1. Challenging Healthcare Barriers Globally
Growing Successful Companies – A Pharma Perspective
Harshawardhan (Harsh) Bal, M.Pharm., PhD
SVP - Business Development & Strategy
Promed Group
17th Dec 2012
Management Development Institute (MDI), Gurgaon
www.promedgroup.com
Confidential & proprietary; not to be reproduced without permission. All rights reserved. 1

2. Agenda
• Brief intro
• Enterprise maturation & evolution – A Pharma perspective
• Promed Group
• Business overview
• Mission and vision
• Product categories
• Differentiated strategy to build a global pharma co
• Global strategy - US entry
• Growth strategy - Russia & India
• Corporate Social Responsibility
• Value proposition & summary
• Contact info
• Q&A
www.promedgroup.com 2

3. Brief bio
From science to the business of science
About me To do
• M.Pharm. in Pharm Tech, Dept of Pharmacy, Nagpur U • Know what you want early
• Work-ex (NPIL, USV, Mumbai; formulation R&D) • Build industry connections
• PhD. Molecular Biology (National Inst. of Immunology/JNU) • Network aggressively (LinkedIn,
• Targeted therapies for cancer using Ab-toxin conjugates local events, etc.)
• Post-doctoral fellowship • Research industry trends
• Univ of Rochester Medical Center, NY (Gene therapy) • Invest in companies
• Cold Spring Harbor Lab, NY (Genomics & Bioinformatics) • ...
• Dana-Farber/Harvard Cancer Center, Boston – Signaling
pathways + target discovery in HIV/AIDS & HTLV/Leukemia Review questions
• OSI Pharma (now Astellas Pharma), NY - Novel protein family • What are your near/LT goals?
target discovery based on human genome sequencing • What are your core
• Millennium Pharma (Takeda Oncology), Cambridge, MA competencies?
• KM (managing org. memory on proprietary genes, drugs) • What is your ideal company?
• Booz & Co. (NY & Rockville, MD) – Strategy + mge consulting • What is your ideal role?
• Pharma/Biotech + federal consulting (BMS, NIH, USFDA) • Do you want to gain experience
• Avendus; MAPE Advisory, Mumbai – I-banking (M&A, PE) first or be an entrepreneur?
• Stem Cell Capital, US - Cross-border i-banking; BD+consulting • …
• Piramal Healthcare, US – Head of Global API business
• Promed Group, Gurgaon – Head of Global BD & strategy
Cross-cutting skills, cross-domain experience
Drug discovery Strategy BD&L Entrepreneur/
I-banking
R&D consulting (Corp Dev.) VC?
www.promedgroup.com 3

4. Enterprise maturation & evolution curve To do
• Identify industries of interest to
you – Pharma, IT, infra, ...
• Research start-ups, growth
phase & mature cos
• Trace their growth and
evolution over last 5-10 yrs
• Identify incremental and
disruptive trends/innovations
• Correlate stock trends with
events wherever possible
Review questions
• What were their growth
strategies?
• What were the trends/
innovations that shaped their
evolution?
• How did they differentiate?
• Are they competitive today?
• What should they do in next 5
and 10 yrs?
Single therapy focus Multiple therapy focus
- Specialty pharma cos - Full product portfolio Global diversified fully
- Core expertise - Diversification integrated enterprise
- E.g., Promed - E.g., Piramal
www.promedgroup.com 4

