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***-*** Research Laboratories Building blocks for better life

Matrix Consulting Hyderabad India = +919989040404

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Building Blocks for Better life

Teaser This is a Teaser It does not imply an offering of securities. It is intended for Private circulation and for the information of the recipient only. This document is confidential

STRATEGIC RELATIONSHIPS GROUP


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Confidentiality Agreement

The undersigned recipient acknowledges that the information provided by ****** ResearchLaboratories in this business plan is confidential and agrees not to disclose it without theexpress written permission of ****** Research Laboratories.

It is acknowledged by the recipient that the information contained in this business plan is inall respects confidential in nature, other than information which is in the public domainthrough other means and that any disclosure or use of same by the recipient may causeserious harm or damage to ****** Research Laboratories.

Upon request, this document is to be immediately returned to ****** Research Laboratories.

___________________ Signature ___________________

Name ___________________ Company Name ___________________

Date

Note:This is a business plan. It does not imply an offering of securities, for private circulation to the intended recipient only.


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GenesisDrug discovery has always occupied a center stage in every pharmaceutical industry.Billions of dollars were spent in the past and will be spent in the future, because it is linkedto quality of human lives. Understanding the human genome vastly expanded the targets for drug intervention and even permits scientists to custom-tailor pharmaceuticals to individual needs. For medicinal chemistsidentifying a target is a very important task and designing amolecule, which binds to the target at nano molar concentration isanother challenge for scientific intelligence. Another challengealso involves the binding of targets at nano molar concentrations.

New chemical entities (NCEs) are compounds which emerge fromthe process of drug discovery. These will have promising activityagainst a particular biological target thought to be important in disease; however, little willbe known about the safety, toxicity, pharmacokinetics and metabolism of this NCE inhumans. It is the function of drug development to assess all of these parameters prior tohuman clinical trials. A further major objective of drug development is to make arecommendation of the dose and schedule to be used the first time an NCE is used in ahuman clinical trial ("first-in-man" (FIM) or First Human Dose (FHD)).

In addition, drug development is required to establish the physicochemical properties of the

NCE: its chemical makeup, stability, solubility. The process by which the chemical is madewill be optimized so that from being made at the bench on a milligram scale by a syntheticchemist, it can be manufactured on the kilogram and then on the ton scale. It will be further examined for its suitability to be made into capsules, tablets, aeresol, intramuscular injectable, subcutaneous injectable, or intravenous formulations. Together these processesare known in preclinical development as CMC: Chemistry, Manufacturing and Control.

Many aspects of drug development are focused on satisfying the regulatory requirements of drug licensing authorities. These generally constitute a number of tests designed todetermine the major toxicities of a novel compound prior to first use in man. It is a legalrequirement that an assessment of major organ toxicity be performed (effects on the heart

and lungs, brain, kidney, liver and digestive system), as well as effects on other parts of thebody that might be affected by the drug (e.g. the skin if the new drug is to be deliveredthrough the skin).

While, increasingly, these tests can be made using in vitro methods (e.g. with isolated cells),many tests can only be made by using experimental animals, since it is only in an intactorganism that the complex interplay of metabolism and drug exposure on toxicity can beexamined.


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The process of drug development does not stop once an NCE begins human clinical trials.In addition to the tests required to move a novel drug into the clinic for the first time it isalso important to ensure that long-term or chronic toxicities are determined, as well aseffects on systems not previously monitored (fertility, reproduction, immune system, etc).The compound will also be tested for its ability to cause cancer (carcinogenicity testing).

If a compound emerges from these tests with an acceptable toxicity and safety profile, andit can further be demonstrated to have the desired effect in clinical trials, then it can besubmitted for marketing approval in the various countries where it will be sold. In the US,this process is called a New Drug Application or NDA. Most NCEs, however, will fail duringdrug development, either because they have some unacceptable toxicity, or because theysimply do not work in clinical trials.

