1

Stock Data

Sector Pharmaceuticals

Face Value (Rs.) 5.00

52 wk. High/Low (Rs.) 416.80/230.10

Volume (2 wk. Avg.) 322000

BSE Code 532523

Market Cap (Rs.mn.) 80160.00

Financials (Rs. in mn.) FY09 FY10 FY11E FY12E

Net Sales 16165 23747 27547 31954

EBIDTA 3879 5085 5875 6789

PAT 2481 3028 3525 4163

EPS 4.66 14.66 17.10 20.24

P/E 86.08 27.34 23.44 19.80

Biocon Ltd

BUY

F

I

R

S

T

C

A

L

L

R

E

S

E

A

R

C

H

SYNOPSIS

Biocon is a fully integrated biotechnology enterprise, specializing in biopharmaceuticals, custom research and clinical research.

Biocon and CIM join forces for an integrated antibody program in immunology.

The company has inked a pact with Teleradiology Solutions.

The company has launched its new Comprehensive Care Division.

The company has entered into a long-term supply agreement with Optimer Pharmaceuticals, Inc. for the commercial manufacturing of the active pharmaceutical ingredient (API) -fidaxomicin, the latter's lead product candidate for the treatment of CDI.

Biocon SA, a wholly owned subsidiary of the Company consummated the acquisition of CIMAB´s share of 49% equity shares in Biocon Biopharmaceuticals Private Limited (BBPL). Accordingly, BBPL has become a full subsidiary of the Company.

Biocon exploring Malaysia as destination for expansion.

The company’s net sales and net profit are expected to grow at a CAGR of 26% and 19% over FY09 to FY12E.

1 Year Comparative Graph

Biocon Ltd BSE SENSEX

V.S.R. Sastry

Equity Research Desk

vsrsastry@firstcallindiaequity.com

Dr. V.V.L.N. Sastry Ph.D.

Chief Research Officer

drsastry@firstcallindia.com

C.M.P: Target Price: Rs.400.80 Rs.460.00

Share Holding Pattern

October 18th, 2010

2

Table of Content

Content Page No.

1. Peer Group Comparison 03

2. Investment Highlights 03

3. Company profile 07

4. Financials 10

5. Charts & Graph 12

6. Outlook and Conclusion 14

7. Industry Overview 15

3

Peer Group Comparison

Name of the company CMP(Rs.) Market

Cap.(Rs.Mn.) EPS(Rs.) P/E(x) P/Bv(x) Dividend (%)

BIOCON 400.80 80160.00 14.66 27.34 4.56 70.00

DR.REDDY’s 1580.25 267380.80 51.01 30.98 4.52 225.00

CIPLA 332.50 266971.40 13.67 24.32 4.52 100.00

GLENMARK 305.10 82357.50 6.82 44.74 4.64 40.00 *As on 18/10/2010

Investment Highlights

Results Updates (Q1 FY11) (Consolidated)

For the first quarter, the top line of the company increased 33%YoY and stood at Rs.6637.20mn against Rs.4984.50mn of the same period of the last year. The bottom line of the company for the quarter stood at Rs.767.40mn from Rs.575.50mn of the corresponding period of the previous year i.e. an increase of 33%YoY

EPS of the company for the quarter stood at Rs.3.84 for equity share of Rs.5.00 each.

4

Expenditure for the quarter stood at Rs.5310.10mn, which is around 35% higher than the corresponding period of the previous year. Raw material cost of the company for the quarter accounts for 63% of the sales of the company and stood at Rs.4208.30mn. Employees Cost stood at Rs.741.40mn from Rs.564.80mn. and accounts for 11% of the revenue of the company for the quarter i.e., an increase of 31%YoY.

OPM and NPM for the quarter stood at 21% and 12% respectively from 22% and 12% respectively of the same period of the last year.

5

Domestic Branded Formulations - The existing verticals in branded formulations (Diabetology, Oncotherapeutics, Nephrology and Cardiology) have posted a combined strong YoY growth of 28%. The Company will launch two new divisions in Q2 FY11 - Comprehensive Care and Immunotherapy. These new divisions will target physicians and specialists in hospitals and intensive care settings. In Q2 FY11, Biocon's Nephrology division will launch Advacan, a drug for renal and heart transplant recipients. In the Cardiology segment, Clotide (Eptifibatide) and Myokinase (Streptokinase) maintain their No 1 and No 2 rankings in their respective categories. German subsidiary Axicorp has posted strong results in this quarter with a 37% YoY growth in sales.

