Manager, Ohm Laboratories, jointly

accepted the award at a ceremony held

in December.

Ranbaxy Pharmaceuticals Inc. (RPI),

received the prestigious Supplier Award

from Wal-Mart, the largest chain store

in the USA , fo r out s tand ing

performance in the first quarter

of 2005.

RPI was commended for consistency of

products provided to Wal-Mart. The

Company excelled in the criteria for the

award, based upon improvement in

a r e a s o f o n - t i m e s h i p p i n g ,

performance, innovative programs and

partnership.

Outstanding Supplier Award

Ranbaxy Pharmaceuticals Inc. Jacksonville Facility, Florida, USA

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It was the event of a lifetime. The occasion was the

dedication of the Clinton Library to National Archivists of the

US government. Ranbaxy was an honored guest at this

momentous event.

The Clinton library is the biggest of

the eleven presidential libraries in

the US national library system, with two

million photographs and 80 million

pages of documents and miscellaneous

electronic records. A futuristic glass

paneled piece of architecture, with

sprawling expanse of over 28 acres over

the banks of the Arkansas river, was built

up at a cost of US $ 165 million and

mainly financed through fund raising

efforts of the William J Clinton

Foundation.

On November 18, 2004, this library was

donated to National Archivists of the

US government, with Ms Chelsea Clinton

handing over

the keys to the

officials. The

dedication of

the sprawling

l i b r a r y a n d

exhibition evoked a "Bridge to the

21st Century" the metaphor linked

with President Bill Clinton, former

President of USA and President,

Clinton Foundation.

The historic dedication ceremony

saw the coming together of some of

the former US Presidents Jimmy

Carter, George H W Bush & Bill

Clinton. The current US President

George Bush was also present for the

occasion.

Ranbaxy was a proud participant in

the momentous event, represented

by Dr Brian Tempest, CEO & MD,

Ranbaxy, Mr Dipak Chattaraj,

President, Ranbaxy Inc., and

Mr Chuck Caprariello, Vice President,

Business Development, Ranbaxy Inc.

Ranbaxy's presence on the occasion

followed its close association with

the William J Clinton Foundation.

Meet for a CauseFormer US President Bill Clinton was on a

two day visit to India, to take stock of the

rising incidence of HIV/AIDS in India.

During his visit President Clinton

attended the National Conference on

HIV/AIDS jointly organized by the

Confederation of Indian Industries (CII)

and National AIDS Control Organization

(NACO) on May 26, 2005.

President Clinton, addressing the meet,

Clinton Library

Dedication

UNITED STATES

L-R: Ms Chelsea Clinton, Dr Brian Tempest & Mr Dipak Chattaraj

Former US President Bill Clinton &

Mr Malvinder M Singh

“Ranbaxy's noteworthy

involvement with the William

J Clinton Foundation is

reflected both in our monetary

contributions to support the

goals and objectives of the

Clinton Foundation that goes

beyond the Presidential Library.

Providing pharmacotherapy to

patients stricken with AIDS in

financially depressed countries

is a common goal that is

shared with Ranbaxy.”

Dr Brian Tempest,

CEO & MD, Ranbaxy

mentioned the need for pediatric

ARVs, so that children born of

infected mothers could be saved. He

a l s o m a d e a s i g n i f i c a n t

announcement that his foundation

would train 150,000 doctors to treat

AIDS in India.

The plenary session was moderated

by Mr Tarun Das, Director, CII.

Mr Malvinder Mohan Singh,

President, Pharmaceuticals &

Executive Director, Ranbaxy, Dr S Y

Quereshi, Additional Secretary,

Ministry of Health and Family Welfare

& Director General, NACO, Mr Ajay

Sriram, Chairman, CII, along with

President Clinton participated in the

session.

"I am deeply concerned with

the growing incidence of

HIV/AIDS. We are committed to

fight this disease by making

quality ARVs available globally

at cost effective prices to

ensure that maximum people

can avail the treatment to live a

better life. A step in this

direction is our current focus on

getting our entire ARV portfolio

approved by the US FDA under

the PEPFAR initiative."

Sharing the common humanitarian

platform, Ranbaxy has been working

closely with the foundation with an

endeavor to make available the cost

effective bio-equivalents of ARVs in the

parts of the world afflicted with

HIV/AIDS epidemic.

Mr Malvinder Mohan Singh,

President, Pharmaceuticals &

Executive Director, Ranbaxy

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Although Ranbaxy is just 4 years old in Brazil, it has already

established a strong foothold in the generics market and is

now gaining ground in the branded products segment.

Home to about 175 Mn people,

Brazil is the fifth largest country in

the world and the largest in Latin

America. The US $ 6 Bn Brazilian pharma

market has tradit ional ly been

dominated by large western pharma

companies. It was only in the late 90s

tha t the gove rnment s ta r ted

encouraging generic drugs in the

country to push down the high cost of

healthcare.

Ranbaxy made its entry into this huge

market in the year 2000 in collaboration

with Schering Plough under the name

Ranbaxy Farmaceutica Limitada (RFL).

Tasting success right from its inception,

Ranbaxy is today the fifth largest

generic company operating in Brazil,

with a market share of 7.5%. (IMS)

One of the main factors for the

success is the strong product

portfolio. Ranbaxy has more than

100 products registered with

ANVISA, the regulatory body of Brazil

and 10 of these are in the branded

segment. Leveraging its portfolio,

Ranbaxy has been able to generate

excellent market penetration. With

strengths in the Cardiovascular

System (CVS), Central Nervous

System (CNS) and Anti-infective

segments. Simvastatin (IMS MAT

Dec'04) is the largest product

followed closely by Co-Amoxiclav

and Lovastatin. With the launch of 10

new generic products, RFL has

further enhanced its generic status.

These products include potential

blockbusters l ike Fexofenadine,

Atenolol and Cinnarizine.

In line with Ranbaxy's objective to have

a substantial part of global business

from proprietary products by 2012, a

special task force has been set up to

generate prescriptions from doctors

under the Ranbaxy banner. Urology and

Dermatology will be the therapeutic

categories in focus. The biggest product

i n t h i s s e g m e n t i s C e c n o i n

(Isotretinoin). The launch of a gel form,

last year, further strengthened the

brand. During the year, Contiflo OD

(Tamsulosin) and Altiva (Fexofenadine)

were launched. These brands will add

strength to the Company's portfolio

with Urologists and Dermatologists.

With a number of other brands in the

fray, brand building is well underway in

Brazil.

Strategic tie-ups have helped Ranbaxy

widen its product offerings, by in-

l i c e n s i n g a g r e e m e n t s w i t h

manufacturers. At the same time

Ranbaxy is also out-licensing the

products to other generic players in

Brazil. These tie-ups have helped

optimize the product mix and the

revenues for the Company.