As this drug discovery process becomes more expensive it is becoming important to lookat new ways to bring forward NCEs. One approach to improve efficiency is to recognize thatthere are many steps requiring different levels of experimentation. The early phase of drug discoveryactually has components of real innovation,components of experimentation andcomponents that involve set routines. This model of Innovation, Experimentation, andCommoditization ensures that new ways to do workare adopted continually. This model also allows thediscipline to use appropriate internal andexternal resources for the right work.

Building blocks and screening compounds are significantly important (crucial) in medicinalchemistry. Building blocks provide versatility to medicinal chemists for designing a varietyof inhibitors.

****** recognized the need of building blocks in drug discovery and decided to enter intothat arena. In fact, it has already started offering premium quality, and highly versatile,building blocks to the scientific community. Another important area of interest is bio-

chemicals. ****** decided to provide a variety of inhibitors and bio-chemicals to thescientific community.


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Lately custom and contract synthesis has become an attractive target from big pharmacompanies. Being a facility in India, ****** offers a wide range of custom and contractsyntheses. The company also offers scaffolds of libraries for high throughput screening.Furthermore, it often suggest additional interesting scaffolds to the customers. ******routinely undertakes rather complex organic molecular synthesis. ****** also added FullTime Equivalent (FTE) service in its port polio.

In contract & custom synthesis, ****** only undertakes chemistry that they believe whichcan reasonably be accomplished. ****** Research specializes in lead optimization, custom,and contract research. In the near future the company will offer high quality screeninglibraries and chemical intermediates for the pharma and bio-tech industries. ****** employsapproximately 20 people in San Diego and 500 people in Hyderabad (India). Both of thesesites will be supporting each other to cater to the needs of our clients. The companysfacilities include state of the art equipment (NMR, LCMS, and HPLC) and fully equippedlibrary facilities.


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Mission Statement o Profitably Accelerate Drug Discovery.o Become a Major Player in Tools for

Drug Discovery.o Increase Shareholder Value

o ****** Research Laboratories is committed tooffer a variety of drug discovery tools to

researchers in accelerating drug discovery. It is also committed to developing greenchemistry to preserve the environment. The ultimate goal of ****** is to offer themost affordable healthcare for the common man by helping researchers in a costeffective environment.

o The companys goal is to become a premier company in bio-chemicals and a leadingmanufacturer of building blocks and screening compounds.

o Aspiring to carry a reputation in the market place for developing and deliveringproducts of high quality and at a fair price ****** would achieve this through cuttingedge technology (product development) and innovative marketing.

o To accomplish the goal ****** is seeking to raise capital finance, management talent,as well as larger and more efficient facilities.

o In pursuit of the goals, ****** team resolve to treat partners, customers, investorsand community with care and promise to deliver credible results year after year.

o For years to come the world would see ****** providing great service to the scientificcommunity by providing drug discovery tools at affordable prices.


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Company Overview:

****** Research Laboratories was founded in May **** and since then, the company isproviding drug discovery tools to the scientific community. Within a short time ******became a leading manufacturer of building blocks and bio-chemicals in the nation.

The legal name of the company is ****** Research Laboratories. This is a California state S.Corporation with state ID # ****** and FID # *******. Our principal offices are located at:10366 Roselle St. Ste CSan Diego, CA 92121

We have approximately 1850 sq. feet of office space and 1850 sq. feet of laboratory space.Our current capacity accommodates 20 chemists and 5-6 office staff which is envisaged tobe adequate for company needs for next 2 years.

From its headquarters in the US, ****** manages its global activities through a team of highly motivated and talented staff who understand the importance of customer serviceparticularly in responding promptly to and assisting with queries as well as any questionsin relation to our products and the services we offer. ****** takes full advantage of moderninformation communications technology to streamline its overheads and offers a highquality, flexible and responsive business.

