***-*** Research Laboratories

Building blocks for better life

Building Blocks for Better life

Teaser
This is a Teaser It does not imply an offering of securities. It is intended for Private circulation and for the information of the recipient only. This document is confidential
STRATEGIC RELATIONSHIPS GROUP

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Matrix Consulting Hyderabad India = +919989040404

***-*** Research Laboratories

Building blocks for better life

Confidentiality Agreement
The undersigned recipient acknowledges that the information provided by ****** Research Laboratories in this business plan is confidential and agrees not to disclose it without the express written permission of ****** Research Laboratories. It is acknowledged by the recipient that the information contained in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by the recipient may cause serious harm or damage to ****** Research Laboratories. Upon request, this document is to be immediately returned to ****** Research Laboratories. ___________________ Signature ___________________ Name ___________________ Company Name ___________________ Date

This is a business plan. It does not imply an offering of securities, for private circulation to the intended recipient only.

Note:

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Matrix Consulting Hyderabad India = +919989040404

***-*** Research Laboratories

Building blocks for better life

Genesis
Drug discovery has always occupied a center stage in every pharmaceutical industry. Billions of dollars were spent in the past and will be spent in the future, because it is linked to quality of human lives. Understanding the human genome vastly expanded the targets for drug intervention and even permits scientists to custom-tailor pharmaceuticals to individual needs. For medicinal chemists identifying a target is a very important task and designing a molecule, which binds to the target at nano molar concentration is another challenge for scientific intelligence. Another challenge also involves the binding of targets at nano molar concentrations. New chemical entities (NCEs) are compounds which emerge from the process of drug discovery. These will have promising activity against a particular biological target thought to be important in disease; however, little will be known about the safety, toxicity, pharmacokinetics and metabolism of this NCE in humans. It is the function of drug development to assess all of these parameters prior to human clinical trials. A further major objective of drug development is to make a recommendation of the dose and schedule to be used the first time an NCE is used in a human clinical trial ("first-in-man" (FIM) or First Human Dose (FHD)). In addition, drug development is required to establish the physicochemical properties of the NCE: its chemical makeup, stability, solubility. The process by which the chemical is made will be optimized so that from being made at the bench on a milligram scale by a synthetic chemist, it can be manufactured on the kilogram and then on the ton scale. It will be further examined for its suitability to be made into capsules, tablets, aeresol, intramuscular injectable, subcutaneous injectable, or intravenous formulations. Together these processes are known in preclinical development as CMC: Chemistry, Manufacturing and Control. Many aspects of drug development are focused on satisfying the regulatory requirements of drug licensing authorities. These generally constitute a number of tests designed to determine the major toxicities of a novel compound prior to first use in man. It is a legal requirement that an assessment of major organ toxicity be performed (effects on the heart and lungs, brain, kidney, liver and digestive system), as well as effects on other parts of the body that might be affected by the drug (e.g. the skin if the new drug is to be delivered through the skin). While, increasingly, these tests can be made using in vitro methods (e.g. with isolated cells), many tests can only be made by using experimental animals, since it is only in an intact organism that the complex interplay of metabolism and drug exposure on toxicity can be examined.
Matrix Consulting Hyderabad India = +919989040404

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***-*** Research Laboratories

Building blocks for better life

The process of drug development does not stop once an NCE begins human clinical trials. In addition to the tests required to move a novel drug into the clinic for the first time it is also important to ensure that long-term or chronic toxicities are determined, as well as effects on systems not previously monitored (fertility, reproduction, immune system, etc). The compound will also be tested for its ability to cause cancer (carcinogenicity testing). If a compound emerges from these tests with an acceptable toxicity and safety profile, and it can further be demonstrated to have the desired effect in clinical trials, then it can be submitted for marketing approval in the various countries where it will be sold. In the US, this process is called a New Drug Application or NDA. Most NCEs, however, will fail during drug development, either because they have some unacceptable toxicity, or because they simply do not work in clinical trials. As this drug discovery process becomes more expensive it is becoming important to look at new ways to bring forward NCEs. One approach to improve efficiency is to recognize that there are many steps requiring different levels of experimentation. The early phase of drug discovery actually has components of real innovation, components of experimentation and components that involve set routines. This model of Innovation, Experimentation, and Commoditization ensures that new ways to do work are adopted continually. This model also allows the discipline to use appropriate internal and external resources for the right work. Building blocks and screening compounds are significantly important (crucial) in medicinal chemistry. Building blocks provide versatility to medicinal chemists for designing a variety of inhibitors. ****** recognized the need of building blocks in drug discovery and decided to enter into that arena. In fact, it has already started offering premium quality, and highly versatile, building blocks to the scientific community. Another important area of interest is biochemicals. ****** decided to provide a variety of inhibitors and bio-chemicals to the scientific community.