5. About Promed
• Ophthalmology focused specialty pharmaceutical company established in 1990 and
headquartered in Gurgaon
• Fully integrated pharma co with full formulation R&D, manufacturing and marketing
capabilities
• Global presence with established footprint –
• Russia, Kazakhstan, Ukraine and India
• #2 position in the ethical ophthalmology segment after Alcon
• Four brands amongst top 15 ophthalmic brands in Russia
• Deep market penetration and directly cover ~100 biggest cities in Russia
• Provis India (wholly owned sub) fastest growing ophtha co in India
• Strong presence in >45 cities and expanding in South and West India
• Strong focus and developing business in US, EU and Australia
• Develops, manufactures and markets a wide range of products –
• Ophthalmic, respiratory, otic, and wound care solutions
• Regulatory approvals from EU-GMP, TGA-Aus; USFDA audit expected Q12013
• Current revenues at USD 45 Mn and growing at ~20-25% yoy
www.promedgroup.com
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6. Corporate goals
Vision Mission
• To be recognized as a research-based • To provide innovative products through
global company offering a complete persistent research and development
range of ophthalmology and ENT
products • To become a leading pharma company
known for manufacturing 'difficult to
make' products by continually
introducing advanced technologies
• To create mutually exciting strategic
alliances and opportunities for our
stakeholders
• To become a preferred employer in the
pharma sector
6
www.promedgroup.com

7. Promed Business Overview
Promed Promed Research
Group Centre, Gurgaon
Regulated
Contract
Markets
Russia & CIS Provis (India) manufacturing
(US/CAN,
(Nalagarh, HP)
UK/EU)
Generic & differentiated
CMO Services
products
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www.promedgroup.com

8. Product Categories
Ophthalmic Formulations
- Multi dose solutions & suspensions
- Specialized capabilities
(preservative free UDs)
Respiratory Care (for nebulization)
- Inhalation solutions
- Inhalation suspensions
Indications/uses
Wound Care • Anti-inflamm/NSAIDs
- Sodium chloride irrigation solution • Anaesthetic
• Artificial tears/dry eye
• Anti-glaucoma
ENT Care • Anti-infective+anti-
- Nasal drops inflamm combos
• Mydriasis (for myopia)
- Ear drops
• Nutrition
www.promedgroup.com 8

9. Differentiated strategy to build global pharma company
Phase 1 – Achieving ophthalmology segment leadership
Russia US/Canada
• New product development • Pharmacy chains
• In-licensing of products • Distribution partners
• New TAs (ENT) • R&D partnerships (P4, 505b2)
• Acquisitions
UK/EU India ROW • Cos with products/ANDAs
• Licensing (Big 5) • Inorganic growth • Partner with local • Formulation development
• CMO contracts • Licensing/M&A companies
• Brands
• Cos with FF
www.promedgroup.com

10. Differentiated strategy to build global pharma company
Phase 2 – Achieving multi-specialty depth; focus on India, Russia & US
India Russia US/Canada
• New TAs • New therapy areas • New therapeutic areas
• New segments • New segments • New segments
• Licensing/M&A • Licensing/M&A • Licensing/M&A
• Brands • Brands, companies • Cos with products/ANDAs
• Cos with FF • Formulation development
www.promedgroup.com

11. Building a global company
US/CAN strategy
Entry strategy for US To do
• Partnership with pharmacy chains • Identify homegrown Indian
• S&M agreements with distribution partners companies in specific sectors that
• JV with generics and branded pharma cos have become global
• Co-development deals with innovator pharma • Review their competitive positioning,
• In-licensing of marketed products/ANDAs product and service offerings
• Acquisition of companies/products • Compare their financials and
• Establish label and front-end valuations
Questions on US strategy
• How much revenues should co target in next 5 Review questions
and 10 yrs from US? • Which global markets did they
• Should we partner with a third party or set up target? Why?
our own office? • Which inorganic strategies did they
pursue?
• What type of JV deals should we get into?
• What products did they introduce in
• What new business areas should we target?
domestic and global markets?
• New products
• What regulatory issues did they
• New product categories
face?
• New therapeutic areas • How did they build brand presence?
• New segments • How much market share do they
• Is the contract manufacturing business (as a have?
service to big pharma companies) sustainable?
www.promedgroup.com 11

12. JV model for partnering with US based companies
Company X partners with Company Y
Branded JV Generics majority JV
(50:50) (80 Company X:20 Company Y)
- Commercialize
- Commercialize
- Commercialize NDAs Company X’s innovator - Commercialize ANDAs
Company X’s ANDAs
- Acquire NDAs/brands/ products - Acquire
- Company X provides
branded cos - Company X provides ANDAs/generics cos
R&D + manufacturing
R&D + manufacturing
Company Y + Company Company Y + Company
Company X markets Company X markets
X retain US rights; X retain US rights;
products in home products in home
Company Y provides full Company Y provides full
territories territories
S&M S&M
3-4 years 3-4 years
Exit through Exit through
IPO/buyout IPO/buyout
www.promedgroup.com 12