Biocon and CIM join forces for an integrated antibody program in immunology

Biocon and the Center of Molecular Immunology (CIM), based in Havana, Cuba have strengthened their existing research partnership by joining forces for an integrated antibody program in immunology.

Both of these entities have successfully collaborated for almost a decade on an integrated program to manufacture and clinically evaluate recombinant proteins with the aim of building a portfolio based on therapeutic biotechnology products for chronic disease .Two drugs that have already been approved for medical use in India and other territories. A novel monoclonal antibody targeting the Epidermal Growth Factor Receptor for the treatment of Cancer, and the human recombinant Erythropoietin-for the control of anemia in chronic kidney disease-were developed under stringent medical regulatory standards.

Further, these two companies are moving to create an innovative product pipeline focused on autoimmune disease and cancer. Fundamental research performed at CIM and Biocon has defined the anti-inflammatory capacity of a

6

novel monoclonal antibody, an Anti-CD6 Monoclonal Antibody. This molecule targets lymphocytes, the key players in the immuno-pathology of autoimmune diseases. Experimental data supports its effect in controlling inflammation that can cause damage of tissues.

The Anti-CD6 targeting antibody is a First in Class molecule which has recently transited to advanced clinical trials for the treatment of Psoriasis and Rheumatoid Arthritis Patients.

Biocon in pact with Teleradiology Solution

The company has inked a pact with Teleradiology Solutions under which the latter will provide teleradiology reporting services to the former's clinical research unit - Clinigene. These reporting services help clinical research and biotechnology companies to reduce the time required for their development cycle.

Teleradiology Solutions provides teleradiology services to hospitals around the globe, which includes interpretation of all non-invasive imaging studies, namely CT, MRI, ultrasound, nuclear medicine studies and digitized X-rays. The company provides subspecialty consultations in cardiovascular and oncologic imaging to hospitals in India as well, and has joint research partnerships with major technology vendors such as GE, to explore new techniques in 3D imaging analysis.

The teleradiology reporting services are provided by the company's radiologists experienced in RECIST (Response Evaluation Criteria In Solid Tumours). These radiologists follow the World Health Organisation (WHO) measurement criteria.

Biocon launches new healthCare division

The company has launched its new Comprehensive Care Division, dedicated to provide affordable solutions to critical illnesses like nosocomial infections, post surgical complications, trauma and medical emergencies.

This would be the fifth division for Biocon, complementing the existing product portfolios in Diabetology, Oncology, Nephrology and Cardiology divisions.

The division is introducing 5 new products in the initial phase of launch for the treatment of critical illnesses like Septicemia, Nosocomial pneumonia and other acute hospital infections. These products will include platforms based on Pneumocandins (a class of Echinocandins), Lipopeptides, specialised Cephalosporins and Carbapenams.

Biocon in pack with Optimer Pharmaceuticals

The company has entered into a long-term supply agreement with Optimer Pharmaceuticals, Inc. for the commercial manufacturing of the active pharmaceutical ingredient (API) -fidaxomicin, the latter's lead product candidate for the treatment of CDI.

7

CDI is caused by Clostridium difficile, a spore forming bacterium that can cause serious infection of the colon in humans by multiplying and producing toxins resulting in inflammation, severe diarrhoea and in serious cases, death.

As per the estimates of the Centers for Disease Control and Prevention (CDC), CDI affects nearly 500,000 people in the US annually.

Acquisition Biocon SA, a wholly owned subsidiary of the Company consummated the acquisition of CIMAB´s share of 49% equity shares in Biocon Biopharmaceuticals Private Limited (BBPL). Accordingly, BBPL has become a full subsidiary of the Company.