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Matrix Consulting Hyderabad India = +919989040404

***-*** Research Laboratories

Building blocks for better life

Lately custom and contract synthesis has become an attractive target from big pharma companies. Being a facility in India, ****** offers a wide range of custom and contract syntheses. The company also offers scaffolds of libraries for high throughput screening. Furthermore, it often suggest additional interesting scaffolds to the customers. ****** routinely undertakes rather complex organic molecular synthesis. ****** also added Full Time Equivalent (FTE) service in its port polio. In contract & custom synthesis, ****** only undertakes chemistry that they believe which can reasonably be accomplished. ****** Research specializes in lead optimization, custom, and contract research. In the near future the company will offer high quality screening libraries and chemical intermediates for the pharma and bio-tech industries. ****** employs approximately 20 people in San Diego and 500 people in Hyderabad (India). Both of these sites will be supporting each other to cater to the needs of our clients. The companys facilities include state of the art equipment (NMR, LCMS, and HPLC) and fully equipped library facilities.

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Matrix Consulting Hyderabad India = +919989040404

***-*** Research Laboratories

Building blocks for better life

Mission Statement o Profitably Accelerate Drug Discovery. o Become a Major Player in Tools for Drug Discovery. o Increase Shareholder Value
o ****** Research Laboratories is committed to offer a variety of drug discovery tools to researchers in accelerating drug discovery. It is also committed to developing green chemistry to preserve the environment. The ultimate goal of ****** is to offer the most affordable healthcare for the common man by helping researchers in a cost effective environment. o The companys goal is to become a premier company in bio-chemicals and a leading manufacturer of building blocks and screening compounds. o Aspiring to carry a reputation in the market place for developing and delivering products of high quality and at a fair price ****** would achieve this through cutting edge technology (product development) and innovative marketing. o To accomplish the goal ****** is seeking to raise capital finance, management talent, as well as larger and more efficient facilities. o In pursuit of the goals, ****** team resolve to treat partners, customers, investors and community with care and promise to deliver credible results year after year. o For years to come the world would see ****** providing great service to the scientific community by providing drug discovery tools at affordable prices.

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Matrix Consulting Hyderabad India = +919989040404

***-*** Research Laboratories

Building blocks for better life

Company Overview:
****** Research Laboratories was founded in May **** and since then, the company is providing drug discovery tools to the scientific community. Within a short time ****** became a leading manufacturer of building blocks and bio-chemicals in the nation. The legal name of the company is ****** Research Laboratories. This is a California state S. Corporation with state ID # ****** and FID # *******. Our principal offices are located at: 10366 Roselle St. Ste C San Diego, CA 92121 We have approximately 1850 sq. feet of office space and 1850 sq. feet of laboratory space. Our current capacity accommodates 20 chemists and 5-6 office staff which is envisaged to be adequate for company needs for next 2 years. From its headquarters in the US, ****** manages its global activities through a team of highly motivated and talented staff who understand the importance of customer service particularly in responding promptly to and assisting with queries as well as any questions in relation to our products and the services we offer. ****** takes full advantage of modern information communications technology to streamline its overheads and offers a high quality, flexible and responsive business. The primary goal of ****** is to accelerate and facilitate the drug discovery process of pharmaceutical and biotechnology research laboratories by providing rare building blocks bearing highly pharmacophoric fragments within a timely and cost effective manner. ****** seeks to anticipate the needs of its customers within the life science industries. This flexibility and adaptability is the main driving force for the continued changes and is another core value in the ****** business model. By providing unique products of the highest quality the company aims to be the preferred chemistry partner of pharmaceutical and biotech companies worldwide. Regulations and Permits: ****** Research Laboratories primarily is a research driven company, the lab also does small scale manufacturing, mostly under 100 gm scale. ****** has all necessary permits to operate and has up-to-date record of inspections. These permits include business license. Fire department certification, resale permit, EPA certification for disposal. ****** believes in preserving the environment by developing green chemistry and believes in maintaining high ethics at work.