Hospital segment is another core area of

RFL's growing strength, with its key

contributions being Amoxicillin and

Cephalexin. Other segments attracting

f o c u s i n c l u d e U r o l o g y a n d

Dermatology. The basic strategy is to

have differentiated products as well as

exclusive generics. In a short span of

f o u r y e a r s , R F L h a s g r o w n

phenomenally with IMS ranking it at

No. 42 in Brazil on MAT basis. The

Company's operations in the Latin

America region, including countries like

Peru, Mexico, Venezuela and Brazil,

accounts for around US $ 50 million.

Owing to the rapid success in the area

and looking at growth plans for the

future, the Company is establishing a

state-of-the-art manufacturing unit in

Brazil, which will be ready by the year

2006. With this latest manufacturing

unit outside India, Ranbaxy plans to dig

its roots deeper, and make its Latin

America operations self sufficient.

Making Headway into

Sambaland

B R A Z I L

Ranbaxy in Brazil was conferred with 'Frost & Sullivan Entrepreneurial Company of the Year Award' for 2004 in June 2005, following a Strategic Analysis of the Brazilian Pharmaceuticals Markets conducted by Frost and Sullivan. The Award was bestowed on the Company in recognition of its rapid rise to the top of the Brazilian generic drugs market despite its relatively recent entry into the country in the year 2000.

In the words of Mr Barath Shankar, Frost & Sullivan Research Analyst, "Despite being a foreign Company, Ranbaxy successfully joined the ranks of the top five generic Companies in Brazil within a short span of four years. Today, Ranbaxy is the fifth-largest Company in the generic drugs segment, and the first among foreign companies, with a market share of about 5 per cent in terms of sales. Ranbaxy has been able to reach this position by adopting a robust strategy of introducing a large number of generic products focused mainly on the CVS and CNS therapy areas. In Brazil, Ranbaxy has a number of exclusive generic products. Ranbaxy also has a growing portfolio of branded products. These entrepreneurial initiatives are likely to continue in the future."

With a large number of drugs in the pipeline and a projected increase in market share, Ranbaxy is set to continue growing in the Brazilian generic drugs market.

Every year, Frost & Sullivan presents this Award to the company whose outstanding entrepreneurial initiatives, combined with its sound marketing strategy, have propelled it to the forefront of its particular industry.

Entrepreneurial Company of the Year

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Ranbaxy (Guangzhou China) Limited

(RGCL) has become the first

international Company in China to

outsource its entire sales team. The

switch-over was decided after an in-

depth analysis of the model and careful

weighing of its strengths and

weaknesses.

Analysis revealed that the domestic

manufacturers were growing at a much

faster pace compared to multinational

companies because they were

increasingly relying on outsourced

teams. The move had been prompted by

rapid changes in the environment in

terms of price cuts on core brands.

Ranbaxy decided to adopt the model

after seeing the success it was

Strengths of the Model

Learning from the prevailing ground realities in the local

market, RGCL has adopted a new business model in China,

outsourcing its entire sales team. The new model allows

RGCL to focus on its core strengths of medico marketing and

business development.

• Offers flexibility in sales policies across regions

• Provides speed to penetrate new geographies

• Increases sales productivity in existing geographies

• Provides opportunities to commercialize multiple

brands across therapeutic segments

• Reduces the fixed cost component of sales

• Allows RGCL to focus on core strengths of medico-

marketing and business development

• Provides opportunity to the local outsourced teams

to employ local relationships to the fullest

A New Business

Model

C H I N A

generating for the domestic

manufacturers.

The switch-over was a massive

exercise involving the recalibration of

Ranbaxy's entire sales, supply chain,

distribution and marketing set up.

The new business model makes it

even more vital for the Company to

be in touch with the market in order

to maintain the service quality at the

doctor level as well as with the

channel partners.

To ensure the smooth functioning of

the model as well as to accelerate the

marketing endeavor, Business

Development Managers have been

deployed across China. This should

strengthen Ranbaxy's relations with the

sales agencies and ensure improved

customer service. A China specific

newsletter has been launched to keep all

partners updated of the various

initiatives being undertaken in different

parts of China.

RGCL is marching ahead with its

inherently progressive outlook. It has

already expanded its customer base in

China, enhancing geographical

coverage of products. With its diverse

product range in different therapeutic

segments and consistent introduction

of new products in the country, RGCL is

one of the top performing pharma

Companies in the highly competitive

Chinese market.

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Romania on a High

Ranbaxy in Romania has been doing

well with the Company's sales

growing consistently from US $ 0.33 Mn

in 2000 to US $ 6.4 Mn in 2004.

Today Ranbaxy can boast of 3 branded

generics (Simvor, Zanocin & Zanocin-

OD and Cifran) and two generics

(Enalapril and Cefaclor), featuring in the

top three in their respective segments.

Zanocin and Zanocin OD constitute the

no 1 quinolone in Romania.

Ranbaxy has high expectations from

these products as also from the new

The European market is seeing Ranbaxy build its strengths

while moving up the value chain from high quality generics

to branded generics.

E U R O P E & A F R I C A

arrivals. Revital Appetit is an

innovative product that has been

launched in the Romanian market.

The product is a natural herbal tonic

to enhance appetite in children.

Adding to its brand offerings,

Ranbaxy recently entered into a tie-

u p w i t h J B C h e m i c a l s &

Pharmaceuticals Ltd, India, wherein

the Company will market JBCPL's key

herbal range brand, Doktor Mom, in

the Romanian market. The Doktor

Mom herbal range includes syrup,

lozenges and rub variants for the

cough and cold segment.

Portfolio Build-up in South

Africa

Ranbaxy South Africa has made

significant inroads into the local generic

market, coming a long way from focusing

on the government sector.

Stepping into the private market in 2001,

the Company identified product portfolio

realignment, sales force restructuring,

strategic alliances and establishment of

good business practices as the focus

areas.

AddingValue

Innovationthrough

Ranbaxy (UK) Ltd has established a clear

therapy class focus in the treatment of

COPD (Chronic Obstructive Pulmonary

Disease), Asthma and Respiratory tract

infections. The move has been

prompted by the importance of this

d i sease segment in UK, wi th

approximately 5 million people

suffering from Asthma alone.

After the success of Visc la i r

(Mecysteine), a mucolytic for the

treatment of COPD, launched in March

2004, Ranbaxy recently launched

Easyhaler, a new device for the

treatment of Asthma. A compact and

modern, easy to use, dry powder

inhaler, Easyhaler has an added

cont. on page 13...

advantage of protective cover and

metered dose counter.

The clinical trials have shown hearty

response from patients, which

promises success for the device. With

the license approval for Easyhaler

Budesonide imminent, and the

potential for two other molecules in

the device, Ranbaxy is on its way to

become a key contributor to the

treatment of Asthma during the next

three years.

Completing the respiratory focus is

Distaclor MR (Cefaclor), a remedy for

Upper Respiratory tract Infections.

Distaclor MR provides marked

Building a Brand Franchise in UK

"We welcome the opportunity to

join hands with JBCPL towards

creating a productive

relationship that will leverage

each others capabilities. The

agreement reinforces our

strategy to utilize licensing

opportunities to further our

growth in the overseas markets."

