Hale & Tempest

Distribution, OTC & CRAMS

Chesapeake

Dr. Brian W Tempest

www.briantempest.com

brian.tempest@clara.co.uk

UK

March 2014

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9. Pharma Distribution

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Global US Distributors of PharmaSource: FT March 19 2013

•Walgreens has 45% of Alliance Boots with the option to buy the rest in 2 years

•Walgreens and Boots jointly buy 23% of Amerisource Bergen

• Boots Alliance owns 12% of Nanjing which is the 5th largest wholesaler in China & 50% of Guangzhou Pharmaceuticals which is ranked 6th wholesaler

•McKesson buys 50.1% of Celesio (including Lloyds)

•What will Cardinal/Kinray and Phoenix do?

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China Leading Distributor FosunPharma/Sinopharm

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Shanghai Pharma focussed on Expanding Distribution Across China source: Jefferies March 17 2014

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Russia - Complex Distribution source IMS

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Russia - Distributorssource: IMS

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Russia - Protek already has 158 productssource: CPhI Russia 17 April 2014

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Boots AllianceNumber of Almus Suppliers

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10. Over the Counter

Consumer Medicines (OTC)

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USA - OTC Switches from POMsource: FDA 102 switches from September 1976 to October 2013

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Europe - OTC Switches from POMsource: IMS 2013 8 out of top 20 EU Brands

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EE Pharmacy Turnover OTC vs Rx

source: james Dudley Management

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11. Contract Research &

Manufacturing (CRAMS)

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Contract Manufacturing & Contract Research Organisations Source: CPA Italy

•CMO & CROs $72b (2012) to $136b (2017) growing at 13% CGR

•CMO $47b (2012) to $93b(2017) - APIs & DFs, 2/3 toll manufacture & 1/3 custom synthesis

•CRO $25b (2012) to $43b (2017) growing at 11% CGR

•2012 % market share to 2017 % market share USA 34% to 25% EU 25% to 17% India 8% to 21% China 12% to 19% ROW 21% to 18%

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Indian CRAMs Source: Religare

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India Contract Manufacturers

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Indian Pharma in CRAMS

Source: Citi Research August 2013

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CPhI 2014

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CPhI Russia 137 Companies Source: 17 April 2014

•China 67•Russia 21•India 12•Italy 7•Czech Republic 5•Poland, Germany, South Korea 4•Indonesia, Pakistan, Romania, Latvia, Slovakia, Morocco, Jordan, Malaysia, , Spain, Greece, Ukraine, France Switzerland 1

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Thank Youbrian.tempest@clara.co.uk

www.briantempest.com