Filed - Glenmark

Disclaimer
This presentation has been prepared by Glenmark
Pharmaceuticals Ltd. All information, statements and analysis
made in this presentation describing company’s objectives,
projections and estimates are forward looking statements and
progressive within the meaning of applicable security Laws
and Regulations. The analysis contained herein is based on
numerous assumptions. Actual result may vary from those
Less Regulated Markets
expressed or implied depending upon economic conditions,
government policies and other incidental factors. No
representation or warranty, either express or implied, is
provided in relation to this presentation. This presentation
should not be regarded by recipients as a substitute for the
exercise of their own judgment.

Contents
Background
Strategy and Business Units
Business Unit Overview
Financials and Projections
Summary

Background
History
29-year old company
Went public on Indian bourses in 1999
Identity / Scope
Integrated, operating in Research,
Manufacturing & Marketing of Pharmaceuticals
Business interests span formulations and bulk
activities
Global Footprint
Financial
Performance
Market
Capitalisation
Headquartered in Mumbai, India
Operates in over 80 countries
About 42% of revenues in FY 2006 from outside
India
Results in FY 2006 (ending March 31, 2006):
• Consolidated revenues of ~ $171 Mn
• Consolidated Profit after Tax of ~ $20 Mn
~USD 1026 Mn (as at October 26, 2006)
1

Strategy and Business
Units
2

Strategic roadmap: Transform into a specialty company
through research
Learning from Trends
• Growing through generics alone is
not a long-term value creator
• Differentiation is key – but close to
impossible in the generic space
• Niche therapy segments offer good
opportunity for value growth in
generics space
• Ownership of IP is critical to
differentiation and value growth
• NCE research is a large opportunity;
but success in biologics can help
leap-frog industry evolution
• Taking proprietary molecules through
all development phases is beyond our
current skill-set and risk-appetite
• Several markets are below the radar
screen for bigger branded pharma
players
The Transformation Plan
• Focus on building IP assets today, the
key engine for this transformation
• Out-license IP to drive/fund drug
development
• Build and launch portfolios of generic
products in niche segments like
Dermatology
• Retain/acquire IP rights for markets
under the “radar” screen
• In parallel, seek out markets with growth
potential and build a branded generic
marketing foot-print
• Subsequently, transform branded
generics to specialty businesses: launch
Glenmark-brand novel drugs
3

Execute through Business Units aligned to Strategy
Organized by Business Units
CEO
R&D
Generic Formulations
API
NCE
Biologics
(Swiss)
US
Europe
Latin
America
Less
Regulated
Markets
India
API
4

Research and Development
5

Build proprietary pipeline of NCEs/Biologics in high
growth areas with good licensing potential
RESEARCH FOCUS
NCE RESEARCH
Metabolic Disorders
• Diabetes (Type II)
• Obesity
Inflammation
• Asthma/COPD
• Pain
NCE Research – In Mumbai, India
• Focused capability building over 5 years –
170 scientists, spend ~5% of revenues
• Eminent scientific advisory board
• Five validated targets; 3 more planned
• 6 leads – 2 in Ph II, 3 entering Ph I shortly
and 1 in Pre-clinical
• Target: One NCE into clinics every year
BIOLOGICS
Undisclosed Therapies and Targets
Biologics Research – In Switzerland
• Lab commissioned –15+ researchers
by 2006
• Invest to build capability until 2009-10
• Start with bio-improvics; new drugs by
2008
• Target : Ph 1 on first lead by 2009
6

Licensing Strategy
Partner Selection
• Selection criteria : (a) drug development skills (b) experience in therapy area
(c) Marketing prowess (d) deal value (e) development program/speed to market
• Preference for before Phase IIA/PoC deal timing;
Sales $ Bn
$400
$300
$200
$100
Licensing Focus
US
EU
Jap
Retain rights: high
growth markets of
Asia, Africa,
Russia, Lat Am,
Australia
APPROACH TO LICENSING
• Retain use of clinical data generated
by partner
• Retain exclusive /
co- commercialization rights to
products for Asia, Africa, Australia,
Lat Am and Russia
• Register product upon US/EU
approval in these markets and launch
$0
0% 5% 10% 15% 20%
Annual Sales Growth
License out the leads to partners for the markets of North America, Europe and
Japan; retain exclusive / co-commercialization rights for rest of the world
7