Syngene partners with Endo Pharmaceuticals Syngene International, a 100% subsidiary of Biocon, has partnered with Endo Pharmaceuticals to develop a novel biological therapeutic molecule against cancer. Under the terms of the agreement, Endo will retain all rights to the molecule developed and in return Syngene International will receive research fees, milestone payments and success fees from Endo. This is a first in India involving the discovery of a biological therapeutic entity. This also marks Endo’s foray into the biologics space and is in line with its strategy of building its pipeline using a virtual discovery approach in conjunction with its in-licensing efforts.

Biocon enters into strategic tie up with Bayer for diabetes monitoring.

Biocon and Bayer Healthcare -- a subsidiary of Bayer AG and one of the world's leading, innovative companies and medical products industry have entered into strategic partnership to fight the diabetes menace in India.

As part of Biocon's unique patient service initiative branded as 'Wining with Diabetes', the strategic tie-up with Bayer Healthcare entails bringing the latest hi-tech blood glucose meter branded as 'Breeze2', to the masses in India. This initiative follows the mantra that self monitoring of blood glucose (SMBG) is the most important part of diabetes management.

As an innovator of blood glucose meters with no coding technology, Bayer's new blood glucose meter offers shorter testing times and easier functionality. Breeze2 requires a small blood sample size and include a 10-test disc system, allowing users to test ten times without handling individual strips and has received the Ease-Of-Use Commendation from the Arthritis Foundation of USA.

At Biocon, research efforts are focused on a number of debilitating diseases with a key focus on diabetes. The Biocon-Bayer initiative in India has a single minded objective --'To win with diabetes'. As an introductory offer and to promote SMBG as a mass concept, Bayer's Breeze2 imported blood glucose meter will be given to select patients on a doctor's recommendation.

8

Biocon exploring Malaysia as destination for expansion The company has signed a memorandum of understanding with Malaysia’s Biotechnology Corporation (BiotechCorp) to explore collaboration and potential investment in Malaysia’s biotechnology industry. Biocon is in talks with Biotech Corp to manufacture biopharmaceutical products and formulations within Malaysia’s Nusajaya, Iskandar Malaysia in the biotech park called the Bio-XCell Ecosystem.

Company Profile Biocon, Asia’s largest biotechnology company, started itself with seed capital of Rs.10, 000 in 1978, is now a billion dollar company. The company manufactures biotechnological products catering to the healthcare segment. It is engages itself in all phases of the product cycle from discovering to development & then commercializing the same drugs. This pharmaceutical company has fermentation-based technology, creating cost effective drugs. Syngene and Clinigene, subsidiaries of Biocon conduct R& D programs for international pharmaceutical and biotechnology majors. Biocon produces anti diabetic agents like Acarbose, Pioglitazone, Repaglinides & Rosiglitazone. In the biological segment it produces Insulin, Erythropoietin (EPO), Filgrastim (GCSF), Streptokinase & Monoclonal Antibodies. The drug major produces mycophenolate mofetil, sirolimus and tacrolimus. It also produces & market mix of specialty & industrial enzymes for industries like paper, brewing, beverages, food, brewing, textiles & distilling. The company’s drug portfolio consists of lovastatin, simvastatin, pravastatin and atorvastatin. Subsidiary Companies: Syngene International Limited Syngene International Limited is a custom research organization offering synthetic chemistry and molecular biology services for early stage drug discovery and development. Clinigene International Limited Clinigene International Limited is a clinical research organization offering Phase I-IV clinical trials and studies for novel/generic molecules to international pharmaceutical majors. Biocon Biopharmaceuticals Private Limited (BBPL) Biocon Biopharmaceuticals Private Limited (BBPL) is a joint venture with CIMAB to develop and market a range of monoclonal antibodies and cancer vaccines. AxiCorp GmbH

9

AxiCorp GmbH is a Friedrichsdorf (Germany) based pharmaceutical marketing company and is amongst the fastest growing in Europe. Biocon Limited acquired a majority stake in AxiCorp GmbH (70%) in February, 2008. NeoBiocon FZ LLC NeoBiocon FZ LLC is a research and marketing pharmaceutical company based in Abu Dhabi. Incorporated in January 2008, NeoBiocon is a 50:50 joint venture with Dr. B.R.Shetty, Managing Director of NeoPharma, Abu Dhabi. Company Products Biopharmaceuticals Active Pharmaceutical Ingredients (APIs)

