There are more than 12500 of us building a new future with our ideas and actions. This is the collective energy that we can unleash to realize our dreams. The key lies in doing this as efficiently as possible. Our winning habit comes from harnessing our collective power into a single-minded pursuit of our goal.

For the last four years we’ve stayed focused on the Healthy Billion goal. As we go about our next goal to post sales

of over $ 3 bn by 2015, there will be new challenges that we will have to overcome, new vistas that we

will have to explore. But that is exactly what makes each journey interesting.

When we look back, we see a luminous path. This has been illumined by our achievements along the way. As a new path opens up, let us set it aglow with our actions. Let our winning ways make it brighter than before.

P. R. Joshi

Yes, we’ve done it !

May 2011 Volume 18 No.1

Dear Zydans,

A lot has been said about a ‘winning habit’ – it creates a rhythm that keeps building a momentum and lifts our spirits. I also believe that alongwith this habit comes a mindset, an attitude. It creates buoyancy that becomes a springboard for future successes.

When we look back at our journey over the years, this theory does seem to get reinforced. Starting from 1995, we have boldly gone forth and set ourselves goals – specific targets without any ambiguities. Each time, we backed up our plans with action, walking the talk every inch of the way. From a turnover of Rs.1000 by the year 2000, $ 400 million by 2006-07 and now the Healthy Billion target of crossing sales of over $ 1 bn in 2011, our winning habit continues. Every step of the way, we have evolved and in the process have transformed ourselves.

In 1995, we were an India-focussed company. A decade later we had confidently made our entry into the global generics market and were expanding our global footprint. And here we are today, poised to move on Beyond the Billion – with new goals and new aspirations.

At the start of the HB year we looked at the colours of celebration and ended the year by saying there would be a billion smiles across the Zydus world. Indeed, the colours of celebration that have brought these billion smiles are a result of our collective efforts. Across USA, Europe, Japan, Latin America, Africa and Asia the smiles were the confidence of a winner.

Our group enters the billion dollar league

It was a unique moment in our corporate history – a moment that we had been planning on for the last 4 years. On 31st March 2011, it was declared that we had achieved the ‘Healthy Billion’. It’s truly a moment of pride for all Zydans as it is the collective efforts of all Zydans that has made this feat possible.

We now take the next big leap forward, stepping beyond the billion to achieve sales of $ 3 billion by 2015 and become a research driven pharma major by 2020.

Towards the Healthy Zydus

Bill

ion

The learning wheel pg 20-22

What’s InsIde

New beginnings pg 2-3 International beat pg 5-9 India updates pg 12-16

News updates from Moraiya, ZRC, PTC, Zydus Wellness and ZAHL pg 17-19

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A new beginning : Bayer Zydus Pharma

One of our models for growth has been to forge win-win partnerships with global pharma majors. We have successfully collaborated with Nycomed to create Zydus Nycomed and with Hospira to create Zydus Hospira. Both joint ventures have helped their respective partners scale higher peaks in terms of growth and profitability.

Recently, our group joined hands with Bayer Healthcare to create a new 50: 50 joint venture company: Bayer Zydus Pharma to market pharma products in India. To create this joint venture Bayer HealthCare has contributed its existing pharmaceutical division comprising its sales and marketing business in India to the new company. Our group has contributed the women’s healthcare products of Evona and the diagnostic imaging business. In the coming years, the new JV also intends to focus on the sales and marketing of the future patented pipeline of Bayer’s pharmaceutical products. Bayer Zydus Pharma will operate in key segments of the Indian pharmaceuticals market with a focus on: women’s healthcare, metabolic disorders, diagnostic imaging, cardiovascular diseases, anti-diabetic treatments and oncology.

Seen here are our Chairman and Managing Director, Mr. Pankaj R. Patel and Mr. Stephen Gerlich, Group Head, Bayer Group of Companies at the signing of the agreement of the JV. The teams from Zydus and Bayer are seen posing for a photograph after the JV signing ceremony.

Our IND application of ZYGK1 for treating diabetes receives USFDA approval

Our group has received an approval from the USFDA for the IND application of ZYGK1. Designed and developed at the Zydus Research Centre, the NME is a potent and orally administered small molecule glucokinase activator.