Mr Malvinder Mohan Singh,

President, Pharmaceuticals &

Executive Director, Ranbaxy

advantages over traditionally used

Co-Amoxyclav and Clarithromycin and

is likely to make a huge dent in the

£ 213 Mn antibiotic market in the

segment.

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“Our collaboration with

EFARMES, SA will fortify our

presence in Spain and augment

our existing product portfolio,

enabling us to meet the

growing needs of patients in

this part of the world.”

FT Global Pharmaceutical

Conference - UK

Ranbaxy was the only Indian Company to

have attended the Financial Times (FT)

Global Pharma Conference held at

London in UK, in 2004. The conference

emerged as the fountainhead of issues

concern ing g loba l hea l th and

pharmaceutical industry meeting the

compounding challenges. Attended by a

host of distinguished personalities,

including senior scientists and senior

management from leading pharma

companies like GSK, Roche, Merck, et al.

Dr Brian Tempest, CEO & MD, Ranbaxy,

speaking on the occasion presented

facts on the global trend of increasing

cost of health, its ramifications on

individuals, corporates and big generic

pharma companies. He emphasized on

the synergistic linkages between

escalating costs of health and high cost

of innovating generics. Dr Tempest

presented an analysis of advantages

presented by generics via-a-vis branded

pharmaceuticals in the global markets

and the competitive advantages of the

New Asian countries specially India

and China. He emphasized on the

role played by India in creating a

global niche for itself in the Pharma

and R&D business for the future.

The two day conference dwelt on

multifarious topics riveting on issues

of concern like pricing, risks,

reputation, role of regulators in

expanding the creation of innovative

drugs, strategizing new business

models leading to growth and

quality generation. The enlightening

conference was full of ideas leading

to simplifying the complex market

make up in favor of the people at

large, globally.

Ranbaxy attended the 2005 Health

Care Conference, organized by Banc

of America Securities LLC, at Las

Vegas, USA, to brainstorm corporate

strategy with a targeted high quality

investor group.

The conference saw the attendance of

leading healthcare company CEOs,

Health Care Conference -

USA

top institutional portfolio managers and

buy-side analysts. Attending companies

made a 10 minute presentation followed

by a moderated Q & A session among the

companies' management teams,

institutional investors and Research

analysts, which was also webcast live

over the internet.

Ranbaxy's presentation, made by Dr Brian

Tempest, was amongst the top two

presentations to have generated

maximum interest with the audience.

...cont. from page 12

2003 saw the product portfolio being

strengthened with the Company entering

the Cardiovascular and CNS segments.

Ceroxim (Cefuroxime axetil) was the major

launch, which was followed by a host of

new products.

Within a year, the Company launched nine

more products, including first to be

marketed generic brands, Cepodem

(Cefpodoxime Proxetil) and Serlife

(Setraline). The product portfolio in the

CVS segment was reinforced with the

launch of Simvotin (Simvastatin) in 2004.

Today the Company is ranked first in

oral cephalosporins. Ceroxim, Cifran

and Ranclav are ranked No. 1 in

their respective segments while Serlife

and Cepodem take up the number

two slots.

Having recently set up a subsidiary in

Spain, Ranbaxy formally launched its

operations in September, 2004. The

event was extensively covered in the

media symbolizing Ranbaxy’s growing

presence in Europe as a formidable

generic pharma Company.

With a spirited team of 45

professionals, the Company’s generic

products are widely distributed in the

Spanish market. Ciprofloxacin,

Ofloxacin and Lisinopril are the main

products.

Providing a major impetus to its

Taking Spain by Storm

product portfolio, Ranbaxy acquired

a generic portfolio of eighteen

products belonging to the Spanish

pharmaceutical company EFARMES, S A

Unipersonal, for sale in Spanish market,

in early 2005.

Ranbaxy at International Conferences

Mr Peter Burema,Regional Director,Europe, CIS & Africa, Ranbaxy

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Dr Brian W Tempest,CEO & Managing Director,Ranbaxy

"We are pleased and proud of

our achievement in being

granted US FDA tentative

approvals for Lamivudine,

Nevirapine and Zidovudine.

These formulations now

qualify to be included among

a portfolio of drugs associated

with the PEPFAR initiative. We

will continue to add products

to this program to help

patients afflicted with

HIV/AIDS. The Ranbaxy global

organization is committed and

dedicated to this

humanitarian effort."

HIV/AIDS is among the gravest

issues cornering the world today.

With over forty million people infected

with HIV and its expected escalation to

over fifty million by the end of 2012, the

situation has become a cause for great

concern. Currently, an estimated six

million People Living with HIV/AIDS

With AIDS acquiring serious proportions and large

populations needing medication, Ranbaxy has not only taken

up the mantle to provide affordable medicines, but is also

fighting time pressures to get approvals for ARVs with WHO

as well as US FDA.

(PLHAs) in developing countries

require Anti-Retroviral Therapy (ART).

Further most countries having high

incidence of HIV/AIDS, lack adequate

health care infrastructure. The

situation was further compounded

by the lack of affordable treatment.

The need of the hour is to make Anti-

Retrovirals (ARVs), available to all

patients across the world at a

minimum cost.

With a view to make bio-equivalent,

high quality generic ARVs available to

PLHAs at affordable prices, Ranbaxy

has stepped up its filings with the

US FDA and WHO. Ranbaxy was the

first Indian Company to file for the

generic ARVs with the US FDA under

the expedited review process of the

US Presidents Emergency Plan for

AIDS Relief (PEPFAR).

Recently the Company received

tentative approvals for Lamivudine

150 mg tablets, Nevirapine 200 mg

tablets and Zidovudine 300 mg

tablets, from the US FDA under the

PEPFAR program. Several other

filings are awaiting approvals.

Apart from the US FDA, Ranbaxy has

also made 11 filings, five of which are

for fixed dose combinations, with the

World Health Organization for its

approval under the latter's pre-

qualification project for HIV/AIDS drugs.

All these filings have been made in the

last 7-8 months with an effort to speed

up the process of filings. The Company

is expected to file for its complete range

during the year.

Ranbaxy received the prestigious Frost &

Sullivan Award 2004 for Customer

Value in recognition for its sustained

and consistent efforts, to bring about

an easy access for Anti-retrovirals to

millions of people suffering from

HIV/AIDS in the developing countries at

affordable prices. The Company's offer

of 'less than a dollar a day' HAART (High

Active Anti-Retroviral Regimen) therapy

has been found to be the most

economical in the world as per a price

survey done by Médecins Sans

Frontières.

Frost & Sullivan Award

G L O B A L

On aMission

AIDSto Fight

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Research & Development

Ranbaxy is engaged in adding strength to its NDDR program

through the collaborative research model. RBx 11160, the new

synthetic artemisinin based Anti-malarial drug, is currently

undergoing phase II proof-of-concept studies. This drug is being

developed in collaboration with Medicines for Malaria Venture.