• Anti-Diabetic Agents • Anti-Inflammatory Agents • Anti-Oxidants • Cardiovascular Agents • Anti-Obesity Agents • Digestive-Aid Enzymes • Anti-Hypertensive Agents • Haemostatic Agents • Hepatoprotective Agents • Immunosuppressants • Gastro-Intestinal Agents • Nutraceuticals

Biologicals

• Insulin • Streptokinase • EPO • GCSF • Monoclonal Antibodies

Branded Formulations Oncology

• BIOMAb EGFR® • NUFIL safe™ (Pre-filled Syringe) • NUFIL™ (Vials) • Abraxane® for injectable suspension

Nephrology

• ERYPRO safe™ (Pre-filled Syringe) • TACROGRAF™

10

• RAPACAN™ • CYCLOPHIL ME™ • RENODAPT™ • RENODAPT™ - S • CeRACaL™

Cardiology

• STATIX® • STATIX®-F • STATIX®-EZ • BESTOR® • TELMISAT™ • TELMISAT™-H • ZARGO® • ZARGO®-H • ZIGPRIL® • ACTIBLOK™-IPR • BRADIA™ • CLASPRIN® • THINRIN™ • MYOKINASE™ • CLOTIDE™ • DYNALIX®

Diabetology

• INSUGEN®-R • INSUGEN®-N • INSUGEN®-30/70 • INSUGEN®-50/50 • BASALOG™ 3ml, 10 ml • BLISTO™ 1, 2 & 4 • BLISTO™-MF 1, 2 & 4 • METADOZE-IPR® 500 & 850 • PIODART® • PIODART®-MF • TriGPM™ • ZUKER™-MF • GABIL™ • GMAB™ Plus • OLISAT™

Dosage Forms Biocon offers Indian pharmaceutical companies finished dosage formulations in the categories of cardiology, diabetology, nephrology, oncology and other specialised therapeutic segments. They provide formulations in the form of tablets, capsules, injections, liquid-orals and pellets.

11

Financials Results 12 Months Ended Profit & Loss Account (Consolidated)

Value(Rs.in.mn) FY09 FY10 FY11E FY12E

Description 12m 12m 12m 12m

Net Sales 16165.10 23747.50 27547.10 31954.64

Other Income 567.00 300.90 324.97 350.97

Total Income 16732.10 24048.40 27872.07 32305.61

Expenditure -12853.00 -18963.30 -21997.43 -25517.02

Operating Profit 3879.10 5085.10 5874.64 6788.59

Interest -176.60 -168.90 -185.79 -195.08

Gross profit 3702.50 4916.20 5688.85 6593.51

Depreciation -1102.50 -1401.40 -1541.54 -1695.69

Profit Before Tax 2600.00 3514.80 4147.31 4897.82

Tax -118.30 -486.70 -622.10 -734.67

Profit after Tax 2481.70 3028.10 3525.22 4163.14

Extraordinary Items -1471.90 0.00 - -

Minority Interest -78.60 -95.60 -105.16 -115.68

Net Profit 931.20 2932.50 3420.06 4047.47

Equity capital 1000.00 1000.00 1000.00 1000.00

Reserves 14184.00 16569.00 19989.06 24036.52

Face Value 5.00 5.00 5.00 5.00

Total No. of Shares 200.00 200.00 200.00 200.00

EPS 4.66 14.66 17.10 20.24

12

Quarterly Ended Profit & Loss Account (Consolidated)

