Investor Presentation

November 2005
1

Safe Harbour Statement

Materials and information provided during this presentation may contain forward-looking statements. These statements are
based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual
outcomes and results to differ materially from these statements.
Risks and uncertainties include general industry and market conditions, and general domestic and international economic
conditions such as interest rate and currency exchange fluctuations. Risks and uncertainties particularly apply with respect to
product-related forward-looking statements. Product risks and uncertainties include, but are not limited, to technological
advances and patents attained by competitors, challenges inherent in new product development, including completion of
clinical trials; claims and concerns about product safety and efficacy; obtaining regulatory approvals; domestic and foreign
healthcare reforms; trends toward managed care and healthcare cost containment, and governmental laws and regulations
affecting domestic and foreign operations.
Also, for products that are approved, there are manufacturing and marketing risks and uncertainties, which include, but are not
limited, to inability to build production capacity to meet demand, unavailability of raw materials, and failure to gain market
acceptance.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of
new information, future events or otherwise.

Agenda
Pharmaceutical Industry Overview
Lupin A Differentiated Business Model
Financial Overview
Business Strategy and Investment Highlights

Pharmaceutical Industry Overview

Global Pharmaceutical Industry Overview

Estimated to be a US$550 billion market in 2004 (including estimated

Global Pharmaceutical Sales*

unaudited pharmaceutical sales)

Market expected to grow at a rate of 7% to 9%

North America is the single largest market accounting for approx. 50%
of global sales and is expected to grow at a CAGR of 10%
EU was the fastest growing market, growing at a CAGR of 26% in the
period 2002 2004
Emerging Trends
Growing importance of generics in regulated markets

Pressure from healthcare providers and insurance companies to reduce

healthcare costs driving usage of generic drugs
Increasing patent expirations driving generic drug availability
Legislative changes such as the enactment of the Hatch-Waxman act
and changes to the Medicare Act in the US providing a major boost
Stringent testing requirements and declining R&D productivity has led

to limited new drug pipeline

Increasing pressure on big pharmaceutical companies to enhance new
drug pipeline

US$ Bn

Regulated markets account for almost 90% of the market in terms of

revenue

3.7%
CAGR 1466

525
450

401

375

48
11
47

300

55
14
52

150

248

230

204

75

144

115

91

225

518
59
9
58

North America

2002
EU

Japan

2003
Rest of Europe

Source: IMS World Review (Industry Sales based on Audited Numbers)

Key Generic Drug Markets

France
Italy

1.9
2.5

Japan
UK

3.3
4.1

Germany

5.3

India

5.7

US
-

24.8
5.0

10.0

15.0

20.0

US$ Bn

2004
Rest of World

The generic drugs market which is expected to grow at 10%-12% over the next few years is a
key growth area for emerging pharmaceutical manufacturers

25.0

30.0

Factors driving the Indian Pharmaceutical

Industry
Generic Exports and API Outsourcing
Indian Pharmaceutical Market Overview

exports accounting for an additional

US$2.5 bn
Amongst top 4 markets by volume
globally
Strong branded generics market
Market growing at a rate 6%-8% as a
result of growing awareness, increasing
penetration & increasing affordability
Emerging segments such as CNS,
diabetes etc. growing at 15-20% +
Introduction of product patents in India in
2005 are expected to lead to a greater
emphasis on drug discovery and
development

Growth Opportunities

Approximately US$5 bn in 2004 with

India is well positioned to target generic exports and API

outsourcing opportunities in the regulated markets
Skilled work force with strong chemistry skills
Significant and sustainable cost advantage over
international peers
Good understanding of the regulatory framework
India has largest number of US FDA approved plants
outside the US
Largest number of DMF filings outside US
Indian companies are among the leading players
participating in Para IV challenges

R&D Outsourcing
Skilled work force at competitive costs
Significant progress in development of pharma & R&D

infrastructure over last 5 years

Focus on early stage processes for NCEs, NDDS, clinical
trials, process re-engineering and dedicated
manufacturing

A combination of strong chemistry skills, regulatory capabilities and quality manufacturing

has positioned India favorably to capitalize on the global pharmaceutical opportunity

Lupin A Differentiated Business

Model

Business Overview
Among the top 6 pharmaceutical companies in India

Leading global player in anti-TB & Cephalosporins

Strong position in prils and emerging global player in

statins

Therapeutic Mix - FY 2005

CVS
21%
Cephs
43%

Globally accredited manufacturing facilities

Strong R&D Focus

14 ANDAs, 15 DMFs, 4 COS, 2 E-DMFs filed in FY2005

Four NCE molecules in clinical stage

R&D spend in FY2005 US$18 mm

Anti-TB
24%
Others
12%

Geographical Mix - FY2005

Others
2%

Focused on US, EU, Australia, Japan, India, China

and CIS

Share in Revenues from America & Europe increased

from 10% in FY2001 to 24% in FY2005

Employs 4,259 people

Home to 260 scientists

America &
Europe
24%

India
53%
South East
Asia
21%

Product Profile - API & Intermediates

Proven process chemistry as well as fermentation
skills
Major therapeutic focus areas: anti-TB,
cephalosporins (both orals and injectables), prils
and statins
Quality and cost leadership
Relationship Driven model