Other important development programs are underway.

Towards Eradicating Malaria

Ranbaxy has joined hands with

Medicines for Malaria Venture

(MMV) to develop a life saving Synthetic

Peroxide Anti-malarial Drug. MMV is a

non profit Swiss Foundation dedicated

to the eradication of this disease from

the developing countries.

The move is aimed at trying to bring an

end to malaria which has virtually been

eradicated in the developed countries

but can be devastating in the developing

nations. Malaria related morbidity and

mortality is rising as a consequence of

growing resistance to existing drugs.

Artemisinin (qinghaosa) derived from

the Chinese herb Artemisinin annua,

though poorly soluble in oils or water,

h a s p o t e n t a n d r a p i d b l o o d

schizonticidal activity and is the most

effective Anti-malarial drug known.

However, its short shelf life, cost and

need to be extracted from herbs, besides

preclinical neurotoxicity, indicate that

better molecules are required if we are to

overcome malaria.

Therefore, in collaboration with MMV,

Ranbaxy has developed RBx 11160. The

current research is being carried out at

Ranbaxy laboratories by Ranbaxy

scientists. RBx 11160 is a synthetic

trioxalane Anti-malarial molecule,

which acts rapidly and kills malarial

parasites that are resistant to other

drugs. The drug has high intrinsic

effectiveness, which reduces the

probability of development of its

resistance. However, owing to its

short half life it needs to be combined

with another molecule with a

prolonged half life. The work in this

direction is currently underway.

The Company has received clearance

for its Investigation New Drug

application from Drug Controller

General of India (DCGI). Phase I

studies are complete and RBx 11160

is undergoing phase II proof-of-

concept studies.

Enhancing NDDR Capabilities

Ranbaxy entered into a strategic

tripartite collaboration with National

Chemical Laboratories (NCL), Pune and

Department of Science & Technology

(DST), Govt of India, New Delhi, in April

this year for collaborative research. The

focus of the program is to synthesize

novel Anti-infective drugs. Ranbaxy will

screen these molecules and identify

promising candidates for further

development. A joint research

committee has already been formed to

guide and monitor the research

program.

The agreement entails joint funding of

NCL by Ranbaxy and DST under the aegis

of the Pharmaceutical Research and

Development Fund (PRDF). PRDF was

introduced by DST in mid nineties to

promote inter-alia collaborative R&D in

the Drugs and Pharmaceutical Sector in

India.

“Our collaboration will help

in mobilizing India's existing

strengths in the private and

public sectors to create an

enabling framework for

world class scientific research

and new drug development.”

Dr Brian Tempest,

CEO & Managing Director,

Ranbaxy

JoiningHandsin

Development

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As a responsible corporate citizen

Ranbaxy has always appreciated

the importance of the soc ia l

development in its environment. It is a

part of Ranbaxy's 'Values in Action'.

Ranbaxy created the Ranbaxy

Community Healthcare Society (RCHS)

in 1994 to improve the primary health

of the population in the underprivileged

sections of society. Starting with a small

group, today the society covers 95

villages and a population of almost 2

lakh people.

The RCHS team of doctors and

paramedics operate through mobile

healthcare vans. On a weekly basis they

also hold clinics in different villages.

Focusing on providing information

rather than only distributing medicines,

the team has been successful in

mobilizing local support for their

activities.

Corporate Social Responsibility forms an integral part of

Ranbaxy's business strategy. There has been an ongoing,

conscious effort to give back to society, for the past several

years.

A d d r e s s i n g o n a r e a s o f

immunization, vitamin deficiency,

malnourishment among children and

maternity health, RCHS undertakes

preventive, promotive and curative

checks. Under its care, infant

mortality rates and maternal

mortality have reduced considerably.

It also implemented several projects

on reproductive child health and

family welfare, specifically in the low

attention areas of Madhya Pradesh,

Himachal Pradesh, Punjab and Delhi.

RCHS is an active participant in all

major national health campaigns like

National Pulse Polio Immunization

drive. It holds rallies and administers

polio doses to the children in and

around the Company's facilities. It

also organizes awareness campaigns

on safe motherhood, nutrition,

breast-feeding and on population

control education programs in

conjunction with several NGOs and

local administration.

During the year, the Company carried

out several other welfare initiatives

around its facilities in Mohali & Toansa

in Punjab; Paonta Sahib in Himachal

Pradesh and Dewas in Madhya Pradesh.

In these regions drinking water scarcity

was a major issue. Ranbaxy, therefore,

initiated special drinking water projects

in these villages to put an end to a long

standing problem.

Ranbaxy has operated with a clear focus

on giving back to the country and the

society it is working in. In this regard the

Company has been making significant

contributions to bring about a

noticeable difference to the lives of the

disadvantaged. Driving itself as a

responsible corporate citizen, its

endeavors in this direction are making a

difference.

Adhering to its firm commitment to ethical business conduct and corporate social

responsibility, Ranbaxy voluntarily discontinued its generic composition of an

Arthritis drug, Valdecoxib, following US FDA's cautionary views on innovator

Pfizer's brand, Bextra, in the US.

The US FDA expressed its view that the overall risk versus benefit profile of the drug

was unfavorable. Ranbaxy was the first to launch this drug in India and also the first

to discontinue it from the market, without waiting for any formal directions from

the government in this regard. The Company's prompt action was in line with its

philosophy of being a responsible corporate citizen.

On High Ethical Note

V A L U E S

CorporateSocial

Responsibility"Corporate Social

Responsibility (CSR) is an

integral part of Ranbaxy's

business strategy. The

Company does not view its

success and achievements in

terms of commercial gains

only, but firmly believes that

CSR is the key towards

enhancing the deep symbiotic

relationship that exists

between the Company and the

environment it works in."

Mr Ramesh Adige, Whole-time Director, Corporate Affairs & Global Corporate Communications

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Ranbaxy is committed to building an

organization culture based on

values. Its quest for growth and

excellence goes hand in hand with

unflinching commitment to integrity in

all relationships with employees,

customers, suppliers, government, local

communities, collaborators and

shareholders. With this objective the

Ranbaxy Code of Conduct was

introduced recently by Dr Brian Tempest,

CEO and Managing Director, Ranbaxy.

Code of Conduct is one of the

imperatives for corporate governance. It

affirms the Company's commitment to

conduct business with integrity and

uphold the highest ethical standards,

while remaining competitive in the

marketplace.

The Ranbaxy Code of Conduct aims at

p romot ing bet te r governance ,

transparency and improvement in risk

management. The code was developed

following extensive research of similar

documents in global ly reputed

companies. The subject was discussed

threadbare at several brainstorming

sessions within focus groups before final

val idation by the management

committee of the board.

