Marksans Pharma Limited
Investor Presentation
February 2008
Disclaimer
 Materials and information provided during this presentation may contain ‘forward-looking
statements’. These statements are based on current expectations, forecasts and assumptions
that are subject to risks and uncertainties which could cause actual outcomes and results to differ
materially from these statements.
 Risks and uncertainties include general industry and market conditions, and general domestic and
international economic conditions such as interest rate and currency exchange fluctuations.
Risks and uncertainties particularly apply with respect to product-related forward-looking
statements. Product risks and uncertainties include, but are not limited, to technological
advances and patents attained by competitors, challenges inherent in new product development,
including completion of clinical trials; claims and concerns about product safety and efficacy;
obtaining regulatory approvals; domestic and foreign healthcare reforms; trends toward managed
care and healthcare cost containment, and governmental laws and regulations affecting domestic
and foreign operations.
 Also, for products that are approved, there are manufacturing and marketing risks and
uncertainties, which include, but are not limited, to inability to build production capacity to meet
demand, unavailability of raw materials, and failure to gain market acceptance.
 The Company undertakes no obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise.
2
Contents
Section 1
Highlights
Section 2
Industry Overview
Section 3
Company Overview
Section 4
Strategy
Section 5
Financial Highlights
3
Highlights
Mumbai based vertically integrated player with strong presence across
the entire value chain - APIs to formulations to biopharmaceuticals
Incorporated in 2001 as a wholly owned subsidiary of Glenmark
Pharmaceuticals Ltd. and later spun-off into a separate entity in March
2003
Straddles across key therapy areas and markets its products in both
evolving and developed markets
Actively engaged in R&D and offers CRAMS to global pharmaceutical
companies
Operates world class manufacturing facilities for API and Formulations,
built per US FDA guidelines and approved by UK MHRA, Australia TGA
and Brazilian ANVISA health authorities
Reported sales of USD 63.4 million and net profit of USD 1.75 million in
FY2007
4
INDUSTRY OVERVIEW
The Global Pharmaceutical Market
Worldwide pharmaceutical market expected to
grow at 5-6% to USD 665-685 billion in 2007
Moderate growth in the US and EU markets
Asia and Latin America are growth drivers
Expiry of patent protection driving Generics
market – In 2008, products with sale value of
more than USD 20 billion are likely to lose
patent protection
Leading Therapy Classes by Global Sales, 2006
Sales (USD
Y-o-Y
billion)
Growth (%)
Lipid Regulators
32.5
7.5
Oncologics
34.6
20.5
Respiratory Agents
24.6
10.4
Acid Pump Inhibitors
24.1
3.9
Antidiabetics
21.2
13.1
Antidepressants
20.6
3.3
Antipsychotics
18.2
10.9
Angiotensin-II Antagonists
16.5
15.2
Erythropoietin Products
13.9
11.8
Anti-epileptics
13.1
10.8
Total Leading Therapy Classes
184.3
10.7
Global Pharmaceutical Sales by Region 2006
Audited World Therapy Class
2006 Sales
(USD billion)
% Growth
North America
289.90
8.00%
Europe
181.80
4.80%
Japan
56.70
-0.70%
Asia, Africa & Australia
52.00
9.80%
Latin America
27.50
12.90%
Total IMS Audited
607.90
6.50%
Market
Source: IMS Health
6
Indian Pharmaceutical Market
India is one of the fastest growing large
pharmaceuticals market
India is also the world’s fourth largest
producers of pharmaceuticals by volumes
Competitive Advantage:
Projected Indian Pharmaceutical Market, 2007-2012 (USD
Billion)
20
14.4
15
10.4
11.3
2007
2008
12.3
12.4
2009
2010
15.6
10
5
Upfront capital cost lower by 25-30%
0
Clinical trials cost 50% less
2011
2012
Source: Espicom
Drug production cost lower by 40-50%
Contract Research & Contract Manufacturing
(CRAMS)
India Pharmaceuticals Market 2007
India has emerged as a key destination for
CRAMS
Bulk-drug
22%
Global manufacturing outsourcing opportunity is
estimated at USD 20 billion
Formulations constitute about 78% of total
sales. 32% of formulation sales are exports
Formulations
78%
Source: www.indiahealth.com
7
COMPANY OVERVIEW
Marksans Pharma Limited
Marksans Pharma Limited is a niche Formulations, Bulk drugs and Biopharmaceutical
player with presence across the entire value chain
Incorporated in 2001 as a wholly owned subsidiary of Glenmark Pharmaceuticals Ltd. and
later spun-off into a separate entity in March 2003
The Company straddles across key therapy areas and actively engages in R&D and offers
CRAMS to global pharmaceutical companies
The Company is listed on The Bombay Stock Exchange and the National Stock Exchange
of India Limited with a market capitalisation of Rs 9.24 billion (USD 234 million) as of 8
February 2008
The Company has an employee strength of 1296 out of which more than 100 are engaged
in R&D
Reported sales of Rs 2,399 million (USD 60.7 million) and net profit of Rs 69.3 million
(USD 1.75 million) in FY2007
9
Business Overview
API
Manufacturing
DOMESTIC MARKET
FORMULATIONS
Pharmaceuticals + Biologics
BIOLOGICS
Marketing
Niche Focus
Large Product portfolio
NDDS, NCE
In-licensing
A Complete R&D Player
ANDA Filings And
Dossier Development
DMF/COS Filings and
Dossier Development
Clinical Trials
Custom Chemical
Synthesis
Formulation
Development & NDDS
Drug Discovery &
Development Services