Product

Therapeutic
Segment

Globa
l
Rank

Ethambut
ol

Anti-TB

Rifampici
n

Anti-TB

Pyrazinamid
e

Anti-TB

7ACCA

Cephalosporin Intermediate

Extending global dominance across a wider portfolio

7ADCA

Cephalosporin Intermediate

Increasing strategic partnerships / alliances

Lisinopril

Cardiovascular

Going Forward

Reap benefits of new and expanded capacities

Amongst the top 2 globally in each area of focus
7

Product Profile - Finished Dosages

US Specialty

US Generics

Focus on $ 7 Bn pediatric market thru a

dedicated sales force

Fast building a pipeline of finished products for

the US market

Foundation laid with the launch of Suprax showing an increasing Rx trend

~50 products in current pipeline with brand

value of +$ 60 Bn

Co-promotion with Cornerstone BioPharma for

Suprax with focus on primary care physicians

7 ANDA approved till date, 15 pending

approval

Looking at justifiable brand acquisitions and inlicensing opportunities

$756 mn Ceftriaxone launched in July 2005

with Baxter Healthcare and Henry Schein

Positioning to market other products from own

NDDS platform

API supply to Baxter Healthcare for Premix

Frozen
7 products planned for launch in FY 2006
Target = +15 ANDA filings every year
Target = +25 product basket by FY 2008

Success Strategy: Focus generic opportunities in regulated markets

Product Profile - Finished Dosages

India

Portfolio of over 80 finished products with

focus on anti-TB, anti-infectives, NSAIDS
cardiovasculars and diabetes

20 brands in the 'Top 3' of their respective

product segments

Business growing at a rate of 9% as against

2% growth in the overall industry
18 new products launched in 2005 including
anti-Asthma
1350 strong field force for marketing

Marketing divisions with specific therapeutic

focus
Extending reach to access rural markets thru
brand building

Other Markets

Fast building a pipeline of finished products for

the other markets with strong R&D focus
Partnership business model in EU with own
setup in select markets

+350 EOIs received till date

Plan to file 8-12 dossiers in FY 2006

Entering Japanese generic market thru alliances

Co-operation agreement with Kyowa Pharma

signed for multiple products

Consolidating presence in CIS market by

introducing more products
Entering the Australian market with value added
generics through alliances

Success Strategy: Strong R&D focus with broad market specific product offering

US / EU Product Development

Filings till date

Approvals till date
Target filings in FY06
Target launches in FY06
Products under development
Target filings going forward per year

10

US

EU

22

+15

8-12

25-30

8-12

+15

6-8

Globally Accredited Facilities

Mandideep
Ankleshwar

Tarapur

Pune

Goa

Aurangabad

Manufacturing

LOCATION

PRODUCTS

APPROVALS

Mandideep,

USFDA, UK MHRA, TGA

Madhya
Pradesh

Cephalosporin
s
Prils

Tarapur,
Maharashtra

Rifampicin
Lovastatin

USFDA, UK MHRA
-

Ankleshwar,
Gujarat

Ethambutol
Intermediates

USFDA
USFDA

Aurangabad,
Maharashtra

Rifampicin
Pyazinamide
Ethambutol

WHO, MCC (South Africa)

WHO, MCC (South Africa)
WHO, MCC (South Africa)

Lisinopril

WHO, MCC (South Africa)

Verna,
Goa

Noncephalosporin
Oral
Formulations

USFDA

Pune,
Maharashtra

R&D

Research Center

11

USFDA

Strong Research & Development Focus

Process

NDDS

Proven abilities in process

First licensing deal signed for anti-

chemistry and fermentation

infective product

Ability to develop products with high

Three patented platforms for

NDDS

technology barriers
30 DMF and 75 EDMFs filed

Process

ANDA

delivery systems
Two products launched in India

NCE

NCE

ANDA
Anti-migraine and anti-psoriasis
22 ANDAs filed,7 approved -

including $756mn Ceftriaxone

Broad range of filings with wide

therapeutic coverage
12

(herbal) in Phase IIa trials

Anti -tb and anti-psoriasis

(chemical) in phase I trials

Anti-diabetes and anti-bacterial in

pre-clinical stages

Experienced Management Team

NAME

POSITION

Desh Bandhu
Gupta, Ph.D

Chairman

Kamal K Sharma,
Ph.D

Managing
Director

Satish Khanna

Group President,
API

Vinita Gupta
Sharma

President, Lupin
Pharmaceuticals
Inc, US

Himadri Sen, Ph.D

President, Pharma
research

Shakti
Chakraborty

President, India
Region Formulations

Vinod Dhawan

President--Business
Development

Divakar Kaza

President, Human
Resources

Responsible for developing HR management strategy and align it with overall business strategy of the company
Brings along with him rich business experience of about 2 decades in organizations like Wipro, General Electric etc

