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Ranbaxy Laboratories Limited

To become a Research based International Pharmaceutical Company

UBS Global Generic and Specialty Pharmaceuticals Conference New York May 8, 2007

Safe Harbor
Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as will, aim, will likely result, would, believe, may, expect, will continue, anticipate, estimate, intend, plan,

contemplate, seek to, future, objective, goal, likely, project, should, potential, will pursue and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could

cause actual results to differ materially from those suggested by the forward-looking statements. These
risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. Ranbaxy does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

Key Drivers of Growth


Value of Drugs going off patent 2006 - 11
35

Significant patent expiries through 2011

30 25 20 15 10 5 0
2006 2007 2008 2009 2010 2011

$ Bn

Source : IMS

Increasing genericisation
France Spain Italy

Accelerating branded generics


Russia South Africa India

Rationalizing Healthcare costs - key priority for Governments

Key Issues
Increasing competition

Increasing focus on costs

Consolidation - Changing Landscape

Source: UBS, Business World, 30th October 2006

The India Pharma Story Davos 2006

Source Financial Times

Scientific Manpower Output


Number of Higher Education Institutions 05/06 18,123 +59% Number of Students enrolled in Higher Education Institutions

00/01
90/01 80/01

11,412
5,932 4,861

05/06
00/01 90/01 80/01

10,500
7,500 4,000 3,000

+40%

Source: Indian University Grants Commission

Source: Indian University Grants Commission

Number of Institutions courses 05/06 Pharmacy Medicine 1478 229 99/00 669 174 +120% +32%

PhD Degree awarded in Science 03/04 00/01 5408 3734 +44%

Physiotherapy

205

52

+294%

90/01
(USA 03/04

2950
25,000)

Source: Pavan Agarwal (2006) based on data from professional councils

Source: Indian University Grants Committee

The Education Advantage

Engineers/Science graduates p.a. India 0.7 mn, China 0.5 mn, EU 0.5 mn, USA 0.4 mn, Japan 0.3 mn

India in Global Generics


% Share of USA DMF filings

India 2004 2005 2006 Q406 27% 37% 44% 47%

China 9% 10% 14% 9%

Highest No
of DMF filings

Source: US FDA / J P Morgan Research

FDA Approved Plants in India

India in Global Generics


ANDA Filings in USA by Indian Companies
160

144

120

80

64 46

40

24

0 2002 2003 2004 2005

One in every four ANDAs filed by Indian Companies in top US FDA filers
(Source: KPMG)

No Chinese generic company has yet filed a US FDA ANDA but expected in 2008

Ranbaxy Today
Worldwide Presence

Amongst Top 10 Global Gx companies Ground presence in 49 countries, products sold in > 125 International business ~ 80% of sales Manufacturing locations in 11 countries
Global Sales
$ 1339

> 11,000 employees, 51 nationalities Strong Generics & Innovative research capabilities

$ 972

$ 553

2001

2003

2006

Highlights - 2006
$ Mn

2006 1339 16% 114

2005^ 1145 7% 60

% +17% +90%

Financials

Sales EBIDTA* PAT

Strong growth in USA

Markets

Leadership position in home market Robust performance in Branded Gx

markets
Exclusivity in Simvastatin 80 mg tablets Inorganic impetus

* % sales, ^ excludes sales from discontinued operations .i.e . Allied Businesses divested in 2005

Increasing Focus on Costs


Sales growth +17% SGA growth - Nil

Optimizing SG&A cost structures

2006

2005

Improving R&D cost efficiencies

% Bio-Studies (BA/BE^) conducted 2006 In-House Overseas CRO Indian CRO 71% 8% 21% 2005 28% 61% 11%

Advanced Markets

Low Cost Countries 20%


80%

Increasing sourcing from low cost countries .i.e. India & China

35%

65%

2005

2008*

* Estimate, ^ Bio-Analytical / Bio - Equivalence

Geographic Sales Split - 2006


Africa $85, +24% Europe $332, +23%*

6% 27%
Asia $367, +19%

25% Global Sales 2006 (US$ Mn) 33% DF API Total


Americas $440, +18%

1224 115 1339

+20% - 9% + 17%

Sales 2006 Dosage Forms US$ 1224 Mn

Key New Markets Canada, Spain, Italy, Australia & Japan


* Including CIS, RoW Rest of the World

Geographic Sales Split Q1 2007


Africa $85, +24% Europe $332, +23%*

7% 27%
Asia $367, +19%

31% Global Sales Q1 2007 (US$ Mn) 29% DF API Total


Americas $440, +18%

332 23 355

+30% - 25% + 24%

Sales Q1 2007 Dosage Forms US$ 332 Mn

* Including CIS, RoW Rest of the World

USA
Sales

Strong growth in USA, +15% Simvastatin 80 mg 180 day exclusivity - Market Share (MS) of 56% Increasing No of Prescriptions
- Q1 2005 - 10.8 Mn - Q1 2006 - 12.5 Mn - Q1 2007 - 14.1 Mn

$ 380 $ 332

+15%

Cumulative chain store listings at 1057

(44 added in Q1 07)


2006 2005 Brands Generics

Branded business growth at 20%

OTC

Source (Market Share) : IMS

USA Product Pipeline


Cumulative ANDA Filings

199 cumulative filings

Innovator Market Size


111 approvals - 88 ANDAs US$ 56 Bn 88 pending approval

- 20 FTF US$ 26 Bn
~ 20 FTF ANDAs 2006 - 27 filings - 10 approvals

Source (Market Size) : IMS

USA
Products pending approval
200 160

Second largest pipeline

# of ANDAs

120

80

40

0
Teva Ranbaxy Sun Mylan Watson DRL Barr Par

Source: Merrill Lynch Equity Research, February 2007

USA
Potential FTF Challenges
45

36

Second largest FTF pipeline

# of FTFs

27

18

yl an

so n

va

xy

Pa r

R L

ar r

an ba

Te

at

Source: Merrill Lynch Equity Research, February 2007

Su

European Union
Presence in 23 of the 27 EU countries
300

Sales
$ 267

Regulatory changes & price impacted


250

Western European markets


Strong product flow in 07 with multiple Day 1s
200

Romania
$ 214

150

Major countries
- Germany : AOK business - France - UK : Supplies from India : Gabapentin launch