10
EXPORT MARKET
Supply tie-ups
Joint marketing
CRAMS
Out-licensing
Business Segments
Revenues (Rs millions)
2000
FORMULATION
1619
Significant presence in major therapeutic areas in the
domestic market with over 250 products
1600
Strong marketing capabilities with 450 representatives
across India
800
Foreign markets: US, EU, UK, Australia, and other
emerging markets. Plans in place to tap huge Russian
and CIS markets
Collaborations: MPL’s products are available through
collaborations with big MNC companies
1355
1200
1363
1036
400
0
FY2006
Bulk Drugs
250
Combination of organic and inorganic growth
100
Formulation
Revenues (Rs millions)
300
ANDA filings: List of proprietary products identified which
are to be developed post patent expiry - Is filing 10
ANDAs with US FDA by June 2008
FY2007
203
216
182
200
150
50
28.2
0
ACTIVE PHARMACEUTICAL INGREDIENT
FY2006
FY2007
Second largest
producers of Ciprofloxacin and
Bulk Drugs
Formulation
Ranitidine in India
Provides contract manufacturing services to world’s leading generic pharmaceutical companies
Key Focus Area: CVS, Ant diabetic, CNS, Pain management& Gastro Intestinal
Expanding production in CNS, CVS, anti-diabetic and pain management therapeutic segments
Capacity expansion already underway to meet domestic demand
11
Business Segments
RESEARCH AND DEVELOPMENT
State of the art R&D laboratory at Goa (approved by DSIR) and New Delhi for innovation in the
area of new molecule and formulation development and drug delivery
New research laboratory set up at Kurkumbh to provide chemical synthesis and development
services
The company is also working towards developing API's which are likely to go off patent in the next
few years as their market size is estimated at USD 20 billion
Joint product development pacts in place with reputed international and local institutions for
biopharmaceuticals
GENERIC DRUG DEVELOPMENT PIPELINE
Filing 10 ANDA’s with USFDA by June 2008,
having aggregate market size of 17 billion in
US, into CVS, CNS, Pain management &
Gastro Intestinal Segments
12
Manufacturing Capabilities
FORMULATION
Marksans state of the art manufacturing facilities in Goa are
of international standards adhering to stringent quality norms
and are USFDA compliant. Its world class manufacturing
capabilities cater to APIs as well as formulations.
Adhering to USFDA guidelines with approvals from UK
MHRA, Australian TGA and Brazilian ANVISA health
authorities
One of the biggest manufacturing facility for soft gelatin
capsules and tablets in Asia (Capacity of 2.50 billion
tablets/line/annum for tablets, 4.8 billion capsules / line /
annum) respectively
ACTIVE PHARMACEUTICAL INGREDIENT
Marksans has two large multi-product API manufacturing
facilities located at Kurkumbh, Maharashtra which are rebenchmarked to CGMP standards
USFDA approval expected in next 9-12 months
MPL has increased the annual capacity of its flagship
product Ciprofloxacin from 600 MT to 1000 MT and for
Ranitidine from 360 MT to 600 MT
13
Recent Acquisitions
HALE GROUP - UK
The Company has entered into a share purchase agreement with UK's Hale Group to acquire its
entire share capital, along with its subsidiary company Bell Sons & Co (“Bell”)
Bell is a well-established manufacturer of a broad range of OTC pharmaceuticals having full approval
of the UK MHRA and currently holds 38 product licenses. Licensed products contribute over 45% of
Bell’s total turnover
The company clocked a turnover of £ 8.03 million and £ 8.94 million respectively for FY’05 and FY’06
(year ending December). The EBITDA margins for the said period stand at 12% and 14% respectively
Rationale: Bell is an established player with strong goodwill
Access to the regulated UK & Europe market
Synergies and cost saving in manufacturing and R&D
NOVA PHARMACEUTICALS - AUSTRALIA
MPL acquires Nova Pharmaceuticals (NP), a company that specializes in R&D and marketing of
generics
NP has a basket 14 products, with additional 25 products filed for TGA approvals
NP has presence in the top pharmacies and major chain stores for the supply of generics and OTC
Rationale: Gain foothold in a key pharmaceutical market
New product introduction and cost saving by shifting production to India
14
STRATEGY
Vision
Global strategy – global alliances, innovator partnerships
collaborative R&D, licensing deals, M&A
Multi-product, multi-specialty,
multi-geography, fully
integrated enterprise
Business expansion – CRAMS
Product Innovation – reformulation,
Controlled release
Therapeutic area expansion – critical care, respiratory,
CNS, anti-infectives, immunology, life style, neutraceuticals
Product expansion – NCEs, biologics,
controlled /high potency substances
Geographic expansion – Semi
and Regulated Markets
Niche Player
Enterprise Maturation
Current State
Integrated Player
Future State
16
Vertical Integration
Innovation & Value Chain Traversal
Strategy aimed at differentiation, high margin niche areas, life cycle extension and
product innovation
Geographical Strategic Goals
Europe, US & Emerging Markets
Become preferred manufacturing partner for large MNC pharma companies
Establish a strong presence in the US generic pharmaceutical market through acquisition of a
target company to exploit MPL’s low cost API, drug formulation and R&D capabilities
Focus on building IP assets specially in Niche dosage forms
Out-License IP to drive growth / scalability
Build and launch portfolios of generic products in niche segments, technology driven products.