Progress on 6 Compounds …
Plan to progress 5 compounds in clinical trials by FY 2007
Compound Target Primary Indications Status Target
Launch
GRC 3886
PDE 4
Asthma, COPD
Ph II 2009/10
(Oglemilast)
GRC 8200
DPP IV
Diabetes (Type II)
Ph II 2010
GRC 6211 VR 1 Osteoarthritis, Dental Pain,
Incontinence, Neuropathic
Pain
GRC 10693 CB 2 Neuropathic Pain,
Osteoarthritis and other
Inflammatory Pain
Ph I in
Nov 06
Ph I in
Jan 07
2011
2012
GRC 10801 CB 1 Obesity Ph I in
Q4 FY07
2011
GRC 4039 PDE 4 Rheumatoid Arthritis,
Inflammation
Ph I in
Q1 FY08
2012
Glenmark will conclude 1 more licensing collaboration in FY 2007
8

NCE Pipeline
Lead Target Indication Stage Status
GRC 3886
(Oglemilast)
PDE 4
Asthma,
COPD
Ph II
• Currently 2 Ph II trials underway for “exercise
induced asthma” and “antigen challenge”;
enrollment complete for the first study, top line
results likely by Nov FY07
• Phase II B for Asthma, COPD likely to begin
early next year
• Survey by R&D Directions classified GRC 3886
as one of the Great 100 Investigational Drugs
• $ 30 Mn expected from Forest Inc.,
• In discussions with potential European Partners
GRC 8200
DPP IV
Diabetes
(Type II)
Ph II
• 2 Ph II trials underway in South Africa and India
• Tied up with Merck KGaA of Germany in Oct 06
to develop, register and commercialize GRC
8200 and its combinations in US, Europe, Japan
• Glenmark retains exclusive marketing rights for
India and will co-commercialize the drug in RoW
• Total deal size is EUR 190 Mn, with EUR 25 Mn
as an up-front payment and the remaining
milestone payments upon successful
development, launch
• Upon commercial launch, Glenmark will supply
the API to Merck KGaA and will receive royalties
on net sales of the product
9

NCE Pipeline
Lead Target Indication Stage Status
GRC 6211 VR 1 Osteoarthritis,
Dental Pain,
Incontinence,
Neuropathic
pain
GRC 10693 CB 2 Neuropathic
pain,
Osteoarthritis,
Rheumatoid
Arthritis and
other anti -
inflammatory
pain
Ph I in
Nov 06
Ph I in
Dec /
Jan 07
• Exciting target – after Merck licensed
compound from Neurogen (currently in
Ph I) and Pfizer licensed compound from
Renovis (currently in pre-clinicals)
• Glenmark currently in discussions for
potential licensing. Timing of licensing
would depend on the deal terms and
ability to get co-promotion rights in some
of the regulated markets
• Glenmark could be 2 nd in class with this
compound
• Likely to be first in class with an oral CB2
Agonist. Currently Pharmos has an IV
compound in Ph II and GSK has an oral
compound in Ph I
• Very exciting target as non-narcotic,
peripherally acting, excellent pain-control
and without addiction potential
associated with Opoids. Potential
applications in Rheumatoid Arthritis.
• Currently in discussion with several bigpharma
companies for potential licensing
10

NCE Pipeline
Lead Target Indication Stage Status
GRC
10801
CB 1 Obesity Ph I in
Q4
FY07
• Though Rimonabant (Sanofi-Aventis) is approved
in EU, not an ideal candidate due to safety aspects
• Glenmark’s lead target profile will clearly
differentiate us on aspects of safety and drug
metabolism
• Though lead will enter Ph I in end-FY07, we expect
to be third/fourth in class with a clear differential
over existing compounds
GRC
4039
PDE 4
Rheumatoid
Arthritis,
Inflammation
Ph I in
Q1
FY08
• After the withdrawal/setback of COX-2s and the
void that exists in RA therapy, we believe this
could be a potential block-buster opportunity
• The lead is also showing promise in Animal
models in RA and other inflammatory conditions
11