Glucokinase (GK) is the enzyme that acts as a glucose sensor in the pancreas and regulates glucose metabolism in the liver. When, circulating glucose levels rise above a certain threshold, the glucokinase enzyme enhances insulin release from pancreas and decreases glucose production in liver. In normal individuals, the pancreas secrete insulin in response to increased levels of glucose in the blood. In patients with Type 2 diabetes, there is a reduction of GK activity in the pancreas and the liver.

In multiple preclinical models of Type 2 diabetes, ZYGK1 was found to be effective in controlling both fasting and non-fasting blood glucose. ZYGK1 showed very good safety profile in preclinical studies. Activating GK with small molecules such as ZYGK1 lower blood glucose levels by enhancing the ability of the pancreas to sense glucose, which leads to increased insulin production. Simultaneously, glucokinase activators increase the net uptake of blood glucose by the liver. Glucokinase activators, such as ZYGK1, represent a promising new class of drugs for the treatment of Type 2 diabetes.

Setting up a new facility dedicated to Quality

In keeping with our expansion plans over the next five years, a new building dedicated to Quality Control (QC) operations is being set up at Moraiya, Ahmedabad. The foundation stone laying ceremony was performed by Mr. M. K. Patel, Managing Director, Zydus Technologies and Mr. R. R. Tuljapurkar, President, Corporate QA, on 9th April 2011. A four storeyed, modern structure spread over an area of more than 10000 sq.mtrs., the new facility will offer all quality related services such as QC and Microbiology, Quality Assurance and Validation, Stability and Analytical Method Validation etc.

The building which will have a unique pyramid structure at the entrance is expected to be ready next year.

The Economic Times Awards for Corporate Excellence 2010

In the last edition of Zydan News, we had reported that our group had been declared the ‘Emerging Company of the Year’ by the Economic Times Awards for Corporate Excellence 2010.

A grand award ceremony was held at Hotel Trident Oberoi, Mumbai on 8th January 2011 with the who’s who from India Inc. attending the function. Our Chairman and Managing Director, Mr. Pankaj R. Patel is seen here receiving the award from Environment Minister, Mr. Jairam Ramesh.

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As we take our next step beyond the billion, our Teams BU 1, 2,3 and 4 got together to plan the budgets for the year ahead. We bring you glimpses of the Budget Meets of our marketing BUs and divisions.

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A new beginning at Rio de Janeiro

Our new warehouse located at Rio de Janeiro was inaugurated by Dra Larissa from the ANVISA inspection team on 24th January 2011.

Strengthening partnership ties

On the completion of 5 successful years of sales partnership with the distributors, Navarro from São Paulo which is our best performing distributor in Brazil, a plaque of appreciation was presented to the owner of Navarro, Mr Marcelo Navarro. Seen here are Mr. Amit Dave, Elizabeth Prado, Sales Supervisor and Silvio Reis alongwith Mr. Navarro and his team.

Connecting with customers

There have been various intiatives undertaken by the field force in Brazil to improve customer connect and market reach. Our field representative, Luis Felipe Sampaio is

seen here with Dr. Fernando Figueiredo and field representative, Sergio Rodrigo is seen posing with pharmacist Dra. Jenifer Leite at a pharmacy on Pharmacist Day.

News from Brazil

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On the international beat - a whistle-stop tour of Europe, US, Japan, Brazil, Africa and South East Asia

A salute to the resilient spirit of Team Japan

In February this year, Japan was rocked by a massive earthquake followed by a washout by the Tsunami waves. The conditions were grim as there was widespread destruction and radiation fears loomed large.

Despite these odds, team Zydus Japan has achieved its targets and has been a key contributor to the Healthy Billion target. The resilient spirit of the team has really proved that if you have the will and commitment ‘Nothing is impossible’. We salute this spirit and express our solidarity to these brave people.

The learning curve

Various training programmes were organised for our team at Brazil. For the teams working on Quality Control and Quality Assurance, training programmes on specific technical documentation, following standard operating procedures and GMPs were organised. Other training programmes include Practice - a cyclic training session, RDC17 - Dynamic Training, and training on regulatory procedures and GMPs.

Our Dy. Managing Director, Dr. Sharvil P. Patel visits our Brazil office

In December 2010, Our Dy. Managing Director, Dr. Sharvil P. Patel visited our offices at Brazil. During his trip he inaugurated the Biologics Department at our office at Nikkho, Brazil. He is seen here at the inauguration alongwith Mr. Ashok Bhatia, President BU ROW and Mr. Amit Dave, Chief Executive Officer, Zydus Brasil Ltda. and other team members at Brazil.