Indrajit Banerjee

President, Finance
& Planning

Responsible for the finance, IT and planning functions and align it with overall business strategy of the company
Rich experience of more than 2 decades in organizations like Indal, Lucent Technologies

Harish Narula

President Corporate
Affairs

Heads the companys business initiatives in the CIS region

Supports the businesses through various Embassies and trade Associations

Nilesh Gupta

Exec VP, IPMG

13

BRIEF PROFILE

Founded the company in 1968

Started his career teaching chemistry at Birla Institute of Science and Technology, Pilani, Rajashthan

Experience of more than three decades at a range of senior management positions managing projects, corporate
development and general management in the pharmaceuticals and chemicals industries

Strengthened Lupin's API business and secured the company's position among top manufacturers, globally
Rich experience of more than 25 years in leading companies including Mitsu Industries, Tata Chemicals and Union
Carbide

Has led Lupin's foray in the advanced markets of the US and Europe and in cementing alliances with global majors

Spearheading Lupin's drive for NDDS, ANDA and patent fillings

Has worked with leading Indian and global pharma companies in the areas of pharma research, technology development
and transfer and manufacturing support

Has driven Lupin's entry in the lifestyle segments

Experience of more than three decades with leading pharmaceutical companies like Wockhardt, Aristo Pharma
Heads the AAMLA region, responsible for the development of Lupins business strategy for these markets.
Has worked with Ranbaxy in their international business

Responsible for driving product identification for the advanced markets identifying in-licensing and out-licensing
opportunities

Financial Overview

Financial Profile
Revenues

R
CAG

260

%
14.1

268

240
214

220
200
180

25.0

271
Net Income (US$ MM)

Revenue (US$ MM)

280

Net Income

175
160

160

22.7

22.0
19.4
19.0
16.0

16.6
13.8

13.0
10.0

140
FY2001

FY2002

FY2003

FY2004

FY2001

FY2005

EBITDA / Interest Coverage

5.4

4.0

14

2.9

2.3

2.0

2.0

FY2003

FY2004

FY2005

1.8

FY2005

2.0
1.7

1.0
0.5

FY2002

FY2004

1.5

1.0
FY2001

FY2003

2.5

5.3

5.0
2.9

FY2002

Debt / Equity

Debt / Equity (x)

EBITDAa/ Interest (x)

6.0

3.0

17.6

FY2001

FY2002

FY2003

0.8

0.9

FY2004

FY2005

Regulated Markets Driving Growth

Half Year Ended Sep 30

YOY

Key Highlights

(US$ Millions)
2004

2005

Growth

Income Statement Data

Export Revenue increased by 36%

Revenue

141.1

178.3

26.4%

EBITDA

17.0

34.3

101.8%

EBIT

13.4

30.0

124.8%

Interest

3.0

2.9

(2.9%)

PBT

10.3

27.1

162.2%

Finished dosage increased by 533%

PAT

8.7

20.1

131.7%

API revenue increased by 15%

Key Ratios
12.6%

19.9%

PAT Margins

6.4%

11.7%

EBITDA/ Interest

5.6x

11.7x

EBITDA Margins

15

Revenue increased by 26%

Buoyant off-take in regulated market

with sales increasing by 85% to
US$38.9 mm

Profit margins improved substantially

with reduction in costs

Business Strategy and Investment

Highlights

Business Strategy
Continued growth of
Anti-TB and
Cephalosporin Business

Strong Corporate
Governance

Broad Basing the

Product Basket
16

Strengthen Presence in
Lifestyle Drugs

Sustainable
Growth

Penetrate Regulated
Markets

ANDA, NDDS and NCE

Investment Highlights

Leadership status in the global anti TB and cephalosporin market

Strong growth opportunity driven by Lupins entry into regulated markets

which are supported by its strong DMF and ANDA pipeline

US FDA/ EDQM/ Australian TGA compliant manufacturing facilities

Increased focus on research programme including ANDA, NDDS and NCE

providing multiple drivers of growth going forward

Marketing tie-ups with global players

17

Thank You