In parallel, seek out newer markets with potential
Build significant OTC presence in regulated markets
Integrating & leveraging acquired company strengths to fuel internal growth
India
Become a top 10 fully integrated pharmaceutical company with a diverse portfolio of ethical,
branded, generic and OTC products
Continue building presence in speciality markets such as oncology and CNS
Continue evolution as an innovative developer of patented, NDDS, and in-licensed products
(RISUG, GCSF, EGF) and post-patent products
17
Key Growth Drivers
Rapid filing of ANDAs / MAs, DMFs/COSs into US, Europe & Emerging Markets
Expand CRAMS services in the Regulated Markets
Acquisitions of growing, profitable pharmaceutical companies and/or products.
Commercialize strong pipeline of over 10 new API products
Leverage economies of scale and integrating API and formulation manufacturing
Pursue additional product in-licensing opportunities for domestic markets
Enter into out licensing arrangements with big pharma company in US, Europe to
manufacture & market post patent & off patent drugs
18
Strategy
THRUST ON
EXPORTS
DOMESTIC
FORMULATIONS
BIO
PHARMACEUTICALS
CRAMS
R&D – NCE
PIPELINE
19
Thrust on Exports
VISION: To become a leading player for APIs and formulations supply to global
companies
COMPETITIVE EDGE: Vertical integration from R&D to API to formulations
NORTH AMERICA: Aggressive roadmap to develop sales and distribution network
Remain focused on high value of generics
Organic and inorganic buildup of portfolio
EUROPE: Tie-ups in place with top 7-8 generic formulations companies for CRAMS
Focus on selected market – UK, Germany, Central and East EU
UK Acquisition: £8-10m sales with strong product pipeline and brand equity
 AUSTRALIA:
Acquired a marketing company with basket of 14 products, with
additional 25 products filed for TGA approvals

EMERGING MARKETS: Expanding to countries and across products
20
Domestic Formulations
CURRENT STATUS AND STRATEGY
Mark Remedies caters to the GI disorders and Respiratory infections segment.
This is a mass segment category with promises of large volumes
Enhance presence in Oncology and creating a base in lifestyle therapeutic
segments
Focus on Biotechnology drugs, antineoplastics and immunomodulators
In-licensing to be one of the major growth drivers
21
Biopharmaceuticals
CURRENT STATUS
Number of in-licensing / joint R&D agreements in place with international
agencies and local research institutes for product development and / or
marketing
Some of the products approved / under development
Interferon Alpha 2b: world market ~ USD 1 billion
Granulocyte Colony Stimulating Factor (GCSF): World market ~ USD 2 billion
Epidermal Growth Factor (EGF) - NDDS
Interlucin 2
STRATEGY
Aggressively scouting for more in licensing opportunities with the innovator
companies
Increase the marketing infrastructure on PAN India basis to market the products
22
Research & Development
~ 45 products already developed. > 40 products under development
Building IP assets and registering them internationally
Focus on end to end solutions, to develop core API’s for ANDA products inhouse.
Concentrating on development of Niche Liquid gel products
Leveraging expiry of patents: developing products for growth areas such as
cardiovascular and anti diabetics
Tie ups in place with big MNC & Generic companies for first to launch status
on many products following patent expiration
Joint product development pacts in place with reputed international and local
institutions for biopharmaceuticals
MPL is already working on two NCEs in collaboration with Original patent holders,
along with Indian Council of Medical Research, Govt. of India
23
CRAMS
CURRENT STATUS
The Company has alliances with the top 7-8 MNC generic companies for
contract manufacturing of ~ 30 generic products for the European markets
Licensing agreements in place with numerous companies for development and
supply of products for 7-10 years
STRATEGY
The company plans to enhance its product portfolio with the addition of 12-13
products p.a.