The primary goal of ****** is to accelerate and facilitate the drug discovery process of pharmaceutical and biotechnology research laboratories by providing rare building blocksbearing highly pharmacophoric fragments within a timely and cost effective manner. ******seeks to anticipate the needs of its customers within the life science industries. Thisflexibility and adaptability is the main driving force for the continued changes and isanother core value in the ****** business model.

By providing unique products of the highest quality the company aims to be the preferredchemistry partner of pharmaceutical and biotech companies worldwide.

Regulations and Permits:

****** Research Laboratories primarily is a research driven company, the lab also does smallscale manufacturing, mostly under 100 gm scale.

****** has all necessary permits to operate and has up-to-date record of inspections. Thesepermits include business license. Fire department certification, resale permit, EPAcertification for disposal. ****** believes in preserving the environment by developing greenchemistry and believes in maintaining high ethics at work.


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Business Over view:

Since its inception, ****** has been involved in bio-chemicals, building blocks, specialtychemical synthesis. ****** is also involved in custom and contract synthesis.

****** is a dedicated supplier of unique research chemicals (building blocks, screeningcompounds & natural products) as well as a specialist provider of integrated drug discoverysolutions to the life science industry.

The companys current collection of building blocks and rare screening compoundsexceeds large number and is continuously growing through both in-house compoundsynthesis and Indian partnership initiative program. All the compounds are available from

grams to 100's of grams. Many can also be synthesized in larger quantities upon request.****** Specializes in:

o Early stage proof-of-concept (POP) projects to validate biological hypothesesValidation of screening hits for exploratory medicinal chemistry (hit-to-lead)Intermediates for expediting med chemistry

o SAR campaigns

o Drug candidates for in vivo studies

o Reference agents for bio-profiling

o Reference metabolites

o Building blocks for combinatorial chemistry

o Key intermediates for pharmaceuticals

o Key intermediates for biomaterial and biosensor applications

o The primary aim of ****** is to improve and accelerate the efficiency andeffectiveness of the drug discovery process by offering innovative technologies andsolutions based on novel applications of chemistry and biology.


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ProductsSince its inception ****** continues to develop and strengthenits global reputation for specializing in the synthesis andsupply of rare small molecule compounds to the pharmaceuticaland biotech industries.

1. Building Blocks (pyrimidine derivatives, indolederivatives, unnatural amino acids, purines,azaindoles, pyrrolopyrimidines, pyrazolopyrimidines, sugar derivatives, imidozolederivatives, pyrazole derivatives, etc.) and screening compounds for drug discovery.

2. Bio-Chemicals

A. Inhibitors (Kinase Inhibitors, in particular p38 map kinase, tyrosone kinase,caspase, -secretase, PKC, calpain, casein kinase, CDK, COX, MMP, and IP-K inhibitors etc. and protease cock tails)

B. Bio-Chemicals:a. Detergents: Octyl glycosides, dodecyl maltopyranoside, dodecyl

glucopyranoside, SDS buffers, non-ionic detergentsb. Zwitter ionic detergents: ASB-14, ASB 14-4, ASB-16, ASB-C6, ASB-

C7, CHAPSc. Calcium channel probes: Fluo-3AM , Fluo-3, Fura2, Fura2-AM,BAPTA, BAPTA-AM

d. Kits: protein tyrosine kinase, ELISA

o Contract research, custom synthesis: In this arena, ******(USA) will have an advantage over its competition due toits proximity to Indian manufacturing facilities.

o Lyophilization services: Lyophilization is our expertise.


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The continued use of combinatorial chemistry to generate interesting compounds for high-

throughput screening and of parallel synthesis for leadoptimization, has led to the quest for more novel buildingblocks. ****** offers a diverse and unique set of over 10,000heterocyclic (small (hetero) cyclic (fused) ring compoundswith one or more chemical handles) such as imidazoles,pyridines, pyrazines etc as well as a variety of alycyclic(piperizines, piperidines) and aromatic compounds whichare continuously being used to assist medicinal and syntheticchemists globally in developing hit generation and hit-to-leadoptimisation libraries.

