centre point ANNUAL REPORT 1999-2000 9 PHARMACEUTICAL INDUSTRIES LTD.focus NOUN: ILA place of concentrated activity, influence, or Importance: center, eadquarcers, hear, hub, seat See EDGE. 2. point of erigin from which ideas or influences, for example, originate: bottom, center, core, heart, hub, quick, root! See START. VERB: I. To devote (oneself or one’s efforts): address, apply, bend, buckle down, concentrate, dedicate, devote, direct, give, turn. See COLLECT. Seo WORK. 2, To direct toward a common center center, channel, concentrate, converge, focalize, See EDGE, Roget’ The New Thesars, Thr Eten, (Copright © 1995 by Houghton iin Company Pablhers Focus on the speciality customer is the centre point at Sun Pharma leis the principle offight inwhich allthings are found dissolved, Iesonly from thislight that mind expresses clarity of thought. All burning fire, allshining sun allsubtle qualities of the atmosphere allsiNer radiance ofthe moon are nothingelse but this. 4.1 Setar Ups ‘excerpted fram Fer the Uponishade ‘Anande Wood, Full ile Pblationsroy, centre point “Tas year when we wrote t you, we detaed the tree areas we had poner oases ofr bushes: cede inthepet arn fo mangaentl natin nd imeem, ‘Pes comin bet thustof ou statepefoct aes we sete dient bldg sangha te corny wal inate vec. Fapid sea changes inthe Indian markets ior the state of flux that the international phatma matkot has been witness to, Quick fre responses and a sense of uigeneyn making the most of opparturitos ‘acxossan expaniing canvas remain paramount (Our continuing double-digit growth (in excess of 34% that we've shown this year| had 2 important elements- growth across the specialty therapy areas and growth across the intematonal markets. While the therapy areas in which we have akeady reached a significant presence continue to form a foundation an which we are building, growth from new therapy areas have now aid to this base. Research is becoming an increasingly important atea for your ‘company and the investments in the past year reflect this. Our ‘blueprint for the intemational markets is delivering numbers as fr as the speciality bk active business is concerned, the strategy fr the intemational dosage form business roqures fine turing, Soverl structuralchangestathis elect were putinte place this yar From a ranking of 10” place inthe domestic prescription market in March last year in March 2000 we had moved up to 8” poston, Our rank for Mi, cumuative from January is 5" We aed prescription share inal ur key therapy areas: psychiatry, neurology, cardiology, _and gasttoentrology-each increase in prescription share vary closely fought. As satisfying was the ranking upswing withthe newer therapy _ateasas ve dlgenty put into place our tempiateforgronth ‘Our template for growth is centered around a single element the customer, We have learnt and intemalzed that one creates lasting vole only when ane deliv value to the customer year after year ‘The elements that nadle us to delver value remain unchanged: In house sourcing of complex bulk active that equips us to launch new ‘moiscules ahoad of competition, new products that dalverthorapy ‘advantages for the patint, effective coverage and meaningful promotional strategiessummary Total income was up 34% propelled by domestic growth and even Domestic stronger bulk active export, Domestic formulation sales maved from Formulation | 311.16 | 236.44 strength to strenath. We now intend to leverage cur bulk skis to Bukacives | 106.18 | 53.43 enter developing markets with teresting dosage forms atattective Prices ahead ofthe competition, The idea isto build a similar therapy «area specific specialty franchise in those markets. ideal, we woud Bukécives | 4877 | 53.04 like tobe identified closely with atleast 2high growth therapy areasin each country we oporatain Exports of seciaty bulk actives across Sun Pharma and Sun Pharma Export increased 42% to Rs. 90:23cr. These are repeat orders from large end users where we have already established presence aver the last few years. Increasing approvals from the regulatory ‘authors from the developed markets such asthe Canadian HPB, the EU andthe US FDA willals translate nt value ation for these ca bulkactives n nda your company continues to grow at arate that is ‘more than 3 times the average rate of growth forthe industry. (ORG Domestic | 1043 15.76 Retail Chemist Audi, March 2000}. As we take steps to consolidate ‘ur positon in newer therapy areas that we entered post acquisition, marketshare stands at 249%, up from 2.18% last year and 0.9% at ‘the time o ow IPO in 1994 (a sensitle baseline yea. The specialty segments of our interest aro rowing faster than ndustryaverageand are expected to continue this pace of growth, led by expanding ‘matkets nd new ireatments for hitherto unaddressed areas. Europe 27.4% Asia 41 33% Domestic Markets The Sze of the team depends onthe specialty covered - her number and spread Austral 1.59% Areas 18.74% 087.23% ‘eth USSR ica 3.6456 FIELD TEAM SIZE 95 166 246 268 4 68 68 94 PSR Managers 36 3 a 9 79 7 19 29 SALES BREA UP BY TIPE SUN HARA | | 1995-2000 | 3998-1999 Exports