Biologics research in Switzerland in early phase
Swiss Presence
• Diversifying research activities
to cover biologics
• Bioimprovics and New biologics
in the future – biosimilars to
build skill-sets in the near term
• Biologics Research Centre
established
• Employed scientists with
Biologics Research experience
from Switzerland and Europe
12

Generic Formulations
13

Overview: Market generics in the US market through own
front-end ; Acquire branded generic footprint in Europe
US Market
• Remain focused on generics
• Commercialize through own front end
• Combination of Make/Partner/Buy to
build depth of portfolio rapidly
– Own development
– Product development alliances
– Acquire registrations
– Licensing marketing rights
• Focus own development on specific
niches with greater
margins/sustainability: Dermatology,
modified release and controlled
substances
• Use own API for cost advantage
Europe Market
• Focus on select branded generic
markets: Spain, Italy, Central and
Eastern European Countries
• Acquire privately held front ends
– EUR 8-12 Mn Sales, cash generating
– Pipeline in place for next 2-3 years
– Good local brand equity
– High overlap in prescriber base with
our research focus
• File and launch branded generics
through own front-ends; also provide
dossiers to partners for non-core
markets
• Partner with players to fund high cost
developments – share marketing rights
14

USA – Generic Formulations
Current Status
Rapidly built up a generic sales front end in the USA with investments in
distribution, finance systems and sales team
Organic and inorganic build-up of portfolio
• Filed 10 ANDAs with US FDA towards FY07 filings (including partner filings
and 2 Derma products and 2 FTFs) till Oct 06.
In all, Glenmark has 25 ANDAs undergoing the US FDA approval process /
launch.
• 10 Generics on market – own and partnered
• Focus on niche segment of controlled substances and dermatology
6 controlled substances licensed: 2 on market and 1 to be launched in
November
Paul Cap partnerships to finance product development in dermatology
• Strategic co-development tie-ups concluded with Shasun and InvaGen:
Together accounting for 20 additional filings to which Glenmark has
marketing access
Excellent sales performance – locked in excess of 20-25% of the US market on
most products within first year of launch
Achieved operating cash break-even in Q4 FY06 – within 3 years of set-up
15

USA – Generic Formulations
Going forward: Multi-pronged build-out of Product Portfolio
Own Filings: File 15-20 ANDAs in FY07; Includes 3-5 XRs, 6 Derma
products and healthy & exciting mix of P-II, P-III & at least 3 FTF/P-IV
opportunities
Niche topical generics: working on 20+ steroidal, non-steroidal and
combination topicals
Niche controlled substances: Launched 2 controlled substances out of 5
products licensed from two US based firms; remaining to be launched by
Feb 07. Segment offers lower competitive pressures. Further licensing
efforts ongoing.
Partnerships: Already announced partnerships (Shasun and InvaGen) will
file over 8 generics with the US FDA in FY07.
Current status Target for FY 2007
Marketed 10
Under Approval 25
Total Filings 35
Own filings 21
Marketed 18-22
Under approval 38-40
Total Filings 56-62
Own filings 15-20
Expect to Exceed April Guidance for FY07
16

Europe – Start-up phase
Strategy & Progress
Entry through a niche / branded strategy
• Developing niche generic products, and partnering & creating alliances
with European companies
• Entered into a joint developing, filing and marketing deal for 8 derma products
with Merck Generics, Germany for the European region. The first of these
products has already been filed and is targeted to be launched in 2007; the
remaining products are forecasted to be launched by 2010.
• Expanding Inorganically in select branded generics markets in Europe
• Currently in discussions with Potential company for acquisition
Establish front-end
• Europe headquarters, Glenmark Pharmaceuticals (Europe) Ltd., set up in
2004
• Team building completed
• Potential front-end acquisitions under review
17