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Matrix Consulting Hyderabad India = +919989040404

***-*** Research Laboratories

Building blocks for better life

Business Over view:

Since its inception, ****** has been involved in bio-chemicals, building blocks, specialty chemical synthesis. ****** is also involved in custom and contract synthesis. ****** is a dedicated supplier of unique research chemicals (building blocks, screening compounds & natural products) as well as a specialist provider of integrated drug discovery solutions to the life science industry. The companys current collection of building blocks and rare screening compounds exceeds large number and is continuously growing through both in-house compound synthesis and Indian partnership initiative program. All the compounds are available from grams to 100's of grams. Many can also be synthesized in larger quantities upon request. ****** Specializes in: o Early stage proof-of-concept (POP) projects to validate biological hypotheses Validation of screening hits for exploratory medicinal chemistry (hit-to-lead) Intermediates for expediting med chemistry o SAR campaigns o Drug candidates for in vivo studies o Reference agents for bio-profiling o Reference metabolites o Building blocks for combinatorial chemistry o Key intermediates for pharmaceuticals o Key intermediates for biomaterial and biosensor applications o The primary aim of ****** is to improve and accelerate the efficiency and effectiveness of the drug discovery process by offering innovative technologies and solutions based on novel applications of chemistry and biology.

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Matrix Consulting Hyderabad India = +919989040404

***-*** Research Laboratories

Building blocks for better life

Products
Since its inception ****** continues to develop its global reputation for specializing in the supply of rare small molecule compounds to the and biotech industries. and strengthen synthesis and pharmaceutical

1. Building Blocks (pyrimidine derivatives, indole derivatives, unnatural amino acids, purines, azaindoles, pyrrolopyrimidines, pyrazolopyrimidines, sugar derivatives, imidozole derivatives, pyrazole derivatives, etc.) and screening compounds for drug discovery. 2. Bio-Chemicals A. Inhibitors (Kinase Inhibitors, in particular p38 map kinase, tyrosone kinase, caspase, -secretase, PKC, calpain, casein kinase, CDK, COX, MMP, and IPK inhibitors etc. and protease cock tails) B. Bio-Chemicals: a. Detergents: Octyl glycosides, dodecyl maltopyranoside, dodecyl glucopyranoside, SDS buffers, non-ionic detergents b. Zwitter ionic detergents: ASB-14, ASB 14-4, ASB-16, ASB-C6, ASBC7, CHAPS c. Calcium channel probes: Fluo-3AM , Fluo-3, Fura2, Fura2-AM, BAPTA, BAPTA-AM d. Kits: protein tyrosine kinase, ELISA o Contract research, custom synthesis: In this arena, ****** (USA) will have an advantage over its competition due to its proximity to Indian manufacturing facilities. o Lyophilization services: Lyophilization is our expertise.

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Matrix Consulting Hyderabad India = +919989040404

***-*** Research Laboratories

Building blocks for better life

The continued use of combinatorial chemistry to generate interesting compounds for highthroughput screening and of parallel synthesis for lead optimization, has led to the quest for more novel building blocks. ****** offers a diverse and unique set of over 10,000 heterocyclic (small (hetero) cyclic (fused) ring compounds with one or more chemical handles) such as imidazoles, pyridines, pyrazines etc as well as a variety of alycyclic (piperizines, piperidines) and aromatic compounds which are continuously being used to assist medicinal and synthetic chemists globally in developing hit generation and hit-to-lead optimisation libraries. The compounds are available in multi-gram (1-100 g) quantities (purity 90%min, typically >95%) which make them suitable for high-throughput and combinatorial synthesis or scale-up of lead compounds. The majority of these intermediates are offered ex-stock and dispatched them within 48 hours of receiving an order. Where a compound is out of stock it can be provided an expected delivery date. Novel compounds used for initial screening for biological activity is now available through new screening compound service. ****** currently offers novel libraries each consisting of approx 8000 unique scaffolds/compounds as well as a further library based on modified natural products. All the compounds are available in both regular plates as well as customer requested vials. The compounds in the collection are: o Diverse o Drug-like, and generally follow Lipinski's rule of 5 o High quality o These libraries are available on ISIS/Base and SD format. o Quality Control and Compound Purity Structure and purity of all compounds are verified by NMR and or mass spectrometry. The compounds have a minimum purity of 90% but the company typically supply intermediates with purity >95%. Custom Synthesis/Contract Research Outsourcing can be an important strategic component of any clients R&D portfolio. It is a decision which factors in 1) Cost-risk benefits (internal vs. external), 2)Timing, 3) Potential CROs skill-set capabilities and business practices.