The document is a comprehensive

compendium of ethical codes, which will

Definingthe

Code of

Conduct

BUSINESS ETHICS

At its core, the Ranbaxy culture is predominantly based on its

values. The Company took a step in formalizing this culture by

launching the 'Code of Conduct' to ensure a uniform response to

issues of ethics & value system across the globe.

guide Ranbaxy corporate practices. It

lays down specific guidelines for all

employees in various operational

areas. These include business ethics,

employment po l i c i e s , equa l

employment opportunities, sexual

harassment, health, safety &

environment. The Code also seeks to

prevent fraud and prescribes a due

redressal mechanism. To ensure that

the Code is followed in letter and

spirit, the Company has established a

Code Compliance Cell. The Cell

ensures that the Code is respected

and appropriate action is taken to

address violations, if any. The Code

Compliance Cell is proposed to

operate at three levels v iz.

regional/country/plant to ensure

complete compliance. It is the

responsibility of each Manager to

ensure that the code is adhered to.

Producing a written 'Code of

Conduct' is not enough in itself. The

Code must be communicated,

understood and accepted by all

employees of the Company. Hence a

global roll out of the Code was

planned by Ranbaxy HR earlier during

the year. A team of trainers from

different parts of the globe were

trained for this purpose. The

program included interactions, case

studies and role plays to ensure

corporate understanding of the process.

The introduction of the Ranbaxy Code of

Conduct is another milestone in our

march towards making Ranbaxy a value-

based ethical organization.

“For the first time we

have tried to capture the

Ranbaxy Code of Conduct

in one document. We

hope this will be useful to

all employees and give

guidance on many of

these sensitive issues as

well as will encourage an

atmosphere of trust,

transparency and

courage.”

Dr Brian W Tempest,

CEO & Managing Director,

Ranbaxy

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Views From Ranbaxy

Earlier during the year the Indian

Parliament amended the Indian

Patent Act of 1970 and passed the

Patents (3rd Amendment) Act, 2005.

The amendment was necessary to bring

Indian Patent Laws in line with our

obligation to the Trade Related

Intellectual Property Rights (TRIPS)

under WTO. This will usher in an era of

new opportunities. However, this

development has brought in a new

paradigm which will require a

considerable change of mindset.

The earlier Patent Act had already

provided process patents in all areas of

technology including pharmaceuticals,

but with the new patent regime

comprehensive product patents come

in force. The new Patent Act explains the

scope of patentability. The Act defines

'Inventive Step' as a feature of an

invention that involved technical

advance as compared to the existing

knowledge or having economic

significance or both. According to it

'Pharmaceutical Substances' mean any

new entity involving one or more

inventive steps.

According to the Act mere discovery of a

new form of a known substance that

does not result in the increase of the

known efficacy of that substance, will

not entitle it to patentability. The

der ivat ives of substances l ike

polymorphs, metabolites, isomers, etc

will be considered to be the same

substance, unless their inherent

Q: What does the change in the

patent regime mean for Indian

pharma companies & Ranbaxy?

Q: What are the new business

models that are emerging in the new

scenario?

A: The Product Patent regime is now a

reality. All the presumed threats are

unfounded for the companies that are

driven by a research focus and

Intellectual Property (IP) awareness.

For Ranbaxy the regime spells an

opportunity. During the non-Patent

period, product differentiation was

difficult and customer service was the

only differentiator. However, in recent

years our New Drug Delivery System

(NDDS) platform technologies and

value added products, have given us an

edge in the market with superior patent

benefits. In the coming years we will

depend upon our R&D and our tie-ups

with research based companies for

Intel lectual Property protected

products.

A: Top end companies with a strong

R&D focus will be able to discover

medicines more cost effectively vis-à-vis

their counterparts in developed markets.

A stronger Patent regime will attract

opportunities in every area: discovery,

process R&D, custom synthesis &

contract manufacturing and clinical

research. There will be a need for

increased spend on R&D and regulatory

systems. The country will have to build a

strong image as a low cost, high quality

provider of pharmaceuticals and

establish itself as a leading clinical

research hub, create centers of

excellence with world-class standards for

GCP & GLP and establish itself as a

preferred destination for development

of research based drugs. There will be a

need to exploit synergies between

pharma, biotech and IT and the

untapped traditional knowledge

systems existing in our country.

With the advent of the new product patent regime for drugs,

India joins the countries following globally compliant

intellectual property norms. The regime provides an

incentive for organizations to be innovative and promises a

plethora of opportunities for forward thinking organizations

that believe in research & development.

properties are significantly altered

with regards to efficacy. The Product

Patent system will not affect the

pharmaceutical companies that have

a strong R&D base. Companies like

Ranbaxy with world class R&D

capabilities will remain strong and

thrive.

The Act will not affect the majority

of drugs already available in the

market, at least for a while. Drug

pricing will continue to be market

driven. In India, all major therapeutic

areas have multiple drug choices

and so any new drug cannot

command a premium just because it

has a patent. Amendments to the Act

have brought Indian Patent Law on

similar footing with that of European

Patent Convention.

If affordability or availability

becomes an issue, several provisions

are present in the Act to handle

them. Compulsory l i cens ing

provisions are there to check the

abuse or misuse of any patent.

Companies owning a patent in India

are required to manufacture the

inventions as claimed under the

patent within three years of its grant.

In case of public health crises, like in

the case of HIV/AIDS, TB, malaria and

other epidemics, the government can

declare emergency provisions and

regulate them according to the

nation's benefit.

Mr Ramesh Adige

Whole-time Director,

Corporate Affairs & Global Corporate

Communications, Ranbaxy.

P O L I C Y

Opportunities

New Patent Regime:New

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In the highly competitive space of

generic pharmaceuticals, efficiency is

the key to survival. Efficiency in reaching

out to the customers across the globe

within the stipulated time frame is a

challenge in itself. Ranbaxy, with its

extending horizon, has taken up this

challenge head on. The Company has

embarked on globalizing its supply chain

in line with the best institutional

practices of the industry.

The Company launched a special project

called SPECTRUM (Supply Chain

Planning for Enhancing Customer

Service to Ranbaxy's Universal Markets)

in 2003 with a clear objective to,

'Transform the Supply Chain to

substantially improve customer service

levels whilst maintaining optimal levels'.

Over the last 26 months significant

ground has been covered in terms of

implementing processes in different

plants and markets across the globe. This

effort has been ably supported by

deploying the APO (Advanced Planner

Opt imizer ) too l . Fo l lowing i t s

implementation, the supply chain has

been converted into a seamlessly

integrated end-to-end function, starting

from forecasting demand to meeting

demand, in the most efficient way. The

tool helps manage each function

separately from demand planning,

supply planning, procurement of input

materials to logistics.

Thousands of Ranbaxy customers from

more than 104 countries are served

more than 4000 SKUs (Stock Keeping

Units), manufactured either at Ranbaxy's

Planning & Implementation

Customer is the King

Ranbaxy's global supply chain is in line with the Company's

2012 global vision which augments its commitment to meet

customer's demands in the earnest.

manufacturing facilities spread

across the globe, or at various other

outsourced locations including

sourcing from several Principal to

Principal (P2P) vendors. Using

thousands of input materials from a

large number of vendors makes

Global Supply Chain (GSC) function

that much more complex.