Latin America
Current Status
Integrated activities of acquired company, Servycal with Glenmark operations:
launched multiple Servycal products into Brazil; registrations in Rest of the
World
Expanded field force and also commenced commercial operations in several
additional countries: presence in 10 countries (including Brazil and Argentina)
in Latin America
Focused on specific therapeutic segments: Respiratory, Dermatology,
Gynaecology and Oncology
Filed 38 dossiers in Latin America and received approval to market 8 products
18

Latin America
Going forward
Expand presence in Oncology to other Latin American markets as well
as other key less regulated markets: use Argentina as the hub
File an additional 10 dossiers in markets across Latin America in the
second half of the year. Launch 10 new products in Brazil
Margin expansion through increasing revenue for products filed from
Indian parent
Divisionalisation for greater focus – focus on high margin segments
Achieve 100% growth in revenues over FY 2006
Expect to Meet Guidance for FY07
19

Less Regulated Markets
Current Status (Apr-Sep 06)
Plan going forward…
Posted 96% growth in revenues
fuelled by growth in Russia and
acquisitions in South Africa
Registered products in 2 new
countries and started operations in 4
Consolidate position in Russia
Expand in South Africa – use the India
advantage to file several products
Focus on high potential country markets
Completed 249 filings and received
137 approvals for products across
markets
Diversify portfolio to include an
oncology line – leverage the acquisition
of Servycal in Argentina
Consolidated position in existing
markets: increased field force,
launched many new products,
reviewed portfolio to meet local
requirements
Continue registration of products across
geographies
Achieve over 40% growth in revenues
over FY 2006
Evaluate acquisition candidates in highpotential
RoW markets
Expect to Meet Guidance for FY07
20

India Formulations
Current Status
Value growth of over 21% vis-à-vis IPM which grew at 16.2% (April – Sept
06, ORG-IMS Sept 06)
Ranked #2 in dermatology (after GSK), strong presence in over 10
segments including female healthcare, paediatrics, respiratory, antiinfectives,
cardiovascular, diabetology, oncology
Increased focus on chronic lifestyle diseases
Launched 17 new products and novel combinations in the first half of the
year
Created 7 retail divisions, 1 institutional division & 1 targeting family
physicians for improved focus
Grew field force (currently 1850 medical representatives) and increased
focus on productivity improvements
Driving supply chain cost down; new plant at Baddi for tax-efficiencies fully
on-stream
Commenced in-licensing and co-marketing tie-ups for novel products
21

India Formulations
Segment Contribution to Revenue: Diversified across therapies
August ORG MAT 2005 August ORG MAT 2006
5%
11%
5% 3% 3% 2% 3% 0%
31%
6%
6%
5% 4% 3% 2% 3%
30%
9%
12%
16%
9%
16%
16%
Derma Respiratory Anti-infectives Anti Diabetic
Pain Cardiac Gynaec G.I
Otologicals Stomatologicals Others
22

India Formulations
Moving forward, the plan…
Grow revenues by 15% p.a. - revised upwards from earlier guidance of 10%
Strengthen presence in respiratory, pain management and metabolic diseases
– in preparation for own NCE launches
Grow mass-market division, Milieus, through increased product launches,
sales force hires and geographic expansion
Increase in-licensing efforts for novel products to augment own pipeline
Continue launching differentiated branded generics; focus on building
power brands
Improve cost-efficiencies and cash-cycle management
Expect to Exceed April (Profit) Guidance for FY07
23

Active Pharmaceutical
Ingredients
24

Active Pharmaceutical Ingredients
Current Status
Plan going forward…
Revenue increase (28.7%) driven by:
• Growth in regulated markets
• New product introductions
Mix of revenues from segments:
• India and co-marketing – 55%
• Exports – 45%
Commenced commercial supplies of
DMFs during year; several samples,
validation, pivotal batches to global
generic players for their
ANDA/Dossier filings
Filed 6 DMFs in H1
Capacity de-bottlenecking initiated
for Ankleshwar, commenced preconstruction
work at new site
Aurangabad
Revenue growth in excess of 30%
Complete capacity expansion in
Ankleshwar, start construction in
Aurangabad
File 12-14 DMFs for the year
Commercial supplies to regulated
markets to increase dramatically with
several ANDAs/Dossiers filed and
pending from out 3rd party
customers
Develop several APIs annually to
provide cost and timing advantage to
complement our US and Europe
generic filings
Continue to be a preferred 3 rd party
API supplier to the generic industry
Expect to Meet Guidance for FY07
25

