PHARMAGEN LIMITED

NATURE OF BUSINESS
STATUS AND NATURE OF THE COMPANY

The company was incorporated in Pakistan on November 24, 1990 as a public limited company-unquoted under the Companies Ordinance, 1984, but its term finance certificates were quoted on Lahore Stock Exchange uptill May 02, 2007 when the company exercised its call option and redeemed its TFC,s in full on April 14, 2007. The company is engaged in the manufacturing and sale of pharmaceutical products. The registered office of the company is situated at 5-A, Zafar Ali Road, Gulberg V, Lahore. The company is engaged in the manufacturing and sale of pharmaceutical products. MANAGEMENT STRUCTURE Company has two wholly owned subsidiaries: 1) Pharmagen Healthcare Limited 2) Pharmagen Pharmaceutical Limited

Capital and Debt Structure: The company does not have a complex capital structure. It has 17,944,330 ordinary shares of Rs. 10 each, and total facilities of Rs 588.052 million comprising of long term syndicated loan and short-term borrowings provided by various banks. Production Facilities: y Main factory at 30 KM Ferozpur Road, Lahore.

Major Product: 1. Semi Synthetic Penicillins (SSPs) Facility

Pharmagen's first project was the basic manufacture of Semi - Synthetic Penicillins (SSPs). The salient features of this project are as follows: Commercial startup: 1993 Location: Kot Nabi Bukshwala, 34 - K.M. Ferozepur Road, Lahore - Pakistan Products:
1. AMOXYCILLIN TRIHYDRATE 2. AMPICILLIN TRIHYDRATE 3. CLOXACILLIN SODIUM 4. AMPICILLIN ANHYDROUS 5. FLUCLOXACILLIN SODIUM

Capacity: Approx. 425 tons of SSPs per annum. Technology : Conforming to international standards. Meeting Local demand: The project is meeting the entire demand of (API) SSP's both from multinationals and local companies. The plant is regularly audited by regulatory authorities for CGMP compliance and by multinational companies like GlaxoSmithKline and Bristol-Myers Squibb which testifies to the premium quality of materials produces therein.

2. Oral Semi Synthetic Cephalosporins (SSCs) Facility The company's second project was the manufacture of oral (API's) cephalosporins in dedicated facility whose particulars are as below: Commercial startup: 2000 Location: Kot Nabi Bukshwala, 34 - K.M. Ferozepur Road, Lahore - Pakistan Products:
1. CEPHRADINE 2. CEPHALEXIN

3. CEFADROXIL 4. CEFACLOR 5. CEFIXIME

Product(s) in pipeline:
1. CEFUROXIME AXETIL

Capacity: Approx. 120 tons of SSPs per annum. Technology : Conforming to international standards. 3. Sterile SSCs Facility Commercial startup: 2006 Location: Kot Nabi Bukshwala, 34 - K.M. Ferozepur Road, Lahore - Pakistan Products:
1. CEPHALEXIN SODIUM 2. CEPHRADINE STERILE 3. CEFOTAXIME SODIUM 4. CEFTRIAXONE SODIUM

Product(s) in pipeline:
1. CEFAZOLIN SODIUM 2. CEFOPERAZONE SODIUM 3. CEFTAZIDIME 4. CEFUROXIME SODIUM

Major Raw Materials Cefotaxime Sterile Cephradine L-RG9 Cefixime Cefaclor Cefadroxil Cephradine Cephalexin Flucloxacillin Ampicillin Amoxycillin Amoxycillin Cloxacillin Ceftriaxone Sterile

NOTE: More than 95% raw material is purchased from China and India.

4. Quality All products conform to latest BP / USP specifications and are manufactured strictly as per international guidelines under aseptic conditions and in an automated plant.

Major Customers:

1-Glaxosmithkline Pakistan Limited 2- Wyeth Pakistan Limited 3- Bristol Myers Squibb 4- Novarties Pharma ( Pakistan ) Limited 5- Wilson Pharmaceuticals 6- Werrick Pharmaceuticals Major Suppliers:

1-Glaxosmithkline Pakistan Beecham U.K. 2-DSM Dertil Spain 3-LUPIN Ltd. 4-Lonza 5-DOC Pakistan Ltd.

Major Competitors:

1- Adamgee Pharmaceuticals ( pvt ) Ltd. 2- Albro Pharmaceuticals 3- Bayer Pakistan ( pvt ) Ltd. 4- Khuram Pharma ( pvt ) Ltd. 5- Libra ( pvt ) Ltd. 6- Scientific Technology International ( pvt ) Ltd.