1. DAVID HARDING CPhI 2008 SHANGHAI JUNE 24–26, 2008 Product Selection for API Manufacturers and Generic Pharmaceutical Companies: A Tool for Success

2. 2 AGENDA About Thomson Reuters Trends in the global generic and API industry Newport Horizon Premium™: an industry standard for API product selection

3. 3 ABOUT THOMSON REUTERS – HEALTHCARE & SCIENCE Part of the Thomson Reuters Corporation Acquired Newport Strategies in 2004 A unique research focus: tracking global generic API development and manufacturing activities High quality, “must have” information for people in –Strategy, Planning and Product Targeting –Business Development & Licensing –Competitive & Business Intelligence –R&D and Regulatory Affairs –API Sourcing –Patents & Intellectual Property Relied upon by the majority of the world’s generic pharmaceutical companies and API manufacturers

4. 4 CONSOLIDATION IN THE INDUSTRY Current consolidation efforts may affect API manufacturers as more dose companies are becoming backward integrated into API manufacture Example: Barr’s acquisition of Pliva –Biogenerics –New dose forms –Presence in emerging markets –Access to API Result: Industry will likely be dominated by a handful of global players plus many small, focused players

5. 5 EFFECTS OF BACKWARD INTEGRATION INTO API More control over cost and access to API Different parts of the value chain may make money in different products Faster response times No one plant can make all APIs required by a typical generic Making just enough for captive use often not economical Other dose companies wary of buying API from a competitor There is still a need for 3 rd party API suppliers!

6. 6 IMPORTANCE OF API IN PATENT CHALLENGES Risk of supplier failure is high for companies involved with patent challenges –Even one day of delay can cost the company FTF status Risk is also high for API manufacturers –Generics may settle with innovators or do deals with other generics who use other API sources –If dose company is backward integrated into API, may switch to internal API source when convenient –If development starts too early, product may be withdrawn from market Backward integration into API can provide advantages –Coordinated API and dose development –Coordinated regulatory submissions –Speedy addressing of any issues –Improved knowledge of polymorphs

7. 7 NEWPORT HORIZON PREMIUM: A GENERIC INDUSTRY STANDARD Launched on March 10, 2008 –NEW version released on June 2, 2008 with Routes of Synthesis covering over 2600 products Expressly designed to meet key generic business needs –Targeting & evaluating products and companies –Identifying licensing opportunities –Tracking competitive developments –Finding early opportunities! Covers 10,000 launched products, 12,000 companies and 92 patent countries Incorporates unique API development intelligence and analysis with Sales, Consumption (kg/IU), Patents and Launched formulations

8. 8 THANK YOU! David Harding Newport Sales Support Specialist Thomson Reuters 215 Commercial Street Portland, Maine 04101 USA + 1 (207) 871-9700 x27 david.harding@thomsonreuters.com