Value(Rs.in.mn) 31-Dec-09 31-Mar-10 30-Jun-10 30-Sep-10E

Description 3m 3m 3m 3m

Net sales 6370.00 6582.10 6637.20 6969.06

Other income 45.40 74.50 80.50 88.55

Total Income 6415.40 6656.60 6717.70 7057.61

Expenditure -5084.20 -5264.50 -5310.10 -5575.61

Operating profit(EBITDA) 1331.20 1392.10 1407.60 1482.01

Interest -27.20 -33.20 -69.70 -73.19

Gross profit 1304.00 1358.90 1337.90 1408.82

Depreciation -359.60 -366.80 -375.40 -394.17

Profit Before Tax 944.40 992.10 962.50 1014.65

Tax -112.00 -143.50 -163.90 -172.78

Profit after Tax 832.40 848.60 798.60 841.87

Extraordinary Items 0.00 0.00 0.00 -

Minority Interest -23.50 -42.40 -31.20 -29.64

Net Profit 808.90 806.20 767.40 812.23

Equity capital 1000.00 1000.00 1000.00 1000.00

Face Value 5.00 5.00 5.00 5.00

Total No. of Shares 200.00 200.00 200.00 200.00

EPS 4.04 4.03 3.84 4.06

13

Key Ratio

Particulars FY09 A FY10 A FY11 E FY12 E

EBIDTA % 24% 21% 21% 21%

PAT % 15% 13% 13% 13%

P/E ratio (x) 86.08 27.34 23.44 19.80

ROE - % 6% 17% 16% 16%

ROCE - % 17% 19% 19% 19%

EV/EBIDITA (x) 6.71 10.30 15.28 14.76

Debt Equity Ratio 0.11 0.11 0.10 0.09

Price/Book Value 1.71 4.56 3.82 3.20

Charts:

• Net sales & PAT

14

• P/E Ratio (x)

• P/BV (X)

15

• EV/EBITDA(X)

Outlook and Conclusion

At the market price of Rs.400.80, the stock is trading at 23.44 x and 19.80 x for FY11E and FY12E respectively.

On the basis of EV/EBDITA, the stock trades at 15.28 x for FY11E and 14.76 x for FY12E.

Price to book value of the company is expected to be at 3.82 x for FY11E and 3.20 x for FY12E respectively.

EPS of the company is expected to be at Rs.17.10 and Rs.20.24 for the earnings of FY11E and FY12E respectively.

During the quarter ended June 30, 2010, Biocon SA, a wholly owned subsidiary of the Company consummated the acquisition of CIMAB´s share of 49% equity shares in Biocon Biopharmaceuticals Private Limited (BBPL). Accordingly, BBPL has become a full subsidiary of the Company.

Biocon and the Center of Molecular Immunology (CIM), based in Havana, Cuba have strengthened their existing research partnership by joining forces for an integrated antibody program in immunology.

The company has launched its new Comprehensive Care Division, dedicated to provide affordable solutions to critical illnesses like nosocomial infections, post surgical complications, trauma and medical emergencies.

16

The company has entered into a long-term supply agreement with Optimer Pharmaceuticals, Inc. for the commercial manufacturing of the active pharmaceutical ingredient (API) -fidaxomicin, the latter's lead product candidate for the treatment of CDI.

In Europe, Biocon expects to launch biogeneric, recombinant human insulin in FY13. Biocon expects to commence Phase III clinical trials for this product in 2QFY11. This product can potentially become a key growth driver for Biocon in the long term, given high entry barriers in the business.

Syngene International, a 100% subsidiary of Biocon, has partnered with Endo Pharmaceuticals to develop a novel biological therapeutic molecule against cancer.

Biocon and Bayer Healthcare -- a subsidiary of Bayer AG and one of the world's leading, innovative companies and medical products industry have entered into strategic partnership to fight the diabetes menace in India.

The company has signed a memorandum of understanding with Malaysia’s Biotechnology Corporation (BiotechCorp) to explore collaboration and potential investment in Malaysia’s biotechnology industry.

We recommend ‘BUY’ this stock with a target price of Rs.460.00 for medium to long term investment.

Industry Overview India's pharmaceutical industry is now the third largest in the world in terms of volume and stands 14th in terms of value. According to data published by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, the total turnover of India's pharmaceuticals industry between September 2008 and September 2009 was US$ 21.04 billion. Of this the domestic market was worth US$ 12.26 billion. Moreover, according to an Ernst & Young and industry body study, the increasing population of the higher-income group in the country, will open a potential US$ 8 billion market for multinational companies selling costly drugs by 2015. Besides, the report said the domestic pharma market is estimated to touch US$ 20 billion by 2015, making India a lucrative destination for clinical trials for global giants. Exports Export of pharmaceutical products from India increased from US$ 6.23 billion in 2006-07 to US$ 5.92 billion in 2007-08 and to US$ 8.7 billion in 2008-09—a combined annual growth rate (CAGR) of 21.25 per cent. According to Mr Jyotiraditya M Scindia, Minister of State for Commerce, pharmaceutical exports from the country have recorded growth rates of 21.61 per cent, 14.37 per cent and 28.54 cent, respectively, in the three consecutive years of 2006-07, 2007-08 and 2008-09.