Offering CRAMS services for existing and emerging markets is envisaged as
one of the major driver and revenue earner for the company
24
FINANCIAL HIGHLIGHTS
Financial Highlights
PROFIT AND LOSS
Particulars
FY2005
FY2006
FY2007
9M FY2008
USD Millions
(Audited)
(Audited)
(Audited)
(Unaudited)
Total Income
62.78
76.49
63.39
42.01
Total Expenditure
51.78
63.82
56.21
34.28
EBITDA
11.00
12.66
7.18
7.73
Depreciation
1.76
2.04
1.85
1.60
Interest
2.94
2.68
2.91
2.55
PBT
6.29
7.95
2.42
3.58
Tax
1.13
2.15
0.67
0.35
PAT
5.17
5.79
1.75
3.24
EBITDA Margins (%)
17.5%
16.6%
11.3%
18.4%
PAT Margin (%)
8.2%
7.6%
2.8%
7.7%
Ratios
USDINR 39.5
26
Financial Highlights
BALANCE SHEET
USD Millions
FY2005
FY2006
FY2007
Shareholders' Funds
25.82
30.38
32.15
Secured Loans
21.01
20.51
25.57
Unsecured Loans
1.01
56.46
55.19
Total Debt
22.28
76.96
80.76
Total Liabilities
48.10
107.34
112.66
Net Block
25.82
31.65
35.19
Investments
0.00
0.00
0.00
Inventories
12.41
20.00
31.14
Sundry Debtors
14.43
12.91
13.42
Cash and Bank Balance
2.53
50.13
40.00
Loans and Advances
3.29
3.29
5.06
32.41
86.08
90.13
Current Liabilities
9.11
8.35
11.14
Provisions
0.51
1.27
0.25
Misc. Expenses
0.51
0.51
0.51
Net Deferred Tax
-1.01
-1.52
-2.28
Total Assets
48.10
107.34
112.66
Total Current Assets
USDINR 39.5
27
Background for FY2007 Results
KEY REASONS
Stiff competition in APIs namely Ciprofloxacin and Ranitidine due to dumping from China
Price erosion ~ 35%
Reduced production in these APIs resulted in decrease in sales
STRATEGY ADOPTED
COS approval obtained for Ciprofloxacin, expected for Ranitidine & Metformin shortly to enable exports
to Europe with 50% more margin
More high value products like Losartan, Metformin, Naproxen, etc with COS Filings
US FDA approval expected for all these products
Focus on high growth life style segment formulations mainly in domestic market, which are exhibiting
strong growth rates
Integrating API operations with formulations
OUTCOME
Extremely bullish trend in domestic life style segment
Rise in prices of Ciprofloxacin, Ranitidine in China
MPL’s CRAMS business in Europe is growing
20 ANDA filings expected by Dec 08 and 30 by Dec 09, resulting in Business from USA in excess of
US$ 100 million in FY 2011-12
Exclusive Out licensing arrangements with leading generic companies to give a boost to its Exports
28
Equity Capital Structure
Shareholders fund
USD 32.15 million
No. of issued Shares
35.94 million
Listed at
BSE and NSE
Market Price
Rs. 257 as on 8 February 2008
Market Capitalisation
Rs. 9.24 million (US$ 234 million)
52 weeks high / Low High
High: Rs 351.6 Low: Rs 44.2
Share Holding Pattern
(31 December 2007)
Category
Holding
Promoters
47.41%
Banks/FIs/MFs
1.46%
Corporate Bodies
27.61%
Public
23.52%
Total
100.00%
USDINR 39.5
29
Investment Highlights
 Fully integrated company with strong presence across entire value chain from
APIs to formulations to biopharmaceuticals and across key therapy areas and
both the evolving and developed markets
 Strong R&D focus strategically positions MPL in the new patent regime
 Aggressive foray into new geographies and regulated markets through
acquisitions (UK and Australia) to expand global footprint
 Focus on high-growth therapeutic segments such as lifestyle, anti-diabetic,
cardiovascular to advantage from strong demand from US and EU markets
 Thrust on Biotechnology: Entered the lucrative segment with 8 products in the
pipeline of which 3 are already approved by Drug Controller of India
 World class manufacturing facilities and strong marketing and distribution
network in India
30
THANK YOU
31
APPENDIX
Company’s Operations
Formulations
API
R&D
 World class manufacturing facilities:
approvals - UK MHRA, Australian TGA.
US FDA approval expected shortly.
 Tie-up with big MNCs globally for
offering CRAMS.
 Product
basket
covering
wide
therapeutic areas.
 Developing post-patent products mostly
supported by in house API’s for global
markets.
 Out-licensing tie-ups with big pharma
companies for long term manufacturing
and marketing.