In line with global best practices the

supply chain at Ranbaxy has evolved

a seamless planning process, which

starts from forecasting demand for

each market and ends with the

delivery of goods to the customer in

full and at the required time. This

process driven approach has helped

in substantially improving service to

the end customer.

Ranbaxy provides services as per

customer needs by bringing in many

new products each year. During

2004, over 700 SKUs were launched.

A large number of products are filed

in various countries every year. Our

Global Supply Chain ensures that

these products are manufactured

well in time and reach the market on the

day of the launch. GSC works relentlessly

to ensure day one launches of the

generic formulations in advanced

markets like USA & Europe.

The well defined KPIs (Key Performance

Indicators) for each aspect of supply

chain and periodic review of these KPIs

by the company's management, ensures

that there is improvement, month on

month, and processes are strictly

adhered to.

The Global Supply Chain is supported by

SAP, which acts as the digital backbone

of the chain providing on line

information to the customers and the

organization. In order to help service

dynamic market requi rements ,

technology is leveraged to ensure that

vendors get to know about the changes

online and can track the movement of

their consignments till the time they are

received by them.

To enhance Global Supply Chain

capability RFID (Radio Frequency

Identification) technology was initiated

in 2003. RFID is an advanced bar coding

sys tem and t racks the s tocks

a u t o m a t i c a l l y. T h i s w a s f i r s t

implemented in the US in 2004 and soon

will reach out to other markets.

The GSC team is geared up to take on the

challenge of converting our Global

Supply Chain into a source of

competitive advantage for the company

while providing enhanced quality service

to customers.

Making Way Ahead

Supply Chain Planning Process

Generation of base forecast

Review andconsolidation at country level

Business Review

Final Sales Forecast

DF Distributionrequirementsaggregation &

Allocation to plants

Distribution Requirements Planing

RegionalSupply Planning

CountrySpecific Supply

Planing

Global Sales&

OperationsPlanning

Regional S&OPMeeting

DF Rough CutCapacity Planning

(RCCP)

API RequirementsAggregation

API PlantAllocation/RCCP

Pre S&OP SupplyAlignment (DF &

API)

API Requirements forDirect Sales

G L O B A L

Global

SupplyChain

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Environment, Health & Safety ( EHS)

are of prime concern at Ranbaxy.

The Company is fully committed to

protecting the environment and

ensuring the health and safety of its

employees, customers and the public.

This commitment is reflected in its

stated core corporate values and the

Comprehensive EHS policy that has

been in place since 1993.

As a responsible Corporate Citizen,

Ranbaxy firmly believes in the

sustainability of the environmental

performance beyond compliance

to statutory requirements. The belief is

rooted in the premise that societal

expectations and needs in the new

millennium demand a major elevation

in corporate contribution to urgent

g l o b a l i m p e r a t i v e s i n w h i c h

environment, health and safety are the

biggest issues.

The Company's EHS policy provides for

the creation of a safe and healthy

workplace and a clean environment for

employees and the community. It aims

at higher international standards

in plant design, equipment selection,

maintenance and operations. The policy

seeks to manufacture products safely

and in an environmentally responsible

manner. Under this policy the

Company assoc iates wi th the

concerned authorities and industry

in dev i s ing respons ib le laws ,

regulations and standards and thus

makes safety, occupational health &

environmental information and

expertise available to its employees and

the community at large. Ranbaxy has

made EHS concern and practice a

necessary factor in appraising its

employee performance.

At Ranbaxy a comprehensive EHS policy is in place since 1993

addressing environmental stewardship, safe practices,

training and performance.

E H S

Safer A Healthier &

Environment

EHS Management System

The

Continuous

Improvement

Cycle

EHS Management System

Review

Corporate

Standards

Corporate

Guidelines

Local

ProceduresTraining &

Implemen-

tation

Measure

AuditPerformance

Reports

Annual

Report The

Continuous

Improvement

Cycle

EHS

Policy

EHS Adherence

Managing Chemical Wastes

Ranbaxy's manufacturing facilities

for bulk drugs and dosage forms

c o m p l y w i t h t h e s t r i n g e n t

r e q u i r e m e n t s f o r G o o d

Manufacturing Practices (GMP) and

Good Laboratories Practices (GLP).

These locations are approved by

international health and regulatory

agencies like the US FDA, the TGA

Australia, the MHRA UK, the WHO

and others. These practices ensure

the manufacture of high-quality

products, the effective use of

resources and reduction in wastes.

Ranbaxy is fully aware of the

importance of ground-water

protection in terms of both

availability and quality. Continuous

efforts are made to reduce the

d e t r i m e n t a l e n v i r o n m e n t a l

footprints by init iat ives l ike

wastewater reduction and resource

conservation. Utmost care is taken

while designing the manufacturing

facilities to ensure total containment

of the chemicals handled.

To minimize the chemical discharge

to the environment, Ranbaxy

has invested in effluent

treatment plant using the

latest reverse osmosis

m e m b r a n e b a s e d

technology, integrating it

with the mult i -ef fect

thermal evaporation system

a n d s t a t e - o f - t h e - a r t

incinerator. Simultaneously,

steps are taken to reduce

waste at the source. The

Toansa plant is the first to

have this integrated system which has

led to it achieving the status of 'Zero

liquid effluent discharge site'. All

Ranbaxy plants comply with the water,

air pollution and hazardous waste Acts.

To ensure a global safety standard,

process hazards ana lys i s and

electrostatic hazard studies were

conducted by international experts like

DuPont and Chilworth. High priority

safety at Ranbaxy has led to consistent

upgradation of its manufacturing units.

Based on the DuPont Audit findings a

number of actions were taken at all

locations during 2004.

Mohali and Toansa plants in India were

also upgraded with investment in

i n s t r u m e n t e d s a f e t y t r i p s /

alarms/interlocks on all solvent recovery

units. Fire protection systems were also

upgraded with a new hydrant system

and water sprinklers, including

procurement of a foam fire tender. To

keep its technical personnel updated on

their safety knowledge, the Company

also conducts various external and in-

house training programs under the

supervision of overseas experts and

consultants.

M/s Chilworth organized an in-house

training program on 'Hazards of Static

Electricity & Dust/Gas/ Vapour Explosion

- Analysis, Prevention and Control'.

Through HAZOP (HAZard and

OPerability) studies, all the necessary

E H S r e q u i r e m e n t s a r e b e i n g

incorporated in all the new projects, at

the original design stage itself.

The Company's efforts in the area of EHS

have been duly recognized with various

awards conferred during the year.

Safety Measures

Local/

Legislation &

Divisional

requirements

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BuildingA Global

TalentPoolAs Ranbaxy continues on its ambitious growth plans, the

importance of having the right people cannot be

underplayed. With the global HR team rising up to the

challenge, several initiatives, aimed at building and

sustaining a global talent pool, have been initiated.