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Launch of Amolodipine in Spain

Our representative at Zydus Spain rep, Ada, selling amlodipine at one of the pharmacies.

Seminar on the India-China Cooperation in the Pharmaceutical Sector in Beijing

The Embassy of India, Beijing alongwith the Federation of Indian Chamber of Commerce and Industry (FICCI), the Indian Drug Manufacturers Association (IDMA) and the China Chamber of Commerce for Health and Medical Products Import and Export (CCCMHPIE) had organized a seminar on the ‘India-China Cooperation in the Pharmaceutical Sector’ at Beijing on 15th March 2011.

The objective of the seminar was to provide a platform for key stakeholders of the Indian and Chinese pharmaceutical industry to discuss and share insights on the recent trends and advances in the pharmaceutical sector and also look at the growth opportunities in the emerging markets by leveraging the strengths of both these countries. The emerging markets are poised to be a major growth driver in the global pharma market by 2015.

Mr. Ashok Bhatia, President, BU ROW presented his views on the ‘Value Proposition of the Indian Pharmaceutical Sector to China’ at the seminar.

Inauguration of our new office at Mexico

The office of our new subsidiary in Mexico, Zydus Pharmaceuticals Mexico S.A.de C.V was inaugurated by our Dy. Managing Director, Dr. Sharvil P. Patel. He is seen here alongwith our Executive Director and COO, Mr. Ganesh Nayak, Mr. Bernardo Frisbie, General Manager, Zydus Pharmaceuticals Mexico, Mr. Prashant Desai, Vice President - Operations, Zydus USA and the team at Zydus Mexico.

Our group has successfully launched Amolodipine in the Spanish market through our wholly owned subsidiary, Laborotorios Combix, Spain. After the acquisition of Combix in 2008, Amolodipine which has been developed at our Pharmaceutical Technology Centre and manufactured at our manufacturing unit at Moraiya, is the first Zydus product to be launched by the company.

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57th MMA 2011, Yangon

The Zydus team at Myanmar participated at the 57th Annual Conference of the Myanmar Medical Association (MMA) held at Yangon in January 2011. Zydus’ stall, located at a very strategic location, was quite attractive with well decorated counters, product displays, banners and literatures to showcase our key products. The entrance of the conference which was inaugurated by the President of Myanmar was sponsored by our group.

As part of the conference, two symposia were organised by our team, one on ‘Health Challenges in the new millennium with a focus on cardiology, diabetology and hepatology’ and the other on ‘FAQs in Acute Pain Management’. The first symposium had three eminent speakers and KOLs leading the discussions on the topic and more than 400 doctors participated in the symposium. The second one, focused on acute pain management was chaired by Prof. Kyaw Myint Naing, an Orthosurgeon and President of MMA and the Myanmar Medical council and the key speaker for the meet was Prof. Myint Thaung, Head Orthosurgeon, University of Medicine. The key brands showcased at the conference were Nucoxia and Eurovit. Our team also hosted the Presidential lunch at the conference. More than 1500 doctors from across the country participated at the conference. Our team also participated in similar MMA conferences held at Mandalay, Magwe and Monywa in Myanmar.

Activities at Myanmar

The Zydus brand crossword makes a mark at the orthopaedic conference at Myanmar

Our team at Myanmar also participated in the two day conference of the orthopaedic society held on 10th and 11th December at Yangon. Our team from Zydus was dressed in T-shirts bearing the name of our brand, Aldren. More than 160 doctors visited our stall. The main attraction of the Zydus stall was the Zydus Crossword which had clues on the leading brands of our group.

A workshop on brand building

Our group currently ranks 6th in the pharmaceutical market of Myanmar. Sprucing up our efforts in marketing and brand building in this market, a brand building workshop was organised for our team at Myanmar on 17th and 18th March 2011. The workshop focussed on improving communication skills and how to convey the brand message strongly and effectively.

Zydus Hospira declared the Lowest Risk site

The Zydus Hospira facility located at Pharmez, Ahmedabad, has been rated as the ‘Lowest Risk’ site by the Hospira Corporate Audit team. This is based on the audit of all the facilities of Hospira across the world. We congratulate Team Zydus Hospira on this achievement.

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Our group has successfully launched Amlodipine in Japan through our subsidiary Zydus Pharma Japan. We are the first Indian company to launch a product manufactured in India in Japan. The team also launched Rabeprazole and Glimeperide in Japan, both of which were Day 1 launches. With these launches the team is well on its way to achieve its goal of launching 10 new products each year, over the next 5 years and achieving sales of 10 Billion Yen by 2014 and 20 Billion Yen by 2018.