 Setting up own front ends in major
global markets – US, Europe, Australia,
Russia and emerging markets.
 Strong marketing presence in the
domestic markets - wide range of over
250 products in the domestic markets.
 Speciality segment focus in domestic
market.
 Specialised state of the art Soft gel
manufacturing plant.
 Expanding registration process across
geographies
 Two manufacturing facilities.
 Strategy to focus on end-to-end
solutions and to develop APIs for
ANDA products in-house.
 Rapidly filing COSs/DMFs into
Europe and US markets.
 Exporting its products to more than
30 countries.
 Provides
API
contract
manufacturing to many of the
world’s
leading
generic
pharmaceutical companies.
 Key focus areas
• CVS
• Anti-diabetic
• CNS
• Pain Management
• GI
 Expanding its API business by
shifting
from
predominantly
domestic
market
to
highly
regulated markets of USA and
Europe.
• DSIR approved research labs in
Goa, Pune and New Delhi.
32
• Key focus on:
• Building IP assets and their
global registration.
• End to end solutions , to
develop core API’s for ANDA
products in-house.
• Development of technology
driven products for the global
markets (Sustained release,
extended release and Soft gel
delivery systems).
• Development of Niche Liquid
gel products (Differentiating
plank as very few key players
offer the same).
• Tie ups in place with big
multinationals
& Generic
companies for first to launch
status on many products
following patent expiration.
 MPL is already working on two
NCE’s in collaboration with
Original patent holders, along with
ICMR, Govt. of India.
SWOT
Strengths
Opportunities
World class fully integrated manufacturing
facilities
Regulated markets, API and formulations
CRAMS for Global markets
Lifestyle therapeutic segment in domestic market
Increasing rural penetration in domestic markets
Strong research & regulatory capabilities
Continuous identification and launch of new
markets to expand geographies
Market leader position in certain key bulk drugs
with strong presence in exports
Highly
competent,
experienced
professional management team
and
Threats
Strong R&D skills so as to enable in-house
product development
Attrition.
Strong marketing
presence
R&D speed and managing launch
platform
Strong development pipeline
company’s future growth
for
Competition
pan-India
Changing regulatory requirements
to
cater
to
Weaknesses
API operations were focused on Ciprofloxacin
and Ranitidine which have suffered substantial
price erosion
33
Innovation & Value Chain Traversal
BUSINESS SEGMENT - Capabilities across the value chain
Drug Discovery R&D
Preclinical Research
Clinical Research
Marksans Footprint
Process Engineering
Synthetic Chemistry
Custom Synthesis
Contract Research
Pharma Development
Contract Manufacturing
Innovator Products (NCE,
Inorganics, NDDS)
ANDAs, DMFs/COSs
Post Patent Filings
Product Patent
Formulations
Global Exports (Regulated Markets)
Regulatory Approvals / services
(US FDA, UK MHRA, EDQM, TGA, ANVISA)
Strategic Alliances & Partnerships
In-house R&D (Goa, Pune, IITD)
First-to-file (Para IV)
Global Acquisitions
In-/Out-Licensing deals
Bulk Actives (API)
Drug Intermediaries
Process Engineering
1970
2005
2010
34
Industry Maturation (Value Creation)
BUSINESS SEGMENT - Global Formulations
Global Foray: Key features:
Main markets: US, Europe, United Kingdom, Australia, and other emerging markets. Plans in place to
tap huge Russian and CIS markets. Initiated dossier filling in these countries
Collaborations: MPL’s products are available through collaborations with big MNC companies
Quality Manufacturing: Its robust product basket and quality control measures as well as
manufacturing accreditations such as UK MHRA and Australian TGA approved facilities enable MPL to
establish its presence in the global markets
ANDA filings: List of proprietary products identified which are to be developed post patent expiry - It is
filing 10 ANDAs with US FDA by June 2008
Sales Front ends: Rapidly built up a generic sales front end in the USA with investments in sales
distribution.