The compounds are available in multi-gram (1-100 g) quantities (purity 90%min,typically >95%) which make them suitable for high-throughput and combinatorial synthesisor scale-up of lead compounds. The majority of these intermediates are offered ex-stockand dispatched them within 48 hours of receiving an order. Where a compound is out of stock it can be provided an expected delivery date.

Novel compounds used for initial screening for biological activity is now available throughnew screening compound service. ****** currently offers novel libraries each consisting of approx 8000 unique scaffolds/compounds as well as a further library based on modifiednatural products. All the compounds are available in both regular plates as well ascustomer requested vials.

The compounds in the collection are:o Diverseo Drug-like, and generally follow Lipinski's rule of 5o High qualityo These libraries are available on ISIS/Base and SD format.o Quality Control and Compound Purity

Structure and purity of all compounds are verified by NMR and or mass spectrometry. Thecompounds have a minimum purity of 90% but the company typically supply intermediateswith purity >95%.

Custom Synthesis/Contract ResearchOutsourcing can be an important strategic component of any clients R&D portfolio. It is adecision which factors in

1) Cost-risk benefits (internal vs. external),2)Timing,3) Potential CROs skill-set capabilities and business practices.


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In medicinal chemistry, this strategy allows in-house chemists to focus on the design and

assembly of new lead molecules vs. routine syntheses which can be outsourced. Virtualbiopharmaceutical companies have embraced outsourcing in order to direct maximumstart-up funds to reaching proof-of-concept instead of immediate creation of infra-structure.

****** offers expertise in a wide range of custom synthesis and contract researchchemistry covering all aspects of lab-scale organic and medicinal chemistry.

o Preparation of custom novel organic compoundso Synthesis of known reference compoundso Custom synthesis of small compound librarieso Optimization of existing synthetic methods, discovery of novel approaches to the

synthesis of target moleculeso Collaborative or contract research projects to develop and synthesis new

compounds designed for specific functionso All these services are available exclusively and confidentially on FTE or fee for

service basis.

****** Customers are basically Pharma Companies includingPfizer, Amgen, Astra Zeneca,Merck etc. and Research Institutes such as NIH, various Universities and Biotechcompanies

****** defines its market as a drug discovery industry and as more funding flows into drugdiscovery, its products become higher in demand. With 15-20% more additional fundingallotted to research in big pharma companies who are struggling to get new molecules(drugs) into the market, ****** senses an opportunity to grow considerably for years to come.

The Market:R&D Spending by U.S. Biopharmaceutical Companies Reaches Record $58.8 Billion in 2007

Americas pharmaceutical and biotechnology research companies invested a record $58.8billion last year in the research and development of new life-changing medicines andvaccines an increase of nearly $3 billion from 2006, according to analyses by thePharmaceutical Research and Manufacturers of America (PhRMA) and Burrill & Company.

Investment in research and development by Americaspharmaceutical research companies grew despite achallenging economic environment and. Over thepast seven years, Americas pharmaceutical researchcompanies have consistently invested around 18 percent of sales on R&D activities.


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As in past years, there are an increasing number of potential new drugs entering clinicaltesting. Today, there are more than 2,700 medicines in development in the U.S. for nearly4,600 different indications. Five years ago, there were about 2,000 medicines indevelopment.

U.S. pharmaceutical companies dedication to research has been observed by manyindependent, objective experts. For instance, the nonpartisan Congressional Budget Office(CBO) stated in a recent report: The pharmaceutical industry is one of the most research-intensive industries in the United States. Pharmaceutical firms invest as much as five timesmore in research and development, relative to their sales, than the average U.S.manufacturing firm.

Americas pharmaceutical and biotechnology research companies continue to pave theway for the development of future treatments and cures, said PhRMA President and CEOBilly Tauzin. Simply put, R&D is the lifeblood of pharmaceutical research companies. Lastyears investment builds on over 25 years of growth in R&D spending as our researcherscontinue the search for new and improved therapies to tackle a wide range of diseases andconditions, such as cancer, heart disease, HIV/AIDS and Alzheimer's."

