Overview of Shanghai Roche Pharmaceuticals Ltd.

Overview of
Shanghai Roche Pharmaceuticals Ltd.
Media Visit to Roche in China
Shanghai 28 October 2005
Antonio Chow
General Manager
Shanghai Roche Pharmaceuticals Ltd.

Milestones for Roche in China
• 1994: Roche sets up its first joint-venture in China, Shanghai Roche Pharmaceuticals Ltd.
• 1995: Roche China Ltd. and three Roche vitamin companies are established.
• 1999: China's President Jiang Zemin visits Roche headquarters in Basel, Switzerland.
• 2000: Roche Diagnostics Shanghai Co. Ltd. is founded.
• 2001: Roche's three vitamin companies in China are merged.
• 2002: Roche spins off its vitamin business.
• 2003: Roche wins the industry prize for "Most Satisfied Employees" award.
• 2004: Roche sells its OTC business to Bayer to focus on pharmaceuticals and diagnostics.
10th Anniversary of Shanghai Roche Pharmaceuticals Ltd.
Ground breaking of Shanghai Roche High-Potent Production Plant
Roche R&D Center China Ltd. is established
• 2005: Roche Board of Directors and Corporate Executive Committee members visit China.
The inauguration ceremony of Shanghai Roche High-Potent Production Plant will be
held on October 29.

Roche in China
Roche branch office in Shanghai circa 1920’s Roche products sold in China in 1920’s

Roche in China
Former President
Jiang Zemin visited
Roche Headquarters
Basel in March 1999.

Roche in China
Roche Board of Directors and CEC
members visited China in September 2005
and met with Mr. Bo Xilai, Minister of the
Ministry of Commerce and Mr. Shao
Mingli, Commissioner of SFDA in Beijing.

Shanghai Roche Pharmaceuticals Ltds (SRPL)
Company Profile
• Established: May 1994
• Investment: 45 Mio US$
• Chinese partner: Shanghai Sunve
Pharmaceuticals Ltd.
• Roche share: 70%
• Employee: 1,000
• Sales Turnover (2004): 1.2 Bio RMB

!
SRPL
China Coverage
" Urumuqi
r Zone Office 4
!
"
#
Branch Office 15
Office 23
Visiting city 21
Total 63
" Xining
" Lanzhou
!
!
Xian
#
#
# # #
" Haerbin
" Changchun
Shenyang
Dalian
r Beijing
# Tianjing
! " Qingdao
" Taiyuan " Shijiazhuang
Jinan
# # #
#
Zhengzhou
#!
!
#
"
!
Changzhou
Wuxi
Nanjing#
Suzhou
! !
r Shanghai
Hefei
# rHangzhou
Wuhan
Ningbo
!
Chengdu
"
" Changsha
Chongqing
Zhaoqing
Kunming
" Nanning "
"
Foshan
" Zhongshan
Shenzhen
r g
Zhanjiang
" #!
Guangzhou
" Zhuhai
" Haikou
!
!
# # ## # ##
# #
#
# ###
#
!
" Wenzhou
" Fuzhou
" Xiamen

SRPL
Sales Share of Main Products (PRC)
Rocephin
Cellcept
Madopar
Roferon-A
Furtulon
Inhibace
Dormicum
Xenical
Xeloda
1990
1999
2000
2001
2002
2004
Others
* Excluding HK Sales
不 包 括 香 港

SRPL
Main Product Categories
Prescription Drugs
OTC 非 处 方 药

Roche Pharmaceuticals in China
Product Portfolio and Market Presence
Total China
Market Growth (MAT 2005 Q2)
50.0
40.0
30.0
20.0
10.0
Top 10 Therapeutic Class - IMS MAT 2005Q2 (Total China) vs. Roche Portfolio
Blood Forming Organs
IMS Share 4.3% Growth +33.6%
Roche Share 0.8% Growth -37.8%
Respiratory
System
Share 1.9%
Growth +34.9%
Musculo-Skeletal
Share 2.0%
Growth +25.9%
CNS
IMS Share 7.1%
Growth +29.2%
Roche Share 9.2%
Growth +21.8%
Hospital Solutions
Share 6.5%
Growth +35.9%
Average Share 9.5 %
Cardiovascular System
IMS Share 11.9% Growth +32.1%
Roche Share 3.9% Growth +26.9%
Others
Share 7.4%
Growth 33.6%
Anti-Neoplast & Immunomodule
IMS Share 9.2% Growth +34.8%
Roche Share 55.3% Growth +31.9%
Alimentary & Metabolism
IMS Share 12.9% Growth +31.9%
Roche Share 9.6% Growth +13.0%
`
Average Growth +30.0%
Systemic Anti-Infectives
IMS Share 31.9% Growth +25.5%
Roche Share 21.2% Growth +2.2%
0.0
0.0 10.0 20.0 30.0 40.0
Market Share (MAT 2005 Q2)

Roche Pharmaceuticals in China 16 Cities
Top 10 Pharmaceutical Companies – IMS MAT 2005Q2
PFIZER GROUP
ROCHE GROUP
NOVARTIS GROUP
ASTRAZENECA GROUP
JS.YANGZIJIANG FTY
BAYER GROUP
M.S.D. GROUP
ELI LILLY GROUP
B.MYERS SQUIBB GRP
GLAXOSMITHKL GROUP
Million RMB
643
611
611
601
601
788
773
770
929
1,174
MAT Q2 2005
MAT Q2 2004
0 200 400 600 800 1,000 1,200 1,400
Market Growth +/-%
Share % vs LY
EV
2.78 26.76 100.10
2.20 18.31 93.42
1.87 12.39 88.75
1.83 36.16 107.52
1.82 23.36 97.41
1.52 23.77 97.73
1.45 16.87 92.28
1.45 17.29 92.62
1.42 18.37 93.47
1.42 -2.97 76.62
Total +28.51%
+26.64%
* Top 16 cities represent 42% of total China pharmaceutical market.