Financials and Projections
26

Financials and Projections
Performance in FY 2006
FY 2005 1 FY 2006 2 H1 FY 2007 3
(In USD Million)
Audited
Audited
Un Audited
Operating income (A)
139.87
171.09
97.90
Expenditure (B)
EBITDA (Operations) (C =A-B)
EBT (Operations) (D)
Other Income (E)
PBT (F=D+E)
PAT (G)
104.27
35.60
27.90
1.19
29.09
24.48
140.11
30.98
22.41
2.90
25.31
19.87
77.72
20.18
12.72
1.61
14.33
12.89
Basic Earnings per share (in rupees) 8.97 7.28 4.89
Diluted Earnings per share (in
rupees) 8.16 6.41 4.31
Note : 1. Average conversion rate for FY 2004-05 of Rs. 44.94 / USD 1.00
2. Average conversion rate for FY 2005-06 of Rs. 44.28 / USD 1.00
3. Average conversion rate for FY 2006-07 of Rs. 45.68/ USD 1.00 27

Financials and Projections – Net of Milestones
Projections (in Mn USD)
Revenues
In USD Mn*
164
248 334 CAGR ~ 42%
Business Mix
55
40
108
22
98
49
90
33
47
34
24
17 43
13
75
FY 2006 FY 2007 FY 2008
API
India Formulation
ROW
Latam
USA
Net Profits
15 35
55 CAGR ~ 91%
* In USD Mn (Assumed exchange rate of 44.28 for FY06 and 45.2 INR/USD for FY07 and FY08) 28

Financials and Projections
Milestone Projections (in Mn USD)
Revenues
In USD Mn* 7 31 69
GRC 3886
7 M USD
GRC 8200
31 M USD
All
Milestones
69 M USD
FY 2006 FY 2007 FY 2008
Note 1 : We believe that we will receive 3886 milestone in FY 2007; however due to Forest’s recent statement and
conservative accounting principles, we have taken the milestone into next year
Note 2 : Figures for Milestones now include only those pertaining to GRC 3886 (Oglemilast) and 8200
* In USD Mn (Assumed exchange rate of 44.28 for FY06 and ~45.20 INR/USD and ~ 1.26 EUR/USD for FY07 and FY08) 29

Financials and Projections – Summary
Revenues
In USD Mn*
Business Mix
24
13
171
7
22
90
Projections (in Mn USD)
17
279 397 CAGR ~ 52%
31
40
98
33
34
43
69
55
108
49
47
75
FY 2006 FY 2007 FY 2008
Net profit (Mn. USD) 20.5 62 115
EPS (INR) 7.28 23.60 43.78
P/E (Based on Rs. 393
Sh Price as of 26.10.06)
53.95 16.64 8.97
NCE
API
India Formulation
ROW
Latam
USA
CAGR ~ 137%
* In USD Mn (Assumed exchange rate of 44.28 for FY06 and ~45.20 INR/USD and ~ 1.26 EUR/USD for FY07 and FY08)
30

Summary
31

Summary-Key target milestones by FY 2007
Research
Conclude 1 more licensing deal for NCEs by End FY 2007
Aim to progress Phase II for GRC 8200 and GRC 3886; initiate Phase I trials
on 3 NCE compounds (GRC 10693, 6211 and 10801)
Formulations
APIs
Conclude 1 acquisition in Europe
In-license novel products/co-marketing deals
Market 18-22 ANDAs in the US market
File 15-20 solid dose ANDAs and another 6 topicals; include XRs and P-IV
opportunities
File 12-14 DMFs
Commence construction in Aurangabad, expand Ankhleshwar
32

Thank you
33