17

Pharmaceutical exports during April-December 2009 were worth US$ 6.33 billion, according to the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers. Growth According to the All India Organisation of Chemists and Druggists (AIOCD), the pharmaceuticals industry in India will grow by over 100 per cent over the next two years. "The people are increasingly becoming health conscious and the sell of all types of medicines, particularly anti-biotic, will zoom up in the coming years. We expect the business to double by 2012", as per JS Shinde, President, AIOCD. According to Shinde, the pharmaceutical industry is currently growing at the rate of 12 per cent, but this will accelerate soon. The sale of all types of medicines in the country stands at US$ 9.61 billion, which is expected to reach around US$ 19.22 billion by 2012. Further, a RNCOS report titled 'Booming Pharma Sector in India' projects the industry to continue growing at a CAGR of around 13 per cent during 2010-11 to 2012-13. The formulations industry is expected to prosper parallel to the pharmaceutical industry. It is expected that the domestic formulations market in India will grow at an annual rate of around 17 per cent in 2009-10, owing to increasing middle class population and rapid urbanisation. Diagnostics Outsourcing/Clinical Trials According to the research published by RNCOS titled 'Indian Diagnostic Market Analysis' published in January 2010, the Indian diagnostic services are projected to grow at a CAGR of more than 20 per cent during 2010-2012. Generics According to Mr Srikant Kumar Jena, Union Minister of State for Chemicals and Fertilisers, India tops the world in exporting generic medicines worth US$ 11 billion and currently, the Indian pharmaceutical industry is one of the world's largest and most developed. Moreover, as per a press release by research firm RNCOS in May 2010, the report titled ‘Booming Generics Drug Market in India' projects the Indian generic drug market to grow at a CAGR of around 17 per cent between 2010-11 and 2012-13. Mr Anand Sharma, Union Minister of Commerce and Industry and Lim Hng Kiang, Minister for Trade and Industry, Singapore, have signed a 'Special Scheme for Registration of Generic Medicinal Products from India' in May 2010, which seeks to fast-track the registration process for Indian generic medicines in Singapore. According to Lim Hng Kiang, "What we have agreed is that if your (Indian) generics have already cleared the regulations of one of the five countries/ regions - US, Canada, the European Union, UK or Australia - Singapore will take that as 'already

18

cleared' and we will import it (the generic medicines) without any additional clearances." Mr Sharma said, "This (understanding) will facilitate quick registration and approvals (of Indian generic drugs) in Singapore. It is a major movement forward. One-fourth of the world's generics come from India. This has ensured easy availability of life-saving medicines particularly where affordability has been an issue." Mergers and Acquisitions/ Licensing Deals

• Orchid Chemicals & Pharmaceuticals Ltd, a Chennai-based pharmaceutical company, has entered into an agreement to acquire US-based generic marketing company Karalex Pharma LLC, in an all-cash deal.

• In May 2010, Glenmark Pharmaceuticals licensed its chronic pain molecule to Sanofi Aventis for a cumulative deal of US$ 321.7 million.

• Dr Reddy Laboratories has signed an agreement with Alchemia, an Australian Pharmaceutical company, for marketing Fondaparinux sodium (which is used for the treatment and prevention of deep vein thrombosis (DVTs)) in all markets outside of North America. According to the agreement, Dr Reddy's will pay to Alchemia a royalty on sales at an agreed proportion.

• Super Religare Laboratories (SRL), a diagnostic chain has signed a definitive agreement to buy Piramal Healthcare's diagnostic chain for US$ 128.6 million, making it the country's largest diagnostic player.