Acquisitions & approvals: The Company intends to grow inorganically in the global markets:
Already acquired an Australian company - Nova Pharmaceuticals. MPL plans to grow
inorganically in the US and Europe markets as well
Already received approval for 5 products in Australia
With a strong focus on the US markets, the company has entered into an agreement with
Pharmgen LLC, US for the development and filing of 11 ANDA's. The product list is a mix of
off-patent and post patent protected molecules with cumulative annual sales of about USD
17 billion in the US
35
BUSINESS SEGMENT - Domestic Formulations
Coverage and Divisions
Significant presence in major therapeutic areas in domestic market
Wide range of over 250 products in the domestic markets (80 feature in the ORG list)
These products are marketed through 5 distinct divisions as enumerate below:
Sr. No
Speciality
1
Cerebella: CNS (Neuro-Psychiatry)
2
Criticare: Oncology + Critical care
3
Mark Remedies: Gastro, Respiratory
and Gynaecology
4&5
Zenmark and Marksans: GP &
Institutions
Market Size
(Rs millions)
Expected Market
Growth %
Revenues
FY 2007
(Rs Crore)
19,340
12
110
9,000
14
130
81,230
12
150
124,430
11
400
Others
290
Total Market
230,400
12
1080
Marketing Capabilities:
Pan India Field force of ~ 450 MRs
Carved a distinctive image for its products with innovative and aggressive marketing strategies
36
BUSINESS SEGMENT - API
Second largest producers of Ciprofloxacin and Ranitidine in India (Both COSs filed). Together the
Ciprofloxacin Hydrochloride and Ranitidine Hydrochloride rank amongst the top 20 highest selling
drugs in the world. COS already received for Ciprofloxacin
Provides API contract manufacturing services to world’s leading generic pharma companies
Key Focus Area: CVS, Ant diabetic, CNS, Pain management& Gastro Intestinal
The company is addressing antibiotic and antiulcerant therapeutic segments and in the process in
expanding production into CNS, CVS, anti-diabetic and pain management therapeutic segments
which are growing radically. These segments are estimated to be worth approximately US $ 20
billion over the next five years
In the domestic markets MPL has embarked on ambitious expansion projects to scale up its
existing capacity, to enter new therapeutic segments covering high growth lifestyle-related
diseases
MPL has reputed clientele and has been supplying and exporting its products regularly to big
pharma companies & to various countries like Japan, Latin America, Bangladesh, Spain, Egypt,
Jordan, Iran, Mexico, Germany and Africa
37
BUSINESS SEGMENT - API Strategy
Expanding its API business by shifting from predominantly domestic market to the highly
regulated markets of US and Europe
New API’s to be developed based on key products for formulation development with
focus on Post patented Products
Develop several API’s to provide cost and time advantage to complement MPL’s US and
Europe generic filings
Continue to be the preferred third party API supplier to the generic industry
Rapidly file COSs/DMFs into Europe and US markets (5 DMFs and 5 COSs in 2008-09)
New Product introductions:
Commenced commercial supply of new products during the year
Several validation pivotal batches have been sent to global generic players for their dossier
filings
38
MANAGEMENT - Organization Chart
Board of Directors
MD & CEO
Formulations
API
R&D/RA
CFO
Domestic
Manufacturing
Formulation
Purchases
Global
Sales
API
Distribution
RA
CS and Legal
Manufacturing
Accounting, taxation
and IT
39
Head HR
MANAGEMENT - Board of Directors
Mr. Mark Saldanha
–
Managing Director & CEO
V Nagraj
–
Wholetime Director
Dr. Kim Tan
–
Director, nominee of Springhill Bio-Venture Fund
Mr. Ajay Mittal
–
Director, nominee of UTI Venture Fund
Mr. Mahesh Parekh
-
Independent Director
Mr. Kumar Nair
-
Independent Director
40
MANAGEMENT - Promoter
The Company was set up by Mr. Mark Saldanha, a first generation
entrepreneur and is rapidly expanding its business operations
Mark Saldanha
Managing Director &
CEO
Mr. Mark Saldanha, was associated with Glenmark Pharmaceuticals
Ltd. as a whole time director and was instrumental in the growth of the
company in mid and late nineties, before promoting this venture. He is
well versed in the overall management of the company and has vast
experience in managing the marketing, production and finance function
of the company
The Promoter is currently engaged in the Pharmaceutical business only
41
MANAGEMENT - Key Management Personnel
Name
Designation
Profile
V. Nagaraj
Director - Sales &
Marketing
He has done Graduation in Science and PGDMM. He has around 25 years of
experience in Sales & Marketing. He is responsible for entire sales & marketing of
Domestic Market
Jitendra M
Sharma
Chief
Officer
Financial
He is a qualified chartered accountant and cost accountant and is having 13 years
of experience in resources mobilization, developing systems, MIS and taxation
R.K. Jhingan
Sr. Vice President
-Business
Development
He is a bachelor of pharmacy. He has vast experience of over 20 years in
pharmaceutical industry. He looks after molecules and co-development and
entering into research alliances
Bela Bhandari
Chief Marketing
Officer
She is a PGDBM, B. Pharma and has a good exposure in Export marketing. She
is involved in the international marketing
Dr. P. B.
Deshpande
Director – API
He has done Doctorate in Organic Chemistry. He has around 24 years of
experience in R&D, Product Development & Plant Operations. He is responsible
for Strategic Business Development of APIs & overall in-charge of API operations
at Kurkumbh Plant
Dr. Balwant S.
Desai
Director – Quality
and
Regulatory
Affairs
He has done Doctorate in Analytical Chemistry. He has around 20 years of
experience in Quality Control/Assurance/Regulatory Affairs. He is responsible all
Q.A./Q.C./R.A. activities
Mr. A. V. S.