Formulations | 927 | 12.44 ues | 12 o OtherSales | 092 | O24 SSALES BREAK UP BY TYPE; SUN PHARMA EXPORTS |p x) 1999-2000 | 1998-1999 Formulations | 14.27 | 13.39 Bulkacves | 4126 1057 International Markets High value buh actives enabled the ‘company make inroads in enacing marketstherapy review BREAK UP BY THERAPY AREA At close to 35% of domestic formulation sa psychiatry and Pop 16565 neurology “continue to be the largest segments. Cardiology/diabetology are a close second, at aver 2% sles. Gynecology, oncology and orthopedics ae the high growth areas, although ona smaller base 6 brands feature mang the county’ tap proscribed 300 pharma brands (Monotate, Alzolam, Zepto, Aistarines 1.5% Glucored, Encorate, Colact) This year a new specialty division Fjelear 147% Artifecives 6.5% Orthopedic 473% (par) Fespratory 8% Dabetolagy ‘Symbiosis was made opetationain der to bring thebenefitsof ‘romation to oldr yet frequently preseribd ps Greeley 6.3% hatry and neurology Gasrooterlogy 10.21% ‘ewsiog/T8 customer centric The increase in customer rankings signals increasing a t ewer therapy areas that we have entered in thelast few years. sensible mixof elements has caused thisrank ncease- effective ld coverage, focused product promotion, aggressive new product introduction end the right doctor product match. Major among the Prod beep launched with every system advantage that ha his year are Timolet GF (timolol maleate gel fring system), Direc (ciazepam cecil ge), Azelastrasal pray (azeastine nasal spryl. 9 oped in-house and scaled up. Several ofthese bulk actives alowed us to enter interesting formation markats Bulkactves were ss ‘Some of these dosage forms were designed tocer adler system advantage, makingit more convenient forthe patient This teport looks a the events being the cum the progress and significanthighights at each of ur marketing dion, Noy 1989 Fb 2000 ly 999 Octbert 99 Pye 1 2 2 astroeteragts 2 2 Diabet 7 ? Crest phscans 3 5 Cansutantphysidars 3 Z Dcthopedcans a 4 Drcoagits 7 5 Ootthalnologiss 5 6 Nepiraogess 7 Surges 2 pe ° 5 9 Pedatricane 5 |g Gynecologists oe ENT specats 6 7SYNERGY Synergy continues to be fimly enterched with its kay customer roups- psychiatrists and neurologists as a company of choice. A new dvision Symbiosis was spun of fom Synergy This eecvely doubles the Yace tims" Sun Pharma gets with ths important customer group- representatives frm two dvsions vst n place of cone caret. Tis aso allows detain ie for olde product ines that haveintresting market sizes and uses, (Over the lst year, Synerayintioduced products to teat alments that are commonly encountered in children: Addvize forthe treatment of attention deficit disorder), Direc? (arectal ge containing ciazepar, ‘The latest schizophrenia treatment Oleanz (aanzapine) was also introduced in order to round off the teatment basket for schizophrenia \With Adewize, we have begun to use amatketing approach that has worked with us eater: enty into @ nascent maket, increasing ‘awareness with grassroot level programs. making the therapy avalsle and bulding molecule size yeratteryeat Direc 2 woats episodes of epileptic fits and febre convulsions in cide, Treating epilepsy in children in different than treating cin adults because behavioral and learning side effects are very important. The primary advantage with Direc 2is that t canbe safely administered by the pationt’s family members without ‘medical/paramedicalassistance-unike an injectable, Thisis certainly aplisina home/vacation setting whereimmediate medical attention may not always be available. Addwize and Direc 2 also add value to ‘ur productoffeting for pediatricians Cleane (oizzapine), one of the latest among roleculas to teat schizophrenia symptoms was also inreduced, Oleane scores over other molecules used to teat schizophrenia on several counts. Extrapyramidal side effects such as involuntary tremar are very law \with Oleanz, Olga is much ass likely to cause cognitive impairmont and interfere wth day to day ving than older molecules. We ae fully integrated for this crug- we make the bulk active olanzapine, the activeingrecientin Olean ‘Synergy’santiegileptic portal, which had severalnew introductions in 1998 and 1999, witnessed steady crows asthe sale for soveral ofthese products pckedup, Enorate (sodium valproate, wich was relaunched last year with the long acting frm Encorate chrono, has| ‘grown by leaps and bounds to become the Sth largest sling brand forthe company, Zepto (carbamazepine and Lonazep (clonazepam) ate the other antiepleptics that feature in the companys Est of leading products, TOP! APRODUCTS Value cts 1088er 9.32 70k Sader 4.08 (CR ech ue Such 200) ADD ATTENTION DEFICIT DISORDER noconsise ot wobasesyons Pert pan eka cs, Hey ‘may or may note present 100 i tty i bh, sc teen peck angdseesAoo pa dese noite JOD ko nena abled this 0 instant rel tcubiy dinates Etre 98 dance ‘eye i bg enantio code leone psn est eas Arosa sty 0 ADD New York Tins. dune 28 200 moses he wget ie hned to the covet fiogasis of his ascee PeopleithADDare tes ig ik of developing eat ing 16 tat rains exsontve tuctn ‘eer pling nd stayin