Made in India, Launched in Japan – Amolodipine launched in Japan

Doctors’ day out on the Golf Course in South Africa

Mr. Tyrone Kundan, our Medical Representative in South Africa organised an interesting activity for leading doctors and pharmacists in South Africa. Doctors tried a hand at the game of golf and thouroughly enjoyed it. The initiative was highly appreciated by the doctors and pharmacists. Educating people on diabetes management in Sudan and Uganda

On 14th November 2010 which is the World Diabetes Day, our team at Sudan had organized a diabetes detection and education camp at Khartoum, Sudan. Promoting our brand Sugarfree at the camp, the participants at the camp were offered karakade, the traditional drink of Sudan which is made out of dry leaves of hibiscus and were encouraged to use Sugar Free instead of sugar. The Governor of Khartoum also attended the camp and savoured the drink.

At Uganda, the Chairman of the Uganda Diabetes Association, Professor Marcel Andrew Otim addressed the participants of the medical camp on the importance of managing diabetes. Leading physicians from across Uganda also participated in the camp. Strengthening the Sugar Free market in Uganda, Zydus Uganda recently introduced the 330’s pack and Sugarfree sachets in addition to the 110’s pack, 360’s pack and 100 gms powder which are currently marketed in Uganda.

Our team launches Mel OD in Thailand

The year 2011 began on a high note for our team at Thailand with the launch of the NSAID- Meloxicam (Mel OD) 7.5 mg and 15 mg in January. The bioequivalence study for this NSAID was successfully conducted in one of the Government CROs , which gives us an edge in gaining quick access to the big Medical University Hospitals, in addition to the small hospitals. The field force has already started promoting the product in the market. Our group is the leader in the Omeprazole injections and Nifedipine segments and plans to target various other therapeutic segments in this $3bn market.

Our team participates at the Thai Rheumatism Association (TRA) exhibition held at Hua Hin from 19th-20th March 2011.

Team Thailand participates at the 10th GI Live Endoscopy Demonstration

Growing at a rapid pace, Ocid IV has become the leading brand in the Gastrointestinal (GI) segment in the pharmaceutical industry of Thailand. To further strengthen our position in this key market, our team at Thailand participated at

the ‘10th GI Live Endoscopy Demonstration - Unique Scenarios of Advanced Endoscopy’ conference held at the Queen Sirikit National Convention Center in Bangkok on 16th February 2011. This gave the team an opportunity to interact with key GI specialists from across Thailand. More than 100 doctors visited the Zydus stall represented by Dr. Somchai (Siriraj H.), Dr. Varosha (Chulalongkorn), Dr. Tanissa (Police H.), Dr. Udom (Siriraj H.).

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Zydus France says Namaste at Pharmagora, Paris

Zydus France participated at the Pharmagora show held at Paris from 26th to 28th March 2011. Pharmagora, which brings together pharma professionals from across Europe on a common platform, is one of the most prestigious pharma conferences in the region. Zydus’ stall was very chic with an Indian look and feel as the respresentatives at the stall were dressed in the Indian attire. The conference provided an opportunity for our team to interact with key stakeholders from the pharma industry in Europe.

Team Vietnam organises the Bonmax Workshop for doctors

To tap the Women’s Healthcare segment in Vietnam, a CME was conducted on 19th February 2011 for the doctors on Bonmax (Raloxifene), our leading brand used in the treatment and prevention of osteoporosis in menopausal women. The speakers at the workshop included Prof. Thit Lwin, HOD, Traumatology department, Yangon Hospital, Myanmar, Prof. Nguyen Duy Tai, HOD, Obstetrics/Gynaecology , HCMC Medical University, Vietnam and Prof. Tran Van Thiep, HOD , Oncology, HCMC Medical University, Vietnam. They provided insights on the product and hands on training on the usage of Raloxifene. The participants in this educative workshop included department heads, key opinion leaders, Vice Directors and Directors from leading gynaecology hospitals.

Our Chairman and Managing Director awarded a Special Recognition Award by IPA

In recognition of his ongoing contributions to the growth of the Pharmaceutical Industry, Research and the Profession of Pharmacy, our Chairman and Managing Director, Mr. Pankaj R. Patel was awarded a Special Recognition Award 2010 by the Indian Pharmaceutical Association (IPA).