With the strategic vision of 2012 on

the horizon, Ranbaxy is marching

ahead with its novel ideas and new

ventures globally. In the days to come

there is bound to be a regular

requirement for good quality personnel.

The global HR team is engaged in

developing a talent pool to sustain its

future needs.

Recruiting the right talent is an onerous

job, which demands inculcation of the

behaviors described in the Company's

'Value in Action' (VIA) that need to be

imbibed across the organization.

Ranbaxy has embarked on harmonizing

the recruitment process across the

organization and making it at par with

the best global practices.

The process involved generating a

Tapping Right Talents

database from all countries and

business units across the globe to

define the 'as is' process. The idea was

to identify the good practices

followed within the organization and

to evolve a desired 'to be' process. A

global HR meet was held to

brainstorm the intricacies of

recruiting the right talent in the

organization.

A user's handbook, 'Ranbaxy's

Recruitment Guide' entailing the

comprehensive process to be

adopted to create and nurture a

global talent pool was also

developed.

To ensure effective implementation

of the recruitment process, extensive

training was conducted to support

the improved recruitment process.

The training focused on familiarizing

the team with the tools and

methodologies to be used to bring in

objectivity.

With the objective to achieve the

maximum output, Ranbaxy has

partnered with Saville & Holdsworth

Ltd (SHL), a UK based global firm

specializing in the use of scientific

methodologies and objectivity of

assessment.

Ranbaxy also organized a five-day

seminar on Marketing Excellence at

The Ashridge Experience

Ashridge, UK. The aim was to develop a

team of professionals equipped with

brand marketing skills.

Mr Udai Upendra, Vice President,

Global Human Resources, addressed

the participants and set the ball

roll ing. The knowledge packed

event was a part of a global

initiative aimed at preparing the

brand building skills of the organization.

It proved to be the convergence

of young professionals from across

the world, gaining from the experiences

of seasoned professionals from top-

end international institutes. A series

of highly enriching brainstorming

sessions enlightened the participants

with nuances of global marketing

strategies. It was rated as a highly

motivational event.

Ranbaxy was recently awarded

"Sodexho Pass & Daks Awards for HR

Excellence" at a recently concluded

Asia Pacific HR Outsourcing

Conference in India.

The Company was selected

f o r t h e a w a r d f r o m

a host of nominations

by a jury of distinguished

p e r s o n a l i t i e s o f

international repute.

The felicitation was in

recognition of the

Company's work in the

a r e a o f t a l e n t

management.

Although the Company

is more known for its

strengths in marketing as

c o m p a r e d t o H R ,

R a n b a x y h a s a l w a y s

given due weightage to

people power. With such

projects, global HR has taken

up the mantle to ensure that

the Company draws from

the strength of its people.

Award for HR Excellence

HUMAN RESOURCES

"Ranbaxy believes that

development of organizational

talent is of prime importance

in ensuring continuous

growth. In 2004 the Company

reported an increase of 70% in

man days of training."

Mr Malvinder Mohan Singh, President, Pharmaceuticals & Executive Director, Ranbaxy

22

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SAFETY

R A N B A X Y W O R L D

The top management team of Ranbaxy

comprising Dr Brian Tempest, CEO & MD and

Mr Malvinder Mohan Singh, President,

Pharmaceuticals & Executive Director, visited

Japan in February 2005. The agenda was to

discuss future strategies with their Japanese

partner Nippon Chemiphar.

Japanese Connection

Japan

Ranbaxy extended its hand towards

c a n c e r p a t i e n t s b y d o n a t i n g

medicines to the National Cancer

Coalition (NCC) in Nicaragua. These

medicines were further distributed to

various public hospitals and Oncology

institutes in Nicaragua.

A Gesture of Goodwill

Nicaragua

Mr Junichiro Koizumi, the Japanese Prime

Minister visited India in April 2005. During

his visit he met the business leaders of India

in an event organized by Confederation of

Indian Industries (CII). Mr Malvinder Mohan

Singh also met him during this visit.

The Indian President, Dr A P J Abdul Kalam,

during his visit to Russia in May 2005, took

time out to meet representatives from

Ranbaxy and other top corporate houses in

Russia and learnt about the ongoing

challenges faced by them in that country.

Japanese PM Visits India

Ranbaxy meets Dr Kalam

Russia

Mr Malvinder Mohan Singh, President,

Pharmaceuticals & Executive Director,

Ranbaxy, along with Mr Shivinder Mohan

Singh, Joint Managing Director, Fortis, &

Mr Harpal Singh, Chairman, Fortis, met

US Senator, Ms Hillary Clinton at a formal

dinner during her recent visit to India. She

was accompanied with Mr Sant Singh

Chatwal, a noted US Hotelier.

Mr Ramesh Adige, Whole-time Director,

Corporate Affairs & Global Corporate

Communications, Ranbaxy, met the Prime

Minister of Thailand, Mr Thaksin

Shinawatra, at an exclusive meeting

organized for the top corporates, during

his recent visit to India.

Ranbaxy Welcomes Thai PM

Mr Adige Meets

Sheikh HamedSheikh Hamed Bin Zayed Al Nahyan, a

member of the ruling family & Head, Dept

of Planning & Economy, Abu Dhabi, was

on a four day state visit to India.

Mr Ramesh Adige, Whole-time Director,

Corporate Affairs & Global Corporate

Communications, Ranbaxy, met Sheikh

Hamed at a special meet held in New

Delhi.Two leading Pharma Companies of India,

Ranbaxy and Dr Reddy's, are engaged in an

annual cricketing event 'Pharma Cup',

extending their relationship beyond market

competition. Incidentally this year, Ranbaxy

won the cup, second time in a row at a match

played at Hyderabad, India.

Ranbaxy Honors Scientists

Pharma CupIndia

The Hon'ble President of India, Dr A P J Abdul

Kalam, presented the Annual Ranbaxy

Research Awards at a prestigious ceremony

in New Delhi late last year. Ranbaxy Science

Foundation, the promoter of these awards,

felicitated 11 Indian scientists in recognition

of their outstanding original research

contributions, made in the field of Medical

and Pharmaceutical Science, during the

years 2002 & 2003.

Special MOMENTS

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Malaysia

The dosage forms

facility of Ranbaxy at

Malaysia (RMSB) in

S u n g a i Pe t a n i i s

undergoing expansion

to meet the growing demands of Ranbaxy

products.

Capacity Expansion

Ranbaxy Asia Pacific team organized a series

of seminars on the role of Statins in diabetes

in China, Vietnam and Myanmar. The

seminars were greatly appreciated for the

latest information they presented to the

medical fraternity.

Seminar Series on Statins

Asia Pacific

Awards

Ranbaxy (Guangzhou China) Limited

(RGCL) was conferred with 'Yangcheng

Friendship Award', the top felicitation

for foreign investments, for its

cont r ibut ion to Guangzhou ' s

(Yangcheng's) local economy and the

development of society.