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Matrix Consulting Hyderabad India = +919989040404

***-*** Research Laboratories

Building blocks for better life

In medicinal chemistry, this strategy allows in-house chemists to focus on the design and assembly of new lead molecules vs. routine syntheses which can be outsourced. Virtual biopharmaceutical companies have embraced outsourcing in order to direct maximum start-up funds to reaching proof-of-concept instead of immediate creation of infra-structure. ****** offers expertise in a wide range of custom synthesis and contract research chemistry covering all aspects of lab-scale organic and medicinal chemistry. Preparation of custom novel organic compounds Synthesis of known reference compounds Custom synthesis of small compound libraries Optimization of existing synthetic methods, discovery of novel approaches to the synthesis of target molecules o Collaborative or contract research projects to develop and synthesis new compounds designed for specific functions o All these services are available exclusively and confidentially on FTE or fee for service basis. o o o o ****** Customers are basically Pharma Companies including Pfizer, Amgen, Astra Zeneca, Merck etc. and Research Institutes such as NIH, various Universities and Biotech companies ****** defines its market as a drug discovery industry and as more funding flows into drug discovery, its products become higher in demand. With 15-20% more additional funding allotted to research in big pharma companies who are struggling to get new molecules (drugs) into the market, ****** senses an opportunity to grow considerably for years to come.

The Market:
R&D Spending by U.S. Biopharmaceutical Companies Reaches Record $58.8 Billion in 2007 Americas pharmaceutical and biotechnology research companies invested a record $58.8 billion last year in the research and development of new life-changing medicines and vaccines an increase of nearly $3 billion from 2006, according to analyses by the Pharmaceutical Research and Manufacturers of America (PhRMA) and Burrill & Company. Investment in research and pharmaceutical research challenging economic past seven years, Americas companies have consistently sales on R&D activities. development by Americas companies grew despite a environment and. Over the pharmaceutical research invested around 18 percent of

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Matrix Consulting Hyderabad India = +919989040404

***-*** Research Laboratories

Building blocks for better life

As in past years, there are an increasing number of potential new drugs entering clinical testing. Today, there are more than 2,700 medicines in development in the U.S. for nearly 4,600 different indications. Five years ago, there were about 2,000 medicines in development. U.S. pharmaceutical companies dedication to research has been observed by many independent, objective experts. For instance, the nonpartisan Congressional Budget Office (CBO) stated in a recent report: The pharmaceutical industry is one of the most researchintensive industries in the United States. Pharmaceutical firms invest as much as five times more in research and development, relative to their sales, than the average U.S. manufacturing firm. Americas pharmaceutical and biotechnology research companies continue to pave the way for the development of future treatments and cures, said PhRMA President and CEO Billy Tauzin. Simply put, R&D is the lifeblood of pharmaceutical research companies. Last years investment builds on over 25 years of growth in R&D spending as our researchers continue the search for new and improved therapies to tackle a wide range of diseases and conditions, such as cancer, heart disease, HIV/AIDS and Alzheimer's." The current pipeline includes more than 600 medicines to treat cancer, over 300 specific to rare diseases and more than 275 medicines for heart disease and stroke. This activity dwarfs the pipelines in other parts of the world, such as Europe and Japan, partly reflecting existing policies in the U.S. that foster innovation. With such explosive investments in drug research ****** sees an excellent opportunity for itself by shaping itself as a leading provider of new drug research tools as all the research requires building blocks and screening compounds to expedite the research programs. Thus ****** sees high growth potential in the industry if backed up by quality human and financial resources.

