The document provides an overview of South Africa and its pharmaceutical market from the perspective of Pharmaplan Pty Ltd, a South African pharmaceutical company. It summarizes that South Africa has a growing economy and pharmaceutical market but also faces challenges like unemployment, crime, and healthcare issues like HIV/AIDS. Pharmaplan has experienced exceptional organic growth over 12 years, focuses on specialty pharmaceuticals and hospitals, and is interested in partnering with other niche-focused companies to continue expanding in South Africa and the greater SADC region.

1. SOUTH AFRICAAn Insider's perspective GertHoogland, MD, MBA ‘85D (INSEAD) – Founder and CEOPharmaplan Pty Ltd Basel, 8 October, 2009

3. The bad

4. The uglyThe SA Pharma Market Pharmaplan Pty Ltd Agenda

5. 3 Spectacular Beauty

6. 4 Infrastructure

7. 5 Tri-Nations Champions

8. 6 Soccer World Cup 2010

9. 7 Key market features against other major emerging markets * Average from 01/01/08 until 04/11/08 Source: CIA World Factbook, The Economist Intelligent Unit, Standard Bank Group Economics, Credit Suisse

11. The largest contributor to GDP is the services sector, comprising finance, insurance, real estate and business services

12. The South African Reserve Bank (SARB) has increased interest rates six times since the beginning of 2007, driven by monetary policy which targets an inflation band of 3% to 6%

13. Economic activity is experiencing a slowdown (in midst of global markets and domestic issues) following unprecedented growth over the past several years

14. As result of higher monetary policy and credit-lending criteria, household demand has decreased (following a period of easy access to credit in recent times)

15. With a large measure of macro stability achieved, the aim of economic policy is to lower unemployment and poverty through raising the growth potential of the economy

16. The Government continues to target 6% real GDP growth by 2010

17. Significant infrastructure capital expenditure is planned from 2008 enabling an improvement in real GDP growth ahead of the World Cup in 2010Prime lending rates Average annual CPI Source: Standard Bank Research Economics Macro-Economic Forecast

19. The bad

20. The uglyThe SA Pharma Market Pharmaplan Pty Ltd Agenda

22. Inequity / BEE

23. Service Delivery

24. Skills exodus / Skills Gap

25. Housing / sanitation / education

26. Public versus Private Sector issuesSource: Standard Bank Research Economics Macro-Economic Forecast

28. The bad

29. The uglyThe SA Pharma Market Pharmaplan Pty Ltd Agenda

31. # 2 South Africa : 0.496008 = 25,000 = 68 murders/day

32. # 3 Jamaica: 0.324196

33. # 4 Venezuela: 0.316138

34. # 5 Russia: 0.201534

35. # 6 Mexico: 0.130213

36. # 7 Estonia: 0.107277

37. # 8 Latvia: 0.10393

38. # 9 Lithuania: 0.102863

39. # 10 Belarus: 0.0983495Source: Nationmaster.com

41. MTC transmission 300,000 p.a.

42. HIV / AIDS deaths 345,000 p.a.

43. Tuberculosis 482,000

44. Tuberculosis deaths 105,000 p.a.NHI – Public/Private partnerships

46. The bad

47. The uglyThe SA Pharma Market Pharmaplan Pty Ltd Agenda

49. Dispensing Dr

50. Private Hospitals15 bn ZAR 10 bn ZAR 1 bn ZAR 4 bn ZAR Public market 5 bn ZAR Source: IMS May 2009

51. 16 SA Demographics 8 m lives insured (Private) 16 m lives employed, not insured (Emerging Market – MHC) 26 m lives not employed, not insured (Public Healthcare)

53. Adcock – Ingram

54. Sanofi Aventis

55. Novartis

56. Pfizer

57. Astra-Zeneca

58. Johnson & Johnson

59. Roche

60. Glaxo

61. CiplaGeneric Generic Hybrid Hybrid Hybrid R&D based R&D based R&D based Hybrid Generic # 28 (corrected for uncaptured sales # 21) Pharmaplan

63. The bad

64. The uglyThe SA Pharma Market Pharmaplan Pty Ltd Agenda

65. 19 Pharmaplan Vision To be South Africa's Premier Specialist Pharmaceutical Company "There are currently 12 specialist driven products in the top 30 and 17 in the top 50" Scrip '05

66. 20 But … RSA also needs - Representation of Top NICHE generic suppliers in South(ern) Africa “It is therefore very crucial for us to ensure that access to affordable, safe, effective and quality drugs is established” Dr. MantoTshabalala Msimang, Minister of Health, Keynote address, 10 September 2001

68. Complemented by "niche" generic suppliers“Provide new therapeutic entities by making financial headroom resulting from generic substitution of out-of-patent products”

69. 22 Head Office – Midrand

70. 23 Distribution & Logistics

72. Niche, boutique

73. Shared trading infrastructure across principals

74. Cost effective

75. Dedicated marketing and sales forces

76. Principal directed product positioning

77. Integrated pharmaceutical agency offering

78. Registration, Marketing, Launch, Distribution, Regulatory, Finance

79. Regional (SADC) agency offering

81. Starting out in 1997 … 26

83. Radiology

84. Dermatology

85. Gastro-Enterology

86. Oncology

87. Psychiatry

88. Clinical nutrition

89. Cardiology

90. Pain Management

91. Anaesthesiology

92. Allergology

94. s South Africa – Pharmaceutical Market Key Players 29 The key players in the pharma market are growing at a healthy rate 2007-2009 CAGR of major Pharma companies May MAT 2009 Market share of major Pharma companies 32% Pharmaplan Aspen 26% 2% 20% REST Adcock
Ingram 14% 14% 11% 8% 6% 4% Sanofi
Aventis GlaxoSmithKline -3% Novartis Roche Johnson & Johnson Pfizer Cipla-Medpro AstraZeneca Pharmaplan Cipla-Medpro AstraZeneca Sanofi Aventis Aspen GlaxoSmithKline Novartis Roche Adcock Ingram Pfizer Source: IMS Health-May 2009 MAT – Conversion rate pharmaplan 2007=6.5 conversion rate 2009= 7.4 $22.5 Mn to $39.2 Mn

95. Pharmaplan sales growth = 2x market growth 30 Sales history (ZAR '000) 600,000 (+13%) 496,000 (+15%) 440,000 500,000 (+28%) 384,000 400,000 (+34%) 300,000 300,000 (+40%) 224,395 (+28%) 160,207 200,000 (+37%) 125,272 97,285 91,302 100,000 49,466 0 2008 2007 2006 2009 2010 2003 2005 2004 2012 2011

97. In-depth knowledge of both R&D and generic Rx markets

98. Focused on Specialty Pharma and Hospital Business

99. Fastest growing and largest private pharma company in South Africa, now entering SADC countries

101. 33 Dr Gert Hoogland, MD, MBA (INSEAD) Executive Director Tel: +27 (0) 11 652 0950 Fax: + 27 (0) 11 652 0953 Mobile: +27 (0) 82 900 0728 Pharmaplan (Pty) Ltd 106 – 16th Road Midrand 1685 South Africa 2000 Thank you