The current pipeline includes more than 600 medicines to treat cancer, over 300 specific torare diseases and more than 275 medicines for heart disease and stroke. This activitydwarfs the pipelines in other parts of the world, such as Europe and Japan, partly reflectingexisting policies in the U.S. that foster innovation.

With such explosive investments in drug research ****** sees an excellent opportunity for itself by shaping itself as a leading provider of new drug research tools as all the researchrequires building blocks and screening compounds to expedite the research programs.Thus ****** sees high growth potential in the industry if backed up by quality human andfinancial resources.

Competition:

****** competes directly with Cal Bio-Chem, Biomol, Auxxora, and Sigma-Aldrich and thecompanys advantage over the competition being its cost and quality of products.


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Capital Requirements:

To meet the expected demand and future growth ****** is seeking the financing necessary tofund the Marketing efforts and strengthen the lab with instruments such as roboticequipment for inhibitor library and natural products, HPLC and LCMS, etc. and to fund thepayroll of the scientists. ****** is proposing to raise the will be raising immediately US $ 5million against US $ 5,00,00,00 as equity divestment and US $ 5,00,00,00 as debt from Banksand financial institutions as level one funding. To take the company to the next level byestablishing research laboratories in India and US and establish its own manufacturingoperations ****** would raise US $ 20.00 million during 2010-11 in two phases.

With the Level 1 funding of US $ 10 million funding the companys sales targets are asfollows:

Year actual Actual Estimate ProjectionsSales $ 20,00,000 $ 345,00,000 $ 1,500,00,00 $ 3,000,00,000Gross profit $ 12,00,000 $ 190,00,000 $ 760,00,000 $ 1,600,00,000

o The sales would occur from sales in building blocks & bio-chemicals.o The company has a healthy gross profit margin of 60-65%o The first round of funding would be utilized for :

(i) Funding increased working capital requirements(ii) Installing additional lab equipment(iii) Recruit and fund the payroll of the scientists.(iv) Increase visibility for ****** thru web marketing, monthly bulletin,

attending conferences and work shops

(v)

Kick start research and development budget for new productdevelopment.

CAPEX Requirement US $

Current assets Phase 0Inventory 1,00,0000Subtotal 1,00,0000Fixed assetsLab Equipment 5,00,0000Research for new drug discovery 1,00,0000

Visibility and Marketing effort 1,00,0000Subtotal 7,00,0000Cash Balance for Working capital 2,00,0000


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CONCLUDING REMARKSGENERAL

From the foregoing detailed analysis of the Company proposal for plans to put up a *** ********* it can be concluded that:

o The Company has been extremely careful and selective in preparing its businessand Research program.

o It has drawn up the scheme after adequately studying drug tools for new drugdiscovery.

o The plans have been made in such a way that the salability of the Products could bealmost assured with least marketing cost to the Company.

TECHNO ECONOMICAL ASPECTS

The factory is set up in a suitable location with minimum capital investment. The foundersand management are highly qualified and experienced professionals and posses allrequired technical know-how in inventing tools for drug discovery and commercialexpertise to market the Products. The promoters would be on full time occupation with theCompany. A suitable and broad based marketing network has already been planned whichcould be taken expanded further if found necessary to achieve for proposed sales targets.

FINANCIAL ASPECTS

The Capital investment proposed is comparatively low and the promoters have necessaryresources to bring in and organize the proposed capital. The financial assistance soughtfrom Banks is well within normal of lending. The projected operational results showreasonable profit generation by the unit to enable it to meet its debt servicing obligations. Aconsiderable part of cash generation is proposed to be ploughed back every year tosupplement increased working capital requirement. Thus the venture is a thoroughly wellplanned organization and is a sound and viable proposition.

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