Glenmark

SUMMARY OF BUSINESS
Overview
We are a research oriented, integrated pharmaceutical company incorporated in the Republic of India, with
a presence in numerous markets around the world. We operate a specialty/proprietary business (“Specialty
Business”) which is focused on drug development and branded generic drugs and a pure generics business
(“Generics Business”) which operates in the unbranded generic drug market and the active pharmaceutical
ingredients (“APIs”) market (each as more fully described below). We offer a range of products across
various therapeutic segments including dermatology, gynaecology, oncology, diabetes, pain management
and cardiovascular disease.
We were incorporated in India on November 18, 1977 and became a public limited company on May 20,
1996.
Our Specialty Business is operated through the Company and focuses on new drug development and
marketing of branded products. It is actively engaged in the development of new chemical entities
(“NCEs”) and new biological entities (“NBEs”) and to out-licence them at appropriate junctures. To this
effect, we have four research and development (“R&D”) centres, dedicated to the discovery and
development of NCEs and NBEs. As at March 31, 2009, we had successfully out-licenced three molecules
to four partners and had received a total of U.S.$117 million in up-front and milestone payments. Since
March 31, 2009 two of the four out-licencing agreements have been terminated. We have established
branded products in, niche therapeutic segments including dermatology, gynaecology, diabetes, pain
management and cardiovascular diseases. We recognise the value of investing in original research in order
to generate intellectual property assets that will sustain our revenues and earnings in a product patent
regime post the General Agreement for Trade and Tariffs. We believe that these intellectual property assets
allow us to establish our brands in regulated international markets and facilitate our growth as a global
company. Towards this end, we have invested steadily in building a pipeline of NCEs, new NBEs and
platform technologies. Currently, we have a pipeline of seven NCEs and two NBE in various phases of
development.
Within our Specialty Business, we operate a “branded generics” model. Our branded generics operations
focus on the sale of our own branded, off-patent drugs. Important aspects of this business include brand
building and prescription generation by way of marketing. We have a history of in-house brand
development and, since incorporation, we have continued to launch new products at regular intervals. We
first entered the dermatology market with the introduction of Candid Cream in 1979. We subsequently
broadened our product range by introducing Candid–brand extensions in other therapeutic segments. In
1987, we launched Ascoril, a cough expectorant. Our products Candid B, Ascoril, Telma and Telma H are
among our successful brands, ranked 106, 127, 140 and 204 respectively among the top 300 brands as of
July 2009. (Source: ORG IMS Health Incorporated SSA July 2009).
Our Generics Business, operated through GGL, focuses on the generic drug markets in the United States of
America (“United States”), parts of Europe and parts of Latin America, and on marketing and distribution
of generic formulations and APIs. APIs are the principal ingredients for finished dosages and are also
known as bulk actives or bulk drugs. APIs become formulations when the dosage is prepared for human
consumption using additional inactive ingredients either in oral forms such as tablets, capsules, dry syrups
or liquid orals or in sterile forms like injectable dry powder vials or liquid injectables. As of June 30, 2009,
we have launched over 45 products in the United States generics market and have a further 45 abbreviated
new drug applications (“ANDAs”) pending approval. We also generated, in October 2008, our first sales in
the United Kingdom – through sales of Perindopril tablets. In addition, we sell APIs in over 70 countries.
The Company has 33 subsidiaries, of which 32 are wholly-owned subsidiaries and, on a consolidated basis,
we have, globally, more than 5,500 employees, over 25 representative offices and 12 manufacturing
locations. We have over 2000 medical representatives located throughout India to market our products. We
have established subsidiaries in Romania (Glenmark Pharmaceuticals s.r.l) and Poland (Glenmark
Pharmaceuticals Sp. zo.o and Glenmark Distributors Sp. zo.o) and have established a presence in numerous
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