Competition:
****** competes directly with Cal Bio-Chem, Biomol, Auxxora, and Sigma-Aldrich and the companys advantage over the competition being its cost and quality of products.

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Matrix Consulting Hyderabad India = +919989040404

***-*** Research Laboratories

Building blocks for better life

Capital Requirements: To meet the expected demand and future growth ****** is seeking the financing necessary to fund the Marketing efforts and strengthen the lab with instruments such as robotic equipment for inhibitor library and natural products, HPLC and LCMS, etc. and to fund the payroll of the scientists. ****** is proposing to raise the will be raising immediately US $ 5 million against US $ 5,00,00,00 as equity divestment and US $ 5,00,00,00 as debt from Banks and financial institutions as level one funding. To take the company to the next level by establishing research laboratories in India and US and establish its own manufacturing operations ****** would raise US $ 20.00 million during 2010-11 in two phases. With the Level 1 funding of US $ 10 million funding the companys sales targets are as follows: Estimate Year actual Actual Projections Sales $ 20,00,000 $ 345,00,000 $ 1,500,00,00 $ 3,000,00,000 Gross profit $ 12,00,000 $ 190,00,000 $ 760,00,000 $ 1,600,00,000 o The sales would occur from sales in building blocks & bio-chemicals. o The company has a healthy gross profit margin of 60-65% o The first round of funding would be utilized for : (i) Funding increased working capital requirements (ii) Installing additional lab equipment (iii) Recruit and fund the payroll of the scientists. (iv) Increase visibility for ****** thru web marketing, monthly bulletin, attending conferences and work shops (v) Kick start research and development budget for new product development.
CAPEX Requirement Current assets Inventory Subtotal Fixed assets Lab Equipment Research for new drug discovery Visibility and Marketing effort Subtotal Cash Balance for Working capital US $ Phase 0 1,00,0000 1,00,0000 5,00,0000 1,00,0000 1,00,0000 7,00,0000 2,00,0000

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Matrix Consulting Hyderabad India = +919989040404

***-*** Research Laboratories

Building blocks for better life

PROJECTED RATIOS Profitability ratios & Break even Gross profit margin % Return on assets Return on equity Liquidity ratios Current ratio Quick ratio Cash ratio Solvency ratios
Total assets / total liabilities Total liabilities / total assets x 100% Proprietary capital / foreign capital Proprietary capital / total assets x 100% Debt to worth ratio 1 :

60.0% 65.9% 41.8% 8.43 8.43 8.23 10.81 9.25 9.81 90.75 0.50

65.1% 86.6% 42.7% 9.54 9.54 9.45 10.69 9.35 9.69 90.65 0.40

60.1% 87.9% 43.5% 28.47 28.47 28.29 25.52 9.92 24.52 96.08 0.30

60.1% 90.9% 45.0% 37.66 37.66 37.50 32.70 9.06 31.70 96.94 0.20

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Matrix Consulting Hyderabad India = +919989040404

***-*** Research Laboratories

Building blocks for better life

CONCLUDING REMARKS GENERAL From the foregoing detailed analysis of the Company proposal for plans to put up a *** **** ***** it can be concluded that: o The Company has been extremely careful and selective in preparing its business and Research program. o It has drawn up the scheme after adequately studying drug tools for new drug discovery. o The plans have been made in such a way that the salability of the Products could be almost assured with least marketing cost to the Company. TECHNO ECONOMICAL ASPECTS The factory is set up in a suitable location with minimum capital investment. The founders and management are highly qualified and experienced professionals and posses all required technical know-how in inventing tools for drug discovery and commercial expertise to market the Products. The promoters would be on full time occupation with the Company. A suitable and broad based marketing network has already been planned which could be taken expanded further if found necessary to achieve for proposed sales targets. FINANCIAL ASPECTS The Capital investment proposed is comparatively low and the promoters have necessary resources to bring in and organize the proposed capital. The financial assistance sought from Banks is well within normal of lending. The projected operational results show reasonable profit generation by the unit to enable it to meet its debt servicing obligations. A considerable part of cash generation is proposed to be ploughed back every year to supplement increased working capital requirement. Thus the venture is a thoroughly well planned organization and is a sound and viable proposition.

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Matrix Consulting Hyderabad India = +919989040404