Roche Pharmaceuticals in China 16 Cities
Top 10 Pharmaceutical Products – IMS MAT 2005Q2
Ranking
QTR MAT
1
4
2
3
5
8
6
7
9
10
1
2
3
4
5
6
7
8
9
10
Zuo Ke (JS.YZJ Factory)
FLUOROQUINOLONES, ANTIBIOTICS
Glucobay (Bayer)
ORAL ANTIDIABETICS
Kai Shi (BJ.Taide)
CARDIAC PRODUCTS
Cellcept (Roche)
75
IMMUNOSUPPRESIVE AGENTS
73
ANTIULCERANTS
52
IJ-CEPHALOSPORIN, ANTIBIOTICS
59
CALCIUM ANTAGONISTS, CARDIOVASCULAR
54
IMMUNOSUPPRESIVE AGENTS
51
Losec (Astrazeneca)
Rocephin (Roche)
Norvasc (Pfizer)
Sandimmun neoral (Novartis)
Sulperazon (Pfizer)
IJ-CEPHALOSPORIN, ANTIBIOTICS
Tienam (M.S.D.)
CARBAPENEMS
81
78
73
48
100
60
RMB(Mil)
20
233
225
204
204
189
352
280
278
269
259
0 50 100 150 200 250 300 350
QTR
MAT
MS % MS %
0.70 + 5.80% 0.83 +16.87%
0.64 +25.77% 0.66 +19.04%
0.69 +36.30% 0.66 +32.12%
0.66 +29.38% 0.64 +23.80 %
0.64 +31.26% 0.61 +27.68%
0.46 + 5.27% 0.55 + 9.94%
0.52 +18.57% 0.53 +19.89%
0.47 +17.29% 0.48 + 8.05%
0.45 +13.99% 0.48 +27.03%
0.42 +23.42% 0.45 +16.44%
Total +25.44% +26.64%

Roche Pharmaceuticals in China - Business Landscape
China Economic Environment
12.0%
10.0%
Key Economic Indicators
Source: Citibank Forecasts + Roche Shanghai Finance
CHINA:
Sustained Economic Growth
8.0%
6.0%
Hong Kong:
Economic Rebound
4.0%
2.0%
0.0%
-2.0%
CHINA 3x10
-4.0%
-6.0%
GDP in USD Bio 1997 2005 F 2007
China 838 2,010 2,568
Hong Kong 161 174 195
1997 1998 1999 2000 2001 2002 2003 2004 F 2005 F 2006 F 2007
PRC GDP Growth 9.6% 8.8% 7.1% 8.0% 7.3% 8.0% 9.5% 9.5% 9.0% 8.5% 8.5%
PRC Inflation 2.8% -0.8% -1.4% 0.4% 0.7% -0.8% 1.2% 3.9% 3.5% 3.0% 3.0%
HK GDP Growth 5.1% -5.0% 3.4% 10.2% 0.5% 1.9% 3.2% 8.1% 4.5% 5.0% 5.5%
HK Inflation 5.8% 2.9% -4.0% -3.8% -1.6% -3.0% -2.6% -0.4% 1.4% 3.0% 3.0%

Roche Pharmaceuticals in China
Clinical Trials
• In less than a decade, China has built a substantial basis for
conducting high quality and successful clinical trials.
• Shanghai Roche has been conducting global clinical trials in China
since late 1990s.
• Data generated from China have been included in global filing
dossier and accepted by other major regulatory bodies.
• One of the investigational sites in Shanghai was successfully passed
US FDA inspection last year for one of the Roche studies.

SRPL
Social Responsibility
1998-2000
2000
Donated 6Mio RMB cash and
medicines to earthquake, flood,
snowstorm stricken areas in China,
also to patients with financial
difficulties in poor areas
Sponsor 300,000 US$ to China
Human Genome Center Shanghai
Branch for cooperative project.
2000-
Contributed to local education
business by sponsoring relative
education program in CEIBS with
the amount of 10 Mio RMB

SRPL
Social Responsibility
2002
2003
Roche staff raised 300,000RMB to
build “Tengfei Primary School”
Roche, its staff and its business
partners raise another 450,000RMB
to “Tengfei School”
Roche donate 10Mio RMB cash
and medicine to medical workers
fighting with SARS
2004
Make further donation up to
500,000 RMB to the SanYa Tengfei
Primary School

Roche’s commitment to China
As one of the earliest
multinational companies
entered China, Roche
CEO is privileged to be
the member of IBLAC.
With the proposals on
investment environment
improvement and China’s
healthcare system reform,
Roche is committed to be
the partner in growth with
China.

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