1. Strictly confidential How to achieve sustainability in rapidly changing environment? Pavle Marjanović, Country Manager for Actavis Republic of Serbia and Republic of Montenegro October 5 th, 2011

2. Main changes in the pharmaceutical industry Limited number of new molecules in R&D pipelines (except some “me too” molecules)=> lack of fundamental innovation/patent expiry Aging population, higher demand for the therapy Less money in sick fund(s) Reference pricing, tenders leading to constant price erosion (example paclitaxel USA) Liquidity issues Big Pharma enters Gx segment Prescription limitations Focus on medical compliance, prevention Focus on legal compliance and ethics 2

3. Generic industry ensures healthcare sustainability Gx medicines enhancing competition – SAVINGS Drugs are becoming affordable especially for chronic diseases Gx medicines could provide innovation – new formulations, methods of delivery 3

4. Gx entry should be supported by relevant authorities Time limited “exclusivity” for the first Gx entry – SAVINGS! Value of products going off patent expected to increase from 2011 – SAVINGS! Evaluating each segment of drug approval seeking possible “fast tracks” for Gx 4

5. Serbia vs. relevant European markets 5

6. Gx entry brings sustainability to healthcare system Lowering prices could enable broader number of patients treated Statins consumption among lowest in Europe Reinforcing the position of “family doctor” making decisions for the treatment of the major chronic diseases Old drugs (from ‘60, ’70) could be replaced with new generation Gx drugs at the same price Typical/Atypical antipsychotics – 50% of patients treated with typical antipsychotics Antidepressants - 40% of patients treated with older antidepressants Antidiabetics Sartans Peculiarity of the Serbian market – Gx industry brings innovative molecules to the market at affordable prices OTC status liberalization (ranitidine, loratadine etc) Savings could be used for extending generic therapeutic categories 6

7. Actavis role in bringing sustainability to healthcare system Meeting healthcare needs More affordable prices Modern therapies More patients treated Overall cost saving …in partnership with relevant authorities and through transparent dialogue! 7

8. This is not the best way to calculate healthcare budget figures 8