Ravishankar
General Manager
- Operations
He is a master of pharmacy. He has handful in experience and plant operations.
He is responsible for the entire plant at Verna, Goa
Mr. Rajan Sawant
Head – Human
Resources
He has Master's Degree in labour Study from M. I. L. S. Mumbai. He has also
done B. G. L. & D. M. M. He has excellent track record of 15 years in H. R. He is
heading entire gamut of HR initiatives for the organization
42
PRODUCT RANGE - Cerebella: CNS (Neuro - Psychiatry)
Introduction
New
Launches
Indication
Market Size
Rs mio
Division dedicated to neurosciences for
treatment of psychiatry and neurological
disorders
Risperidone
Atypical
Antipsychotic
900
This market is poised for rapid growth due
to lifestyle changes and growing awareness
Piracetam
Memory enhancers
1200
Lorazepam
Ataractic / anxiolytic
2200
Citicoline
Cerebral strokes
1200
Methyl
Prednisolone
Stroke/ spinal cord
injury
450
Lamotrigine
Epilepsy
2400
IVIG
Immune dysfunction
(GBS)
1500
Vision
To achieve a growth of 100% in the turnover
by 2010
Be amongst the top 5 players over a period
of five years
Segment addressed
Antipsychotic
Antidepressant
Antiepileptic
Anxiolytic
Memory Enhancer
Stroke
43
PRODUCT RANGE - Criticare: Oncology + Critical care
Introduction
Globally Oncology is the fastest growing therapeutic segment
MPL is carving out a niche position in Oncology through its Criticare division
Criticare division focuses on Cardio care and Life saving higher end antibiotics
In - licensing is expected to be the key growth driver for this division
Vision
Marksans to have the first mover advantage of introducing First time niche molecules like
EGF,IL2, Oncophage, INF-Gel,EPO and Cancer Vaccine under this division. In-licensing
products like Enoxaparin are to be the key growth drivers for cardio care
Biotechnology drugs, antineoplastics and immunomodulators to be the front runners
To launch one to two in-licensed biotech products every year in the domestic market through its
Criticare division
To capture 4% of Indian Oncology market by 2010 & 6% of domestic Critical care market by
2010
New Launches
Indication
Market Size (Rs mio)
Voriconazole
Systemic Aspergillosis and Candidiasis.
700
Capecitabine
Metastatic CRC and Breast Cancer
2,000
Gefatinib
NSCLC as Fourth Line treatment
1,000
44
PRODUCT RANGE - Mark Remedies
Introduction
New Launches
A multi- specialty division dedicated to GI
disorders and Respiratory infections
~ 40% of domestic pharma market of Rs
28,000 crore is attributed to these two
disorders
MPL markets Prescription/Ethical products
focused on women's health, geriatric
disorders, internal medicine, nutritional
support and lifestyle disorder associated with
gastro-intestinal, cardiology and diabetology
under this division
Vision
To reach a turn over of INR 37 crores and
emerge as a strong player in the segment
Segment Addressed
Gastro, Respiratory, Antibiotics, Gynaecology
+ Others
45
Indication
Market Size
Rs mio
Salmon Calcitonin
Osteoporosis
1200
Adefovir Depivoxil
Hepatitis B
1000
Ursodeoxycholic
Acid
Cholestatic Liver
Disease
2200
Terlipressin
Variceal Bleeding
240
Lactitol
Monohydrate
Constipation, Hepatic
Encephalopathy
2000
Pantoprazole +
Sodium
Bicorbonate
GERD, Ulcers
3000
Drotavarine
Antispasmodic
2200
Codans
Antitussive
4600
Rabemark
(Rabeprazole)
Anti Ulcerant
3000
PRODUCT RANGE - Zenmark and Marksans: GP & Institutions
These divisions are focused on branded generic products and OTC and have 150
products covering almost the entire Pharmaceutical segment
They mainly cater through tender business to private hospitals, government hospitals,
public sector undertakings, AFMSD, Indian Railways, Port Trust, etc
The current product range contains wide spectrum of products to capture maximum
business in Institutional sector
The current business is around Rs. 40 Crore
The basket includes orals, parentrals and topicals
Health insurance is gaining wide acceptance and will further give an impetus to
Institutional business
46
Biopharmaceutical Pipeline
Product
Licensor / Joint R&D
Interferon Alfa 2b
Center of Genetic
Biotechnology, Cuba
Granulocyte
Stimulating
(GCSF)
Indication
Engineering
Colony Beijing Four Rings, China
Factor
Erythropoietin
Beijing Four Rings, China
Interlukin 2
Laboratorio Pablo Cassara, Argentina
Recombinant
Center of Genetic
epidermal
growth Biotechnology, Cuba
factor cream (EGF)
Citicoline
Engineering
Laboratorios Gramon, Argentina
47
& Viral hepatitis infections
hematological cancers
Remarks
& Approved
and
registered for import
and marketing, world
market size: $1.0 billion
(USD)
Protein stimulator of bone Phase
III
trials
marrow cells
completed,
DCI
approval
received,
world market size: $2.0
billion (USD)
Treatment of anemia in HIV Product
registration
and cancer patients
underway,
world
market size: $2.0 billion
(USD)
Melanoma and renal cell Phase
III
trials
carcinoma
completed, product in
registration with DCI
& Patients undergoing superficial Drug Control of India
and deep radiotherapy
approval
received,
Product launch in Q1 of
current fiscal year
Cardiovascular disorder
Dossier awaited from
the manufacturer, Phase
III trials
ACQUISITION - Hale Group: Overview
Marksans Pharma has entered into a share purchase agreement with UK's Hale Group to
acquire its entire share capital, along with its subsidiary company Bell Sons & Co (“Bell”).