13. Building a global company
Russia strategy
Russia strategy To do
• New product development • Identify Indian companies that have
• UD for existing products entered Russian market
• Improved formulations • Review their competitive positioning,
• Once daily regimen product and service offerings
• Better patient experience • Compare their financials and
• Preservative-free products valuations
• Inorganic opportunities
• In-licensing of products/companies Review questions
• Manufacturing setup • Why did they target Russia?
• New TAs/Segments • What regulatory issues did they
face?
• How did they build brand presence?
Questions on Russia strategy • What are the fastest growing product
• How much revenues should company segments in Russia?
target in next 5 and 10 yrs from Russia? • How many new products did they
• What new business areas should we introduce over last few years?
target? • How much market share do they
• New products, product categories have?
• New therapeutic areas/segments
• How many new products should we
introduce every year?
www.promedgroup.com 13

14. Building a global company
India strategy
To do
India strategy • Identify specialty “pure play” and
• Inorganic opportunities diversified Indian (Pharma and other)
• Acquisition of brands/companies companies
• New therapeutic areas/segments
• Review their product and service
offerings
Strategic partnerships • Compare them against peers – product
• Partnership with specialty hospitals mix, product ratings (IMS data), markets,
• Institutional sales financials, valuations
• Review recent deals in the Pharma space
(M&A, PE funding, etc.)
Questions on India strategy
• How much revenues should co target in Review questions
next 5 and 10 yrs from India? • What does it take to become a successful
generic co in India?
• What new business areas should we • What product mix and pricing strategy
target? should one employ?
• New products • How are Indian generic companies
• New product categories valued against their peers in US?
• New therapeutic areas • Is this a good market for an IPO?
• New segments • How should a co choose a PE firm?
• What exit options should be considered?
www.promedgroup.com 14

15. CSR - Seva in our Hearts
CSR initiatives
• Promed contributes 2% of net profit to CSR
activities
• Every employee puts 2 work days per year
into Seva activities
• Integrated health check-up camps -
specialized eye camps, dental checkups,
blood donation camps for the community at
regular intervals
• Support NGOs - Deepalya Foundation,
Aarushi - Shelter for female child;
sponsorship for education
• Plantation drives and green manufacturing
practices to help protect the environment
www.promedgroup.com
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16. CSR – Seva in our Hearts
www.promedgroup.com
16

17. Summary
Promed value proposition –
• Innovation driven co with sharp focus on
execution and delivery
• Fully integrated with strong product R&D and
GMP manufacturing
• Cost-competitive and high-speed development
and manufacturing
• Adherence to stringent quality controls and
processes per global standards
• Fundamentally partnership-driven model with
clients and builds LT relationships
• Strong global regulatory expertise
• #2 position in Russian ethical
ophthalmology market
• Robust ANDA pipeline for US and regulated
markets
• Established products in EU
• EU-GMP and TGA-Aus approved
• USFDA audit Q1 2013
Promed is extremely well-positioned to emerge as a global diversified pharma co
www.promedgroup.com 17

18. Contact
Harsh Bal, M.Pharm., PhD
Sr. VP – Business Development & Strategy
We need your creative out-of-the-box E: hbal@promedgroup.com
thinking & bold new ideas.
M: +91 813 015 8883
LinkedIn: in.linkedin.com/in/harshbal
PROMED Exports Pvt. Ltd.
We need change agents and 261, Udyog Vihar, Phase- IV, Gurgaon
entrepreneurial minds with a can-
do attitude. Haryana - 122001, India
T: +91(124) 495 1100
F: +91(124) 430 1263
W: www.promedgroup.com
We are hiring – please send your
resumes to us!