Glenmark

• unforeseen contingent risks or latent liabilities relating to these businesses that may only become
apparent after the merger or acquisition is finalised;
• integration and management of businesses, products, technologies or personnel may incur a
significant expenditure of operating, financial and management resources;
• retention of select personnel;
• co-ordination of sales and marketing efforts;
• diversion of management’s attention from other ongoing business concerns; and
• write-offs of investments.
If we are unable to integrate the operations of an acquired business successfully or manage such future
acquisitions profitably, our growth plans may not be met and our cash generation and profitability may
decline.
Future acquisitions could dilute our shareholders’ interest in us and could cause us to incur substantial debt,
expose us to contingent liabilities and could negatively impact our profitability.
If we do not successfully commercialize our products under development, or if our commercialization is
delayed, it will adversely affect our operating results.
Our future results of operations depend, to a significant extent, upon our ability to successfully
commercialize additional active pharmaceutical ingredients and formulation products. The development
and commercialization process is both time consuming and costly and involves a high degree of business
risk. In order to develop a commercially viable product, we must demonstrate, through extensive preclinical
and human clinical trials, that the products are safe and effective for use in humans. Our products
currently under development, if and when fully developed and tested, may not perform as we expect,
necessary regulatory approvals may not be obtained in a timely manner, if at all, and we may not be able to
successfully and profitably produce and market such products.
Furthermore, even if we are successful in developing a new product, that product may become subject to
litigation by third parties claiming our product infringes on their patents or may be otherwise unsuccessful
in the market place due to the introduction of superior products by competitors. Moreover, it may take an
extended period of time for our new products to gain market acceptance, if at all.
To develop our product pipeline, we commit substantial time, efforts, funds and other resources for
research and development, both through our own dedicated resources and our collaborations with third
parties. Our investments in new product launches and research and development for future products could
result in higher costs without a proportionate increase in revenues.
If we fail to accurately project demand for our products, we may encounter problems of inadequate
supply or oversupply, which would adversely affect our financial condition and results of operations, as
well as damage our goodwill and brand.
We project demand for our products based on rolling projections from our distributors, our understanding
of anticipated hospital procurement spending and distributor inventory levels. If we overestimate demand,
we may purchase more raw materials or components than required. If we underestimate demand, our third
party suppliers may have inadequate raw material or product component inventories, which could interrupt
our manufacturing and delay shipments, and could result in loss of business. If we under-stock one or more
of our products, we may not be able to obtain additional units in a timely manner, which could adversely
affect our goodwill and results of operations. In addition, if our products do not achieve widespread
3