Government Initiative 100 per cent foreign direct investment (FDI) is allowed under the automatic route in the drugs and pharmaceuticals sector including those involving use of recombinant technology. (DIPP) The Government plans to set up a US$ 639.56 million venture capital (VC) fund to give a boost to drug discovery and strengthen the pharma infrastructure in the country. According to Mr Ashok Kumar, Secretary, Department of Pharmaceuticals, the Government had issued an expression of interest (EoI) for technical and financial bids for the selection of a global level consultant (GLC) for the preparation of a detailed project report (DPR) in order to develop India as a drug discovery and pharma innovation hub by 2020. The Drugs and Pharmaceuticals Manufacturers Association has received an in-principle approval for its proposed special economic zone (SEZ) for pharmaceuticals, bulk drugs, active pharmaceutical ingredients (APIs) and formulations to be located at Nakkapalli mandal in Visakhapatnam district, according to a government press release. According to Mr Srikant Kumar Jena, Union Minister of State for Chemicals and Fertilisers, the Department of Pharmaceuticals has prepared a "Pharma Vision 2020" for making India one of the leading destinations for end-to-end drug discovery and

19

innovation and for that purpose provides requisite support by way of world class infrastructure, internationally competitive scientific manpower for pharma research and development (R&D), venture fund for research in the public and private domain and such other measures. Investment

• The drugs and pharmaceuticals sector has attracted FDI worth US$ 1707.52 million between April 2000 and April 2010, according to data published by Department of Industrial Policy and Promotion (DIPP) in April 2010.

• Indian Immunologicals Ltd (IIL), a subsidiary of National Dairy Development Board, will launch four new vaccines next year. The company is setting up a new manufacturing facility in Hyderabad with an investment of US$ 32.4 million. The manufacturing unit will produce both human and animal vaccine.

Road Ahead According to a report by PricewaterhouseCoopers (PwC) in April 2010, India will join the league of top 10 global pharmaceuticals markets in terms of sales by 2020 with the total value reaching US$ 50 billion.

20

________________ ____ _________________________

Disclaimer:

This document prepared by our research analysts does not constitute an offer or solicitation

for the purchase or sale of any financial instrument or as an official confirmation of any

transaction. The information contained herein is from publicly available data or other

sources believed to be reliable but do not represent that it is accurate or complete and it

should not be relied on as such. Firstcall India Equity Advisors Pvt. Ltd. or any of it’s

affiliates shall not be in any way responsible for any loss or damage that may arise to any

person from any inadvertent error in the information contained in this report. This document

is provide for assistance only and is not intended to be and must not alone be taken as the

basis for an investment decision.

21

Firstcall India Equity Research: Email – info@firstcallindia.com

B. Harikrishna Banking

B. Prathap IT

A. Rajesh Babu FMCG

C.V.S.L.Kameswari Pharma

U. Janaki Rao Capital Goods

E. Swethalatha Oil & Gas

D. Ashakirankumar Automobile

Kavita Singh Diversified

Nimesh Gada Diversified

Priya Shetty Diversified

Neelam Dubey Diversified

Firstcall India also provides

Firstcall India Equity Advisors Pvt.Ltd focuses on, IPO’s, QIP’s, F.P.O’s, Takeover

Offers, Offer for Sale and Buy Back Offerings.

Corporate Finance Offerings include Foreign Currency Loan Syndications,

Placement of Equity / Debt with multilateral organizations, Short Term Funds

Management Debt & Equity, Working Capital Limits, Equity & Debt

Syndications and Structured Deals.

Corporate Advisory Offerings include Mergers & Acquisitions (domestic and

cross-border), divestitures, spin-offs, valuation of business, corporate

Restructuring-Capital and Debt, Turnkey Corporate Revival – Planning &

Execution, Project Financing, Venture capital, Private Equity and Financial

Joint Ventures

Firstcall India also provides Financial Advisory services with respect to raising

of capital through FCCBs, GDRs, ADRs and listing of the same on International

Stock Exchanges namely AIMs, Luxembourg, Singapore Stock Exchanges and

Other international stock exchanges.

For Further Details Contact:

3rd Floor, Sankalp, The Bureau, Dr.R.C.Marg, Chembur, Mumbai 400 071

Tel.: 022-2527 2510/2527 6077/25276089 Telefax: 022-25276089

E-mail: info@firstcallindiaequity.com

www.firstcallindiaequity.com