100

50

RoE to maintain growth momentum

$ Mn

2006

2005

India
Fastest growing Company in India on MAT basis
(Source :ORG-IMS Mat Mar 2007) Ranbaxy GSK 5.0% Cipla 4.9% 5.1%

65 new products introduced in 2006


First to market NDDS In-licensed 10 6 8

Source : ORG IMS Audit Nov 2006, Moving Quarter Basis

No 1 NDDS Company with 8% MS. Contribution to total sales ~ 9% Dedicated task forces for Specialized & Chronic therapies

Chronic share contribution at 21% (2005 : 20%)


21 brands in Top 300 of Industry ( 2005 :19)
Source : IMS - ORG

Research & Development


New R&D facility for Drug Discovery Research (DDR)

R&D III

R&D I

R&D II

R&D IV

Research & Development


Dedicated Facilities for Innovative & Generics Research > 1400 R&D Personnel ( ~ 250 PhDs)

8 - 10 NCE molecules in pipeline


NDDS based products ( 4 platform technologies) R&D collaborations
Alliance / Collaboration in DDR Out-licensing in NDDS

Out-licensing
in DDR

Ranbaxy GSK Collaboration


Expansion of strategic alliance established in 2003 Take leads beyond candidate selection to POC* in man Therapeutic area focus of AI, Metabolic, Anti-inflammatory and Oncology

> US$ 100 mn in milestone payments and double digit


royalties on commercialization of a product Co- marketing rights in India First candidate identified for Respiratory Inflammation
Proof of Concept

Ranbaxy NCE Pipeline


Molecule
RBx 11160 (Malaria) RBx 10558 (Dyslipidemia) RBx 9841

Status
Under Phase II B trials (with Piperaquine) IND approval received from DCGI* (India) in May 06 Phase I trials

Remarks
Agreement for part funding by DST*

Out-licensed to PPD Inc.

Out-licensing opportunity

(Urinary Incontinence)
Candidate Selection
GSK Program - COPD / Asthma RBx 10017876 - Inhalation PDE IV B, COPD/ Asthma RBx 10020025 - Tiotropium like , MRA inh., COPD / Asthma RBx 10014255 - Anti infective, Macrolide / Ketolide RBx 10019821 - Diabetes, DPP IV

being explored

5 molecules under lead optimization including 1 with GSK

* Department of Science & Technology, Drug Controller General of India

Ranbaxy NCE Progress


Department of Science & Technology (DST) part funding on 3 molecules

Scientific Advisory Board comprising 6 globally


renowned scientists GSK 1 milestone triggered

Therapeutic Focus - Anti-infectives (Malaria) - Anti-inflammatory (COPD/ Asthma)

- Metabolic diseases (Diabetes)


- Oncology

Unprecedented : Precedented targets ratio 40:60

Generic Research & Development


27 ANDA filings in USA 33 Filings in the European Union
2006 Product Filings & Approvals
Dosage Forms
Key Country / Region USA European Union BRICS Rest of World Filings 27 33 95 462 Approvals 10 32 71 474 Filings 15 100 14 42

API
Approvals 5 117 12 22

Total

617

587

171

156

Excludes India for API approvals, EU filings and approvals include Mutual Recognition Procedure (MRP) and De-centralized Procedure (DCP) filings and approvals.

Recent Acquisitions & Alliances

Terapia (Romania)

Zenotech (India)
Krebs (India) Jupiter Biosciences*(Ind.) Cardinal Drugs (India) Auto-injector Tech.(USA)

Be-Tabs (South Africa)


Allen (Italy) Ethimed (Belgium) Mundogen (Spain)

* Subject to due diligence

Niche Alliances
Increasing focus on chronic / lifestyle diseases segment High entry barriers - technology & resource intensive

Zenotech Bio-similars & Oncologics

Jupiter* Peptides

Krebs Fermentation based products

* Subject to due diligence

Enhancing In-house Technologies


Penems
Market size worldwide of ~ US$ 1.5 bn Imipenem + Cilastatin launched in India, China, Africa, APAC Key US / EU launches beginning 2009

Limuses

Global market size in excess of US$ 1.5 bn

Ex - US / EU launches beginning 2008


Well placed for US / EU launches

Worldwide market in excess of US$ 5 bn

Oral High Potency Non-cytotoxics

Patents expiring from 2008 onwards Day 1 launches planned for US / EU

Financials
Figures in US$ Mn

Particulars Sales EBITDA


% sales

2006
1339 207
16%

%
17% 144% 481%

Q1 2007
355 43
12%

%
24% 35% 102%

OPBT*

131

36

PBT

144

226%

37

94%

PAT

114

90%

29

81%

* 2005 sales excludes sales from discontinued operations .i.e Allied Businesses. OPBT Operating profit before tax

In Summary
A strong 2006 performance on all parameters Buoyant performance across key geographies Continuing focus on cost optimization Robust product flow Growth through organic & inorganic Discovery pipeline progressing well Global Generic rank 9th / 10th

Thank You

Ranbaxy at the UBS Global Generic and Specialty Pharmaceuticals Conference New York May 8, 2007