The glittering function was attended by the industry stalwarts, representatives from regulatory bodies, educators and healthcare professionals and representatives of national and international affiliating organisations.

Reaching out in times of crisis

Zydus Pharmaceuticals USA Inc. has been partenering with the Americares Foundation to reach out with medical supplies and aid to people in crisis around the world.

The escalating violence and political conflict in Libya has forced thousands of people out of Libya and also disrupted basic services and supply lines within the country. Thousands of internally displaced people increasingly lacked access to medical care and lifesaving medicines. In such a situation, Americares stepped up its efforts in reaching the critically needed medical aid including surgical supplies, burn and wound care, cardiovascular and diabetic medicines as well as pain relievers, antibiotics, antiseptics and anesthetics.

Americares in association with Zydus USA has also been instrumental in providing medical aid to the vulnerable communities in the Dominican Republic, including the earthquake victims in Haiti.

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Our 28th Quarterly forum strikes the right chord

In April this year, Zydans converged for the 28th Quarterly forum. The occasion was an apt one as it was held immediately after we achieved our goal of the Healthy Billion - clocking sales of over $ 1 billion by 2015 . Interestingly, it was not the customary bugle that led the proceedings, but the striking of the gong that reverberated at the meet as each team took the stage.

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The winners of Q4 for the Best All Round Performance amongst the revenue generators were Team USA with Team Liva in the 1st runner’s up position and Team Evona in the 2nd runner’s up position.

During the Quarterly meet in April, the winners of the last leg of the Zydus HB League (Q4) were declared. It was was an exciting affair as there were several contenders for the top honours. Here’s what the scorecard had to say...

Amongst the non-revenue generators Team Manufacturing emerged the winners with Team GDSO in the second place. The Chairman’s Special Award went to Team Japan.

Our Chairman and Managing Director, Mr. Pankaj R. Patel gave a special memento to all the participants, a replica of the ‘Midas Touch’, the cover story on our group in Business India.

As we take our next step beyond the billion, all participants flashed badges of the new mascot ‘Beyond the Billion’.

Winner’s Gallery : Q4

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Stepping Beyond the Billion - Onsite Strategic Business Review Meets

Starting from April 2011, a new management governance system has been introduced. Instead of the quarterly meets in which Zydans from across the group would converge, these meetings will be structured and conducted, differently. There would be annual discussions on plans which will set objectives. There will be meetings for organizational development, periodic on-site business reviews and a bi-annual strategic meetings which will look at the larger perspective of our operations.

The first round of on-site business reviews were held across the group in April and May with Teams at USA, France, Japan, Emerging Markets and India. Members of the top management are seen posing with the teams in USA and Brazil during the tour.

Cintodac - one of the leaders in the gastrointestinal segment

The lead brands of Corza, Cintodac, a novel combination of Pantodac 40 (the No.1 original PPI brand in India) and Cintapro-OD launched last year have been growing at a rapid pace.

From a sales of Rs. 80 lacs in the first month of launch in May 2010, Cintodac is expected to clock sales of Rs. 6 crores in the first year of its launch. Riding on an overwhelming response, Cintodac is rated as one of the best new launches for our group in the gastrointestinal segment.

Our India operations – about Centurions, Brand Power, Top Scorers and New Initiatives

Aten scores a century

The Healthy Billion year ended on a high note for team Aten as the brand’s sales crossed the Rs. 100 crore mark during the year. With this Aten becomes the first brand of our group to achieve this milestone. From a turnover of Rs. 38 crores in 2002 Aten has grown to become a centurion brand and is currently the leader in the anti-hypertensive segment.

Liva riding on the wave of performance

[Ketoconazole 2% + ZPTO 1%]

Stays Longer, Works Better

For team Liva the theme for 2010 – 11 was the ‘Wave’ which was the driving force for the team’s excellent performance during the year. Liva has been on target for more than 8 consecutive quarters. Liva currently ranks amonst the top 10 derma companies in India. With sales crossing 2.5 lac units, Liva’s lead brand Skinlite is currently the leader in the depigmentation segment. (IMS MAT Feb 2011)

Consolidating its position in the derma market, team Liva recently launched the Danclear gel, an anti-dandruff gel. Strengthening its position with the expansion of its exisiting product portfolio and the launch of new products in newer segments, Team Liva is well on its way to rank amongst the top 5 derma companies in India.