Marksans is acquiring Hale through its 100% subsidiary Marksans Pharma UK. The company is
equally owned via the holding company by Philip Hale and Linda Shepherd
Bell is a well-established manufacturer of a broad range of OTC pharmaceuticals having full
approval approval of the UK MHRA and currently holds 38 product licences. Licensed products
contribute over 45% of Bell’s total turnover
Bell manufactures licensed products both as own branded products and, for certain customers, in
own label form together with a range of unlicensed products. Customers include retailers,
pharmacies, chemist wholesalers and cash and carry outlets
The company employs 106 people at its freehold licensed manufacturing site in Southport,
Merseyside and has further 12 employees providing sales administration, buying and technical
support
The company had clocked a turnover of £ 8.03 million and £ 8.94 million respectively for FY’05
and FY’06 (year ending December). The EBITDA margins for the said period stand at 12% and
14% respectively
48
ACQUISITION - Hale Group: Products
Product Group
Product Basket:
Cough and cold remedies
2% 2%
Galenicals
6%
5%
4%
12%
15%
Vitamins
Palliative and healthcare items
Oils
Antiseptics and disinfectants
9%
45%
The Company currently holds 38 product
licences registered with MHRA. Licensed
products contribute over 45% of the
Company’s turnover
Under the OTC pharmaceuticals, the
Company supplies its “own label” pharma
products to all of the UK’s leading
supermarket chains. The own label market
now accounts for more than 45% of the
Company’s total turnover
49
Antiseptics
Oral Liquids
Powders
Bought-ins
Oils
Sachets
Liquids
Ointments
Misc
ACQUISITION - Hale Group: Markets
The company is a preferred supplier to
more than 300 customer all over the
country, including the leading retail sector
brands and major chemist wholesalers
Turnover by Sector
33%
46%
UK markets represents 80% of the
customer base and two third of total sales.
The company’s largest customer accounts
for 6% of total sales only. Thus the business
is not customer centric
The Company has been in the export
markets for more than 80 years now. Its
products are well recognised and respected
in the overseas markets
The company products are sold in more
than 40 countries. Key markets are West
Africa and Middle East
50
21%
Retailer
Wholesaler
Export
ACQUISITION - Hale Group: Financial Summary
P&L Summary
Pounds in million
Particulars
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007E
Turnover
6.76
7.28
8.01
8.03
8.94
9.33
Gross Profit
1.67
1.90
2.12
1.59
2.00
2.13
EBITDA
0.99
1.20
1.39
0.96
1.24
1.29
Gross Profit Margin
25%
26%
27%
20%
22%
23%
EBITDA Margin
15%
16%
17%
12%
14%
14%
The company has shown steady and sustained growth over the past 5 years, with turnover increasing
by over 40% from £ 6.3 million in 2001 to £ 8.9 million in 2006. Based on the current performance
growth is currently running at 5% per annum
The slight decline in gross margin and profitability in 2005 reflects the impact of the new
manufacturing plant installed in that year leading to an increase in salary and depreciation costs. The
gross margin going forward is likely to improve as the fixed elements of salary and depreciation would
form a smaller percentage of cost of sales as turnover increases
51
ACQUISITION - Hale Group: Financial Summary
Balance Sheet Summary
Particulars
Pounds in million
FY2002
FY2003
FY2004
FY2005
FY2006
Assets
Fixed Assets
Current Assets
Total
2.54
2.26
4.79
2.47
2.87
5.34
3.27
2.85
6.11
3.07
3.32
6.40
2.80
4.27
7.06
Liabilities
Share Capital
Revaluation Reserve
Profit and Loss Account
Current Liabilities
Total
0.01
0.40
2.94
1.45
4.79
0.01
0.39
3.47
1.47
5.34
0.01
0.39
4.12
1.60
6.11
0.01
0.39
4.37
1.63
6.40
0.01
0.38
4.76
1.92
7.06
52