China

National Safety Award

India - Toansa Plant

Energy Efficient Unit

Ranbaxy's Toansa plant bagged the

prestigious 'Greentech Environment

Excellence Silver Award' in the pharma

sector for the year 2003-04, given away by

the Greentech Foundation, a Non

Governmental organisation.

In recognition of the Lowest Average

We ighted Frequency Ra te , the

manufacturing facilities at Toansa

received the 'National Safety Award' as a

runner up for the year.

Ranbaxy's Toansa location also won the

'National Award for Excellence' in Energy

Management as an 'Excellent Energy

Efficiency Unit' for the year 2004.

Mr Malvinder Mohan Singh, President,

Pharmaceuticals & Executive Director,

Ranbaxy, attended a conference organized

by International Generic Pharmaceutical

Alliance (IGPA), held at Malta from June 19

to 22, 2005. Mr Singh made a presentation

during the conference on, 'Will India

b e c o m e t h e g l o b a l c e n t e r f o r

p h a r m a c e u t i c a l r e s e a r c h a n d

development', which was well appreciated

by the audience.

IGPA Conference

Malta

Care for EnvironmentYangcheng Friendship

Award

Ranbaxy's child

resistant card

pack for 'Sortet'

capsules and

innovative pack

for Pepfiz tube

w o n t h e

p r e s t i g i o u s

' I n d i a s t a r '

Awards for best

packaging in two categories. The

awards were given away by the Indian

Institute of Packaging, under Govt of

India.

Twin Awards for

Packaging

Early this year Ranbaxy moved to a new

corporate office in Gurgaon, India, bringing

the entire Ranbaxy team under one roof.

Mr Tejendra Khanna, Chairman, Dr Brian

Tempest, CEO & MD and Mr Malvinder

Mohan Singh, President,

Pharmaceuticals & Executive

Director, inaugurated the new

building by performing a

traditional puja.

Ranbaxy Moves to New

Corporate Office

24

SPECIAL

MOMENTS

FINANCIAL

UPDATE

COVER

STORY

YOUNG

GLOBAL

LEADER

WAR ON

AIDS

HEADWAY

INTO

BRAZIL

CORPORATE

SOCIAL

RESPONSIBILITY

USA-

FORTIFYING

PRESENCE

EUROPE-

BRAND

BUILDING

NEW

PATENT

REGIME

ENVIRONMENT

HEALTH &

SAFETY

R A N B A X Y W O R L D

Ranbaxy Laboratories Limited recorded a growth of 21% in

its global sales for the year 2004. The international sales

revenues touched 79% of the total sales and the Company

continued its focus on the value added dosage forms which

accounted for 89% of the total sales. Ranbaxy has also

ventured into new markets of Spain, Portugal and Canada

during the year.

The Board of Directors approved and released the audited accounts for

the year ended December 31, 2004 and the unaudited results for the first quarter ended March 31, 2005, in April 2005.

The audited results for the year 2004, recorded Consolidated Sales of Rs 53130 Mn (US $ 1174 Mn), registering a growth of 17% (21% in dollar terms).

The overall consolidated Profit After Tax& Minority Interest, at Rs 6,986 Mn was 8% below 2003. However if the exceptional items are excluded, then the consolidated PAT at Rs 7,246 Mn reflected 1.7% below last year. The marginal decline in PAT was primarily due to a significant step-up in the C o m p a n y ’ s R & D e x p e n d i t u r e ,

Making Strides

Globally

Cefuroxime Axetil impact in USA, the rupee appreciating against the US dollar and pricing pressures in some key markets.

Region wise global break up remained satisfactory, with the US accounting for 36% of the global sales, while Europe and BRIC countries constituted 16% and 26% of the global sales. Europe had a significant growth of 116% over the corresponding period.

Ranbaxy is strategically making its global moves, with expansion of its m a n u f a c t u r i n g c a p a c i t i e s worldwide. The existing plants in Toansa (Punjab), Paonta Sahib (Himachal Pradesh), Dewas (Madhya Pradesh) and Terminal Road (New Jersey, USA) are also being e x p a n d e d . I n I n d i a , n e w manufacturing units are on the anvil in Batamandi (Himachal Pradesh), Mohali & Lalru (Punjab). A state-of-the-art manufacturing Plant is also being set up in Brazil to cater to the growing needs of that region. Ranbaxy has also entered new markets by setting up its own subsidiaries in Spain, Portugal and Canada.

Working towards its goal, Ranbaxy is gearing up and building blocks for a better future.

"We saw a year of robust sales

growth, backed by a strong

performance in Europe. During

the year, we made substantial

investments in strengtening our

product pipeline, as well as in

enhancing our research and

manufacturing capabilities."

Quarter 2, 2005 Highlights

Sales (Key Markets) 2004 All fig in US$

USA

Europe

UK

Germany

France

BRIC Countries

Brazil

Russia (Including Ukraine)

India

China

F INANCIALS

Managing Editor: Ramesh Adige; Chief Editor; Raghu Kochar; Editor & Publisher: Seema Ahuja. Ranbaxy World is an external newsletter of Ranbaxy Laboratories Limited.

Ranbaxy Corporate Office, Plot No 90, Sector 32, Gurgaon, Haryana, India.Tel: 91-124-5135000. e-mail:seema.ahuja@ranbaxy.com

Should you wish to receive this newsletter or forward to an acquaintance please send in details at the above address.

Ranbaxy on the Web: www.ranbaxy.com;

www.ranbaxyfordoctors.com

Ranbaxy World is also available on our website:

www.ranbaxy.com/newsroom/newsletter.htm

Mr Malvinder Mohan Singh,

President, Pharmaceuticals &

Executive Director, Ranbaxy

426 Mn

192 Mn

50 Mn

26 Mn

73 Mn

305 Mn

31 Mn

45 Mn

217 Mn

12 Mn

• Q2 '05 Global Sales at US $ 309 Mn,

+ 11% ( Q2 '04 : US $ 279 Mn)

• Q2 '05 PAT 43% better than Q1 '05

(trailing quarter), but 47% below

Q2 '04 (corresponding quarter)

• R&D expenses double to US $ 26

Mn

• European countries recover with

sales at US $ 54 Mn, + 27%.

• BRIC countries bounce back with

sales at US $ 95 Mn, + 22%.

• Partial recovery in US sales at

US $ 82 Mn, - 10%.

• The Company's total prescriptions

generated in USA in Q2 '05

recorded a growth of +26% versus

Industry growth at +16% (in the

molecules that Ranbaxy markets).

• First Product Vogseal (Voglibose)

for diabetes was launched in Japan

through its joint venture.

• Ranbaxy becomes the only Indian

Pharmaceutical Company with

presence in top 5 pharma markets -

USA, Japan, Germany, France & UK.

Dr. Brian Tempest, CEO & MD,

Ranbaxy, on Q2 Results

"We have committed ourselves to a

series of strategic and investment

initiatives that will equip the

Company favorably to achieve its

mission of US $ 2 Bn sales by the year

2007.”D

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