Douglas Pharmaceuticals Ltd

Graeme DouglasManaging Director

Company history

Year Key Event

1967 Trading commences

1972 Frusemide registered

1983 Penicillin plant commissioned (solid oral in ‘85)

1986 Purchase of Karitane product license

1988 Loss of 3 major agencies

1989 First Australian market product registration

1990 Henderson site opened (new plant in 1996)

1996 Sale of Karicare to Nutricia

2002 Isotretinoin first registered in Europe

2006 Sale of Australian subsidiary

2007 FDA Approval

2008 Purchase of nutraceutical business line

2010 Added softgel capacity to manufacturing capabilities

Sales Growth

0

20

40

60

80

100

120

140

1967

1970

1975

1980

1985

1990

1995

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

B

CAGR 14%

Growth In Revenue 1967 – 2011B (NZ$m’s)

                            

Product Development Process

G1

IdeasEvaluation Detailed

Scoping

Product Design

Scale-up Bio-studies Registration

& LicensingLaunch

G3G4

G5G6

G7

G2

• Company Strategy• Market Assessment• Patent Search• Feasibility• API Source

• Formulation• Analytical• Validation • Pilot Scale

• Large Scale• Validation• Stability

• Clinical• Stability

• Regulatory• Costings• Licensing• Stability

3-6 MonthsNZ$ 70K

12 - 24 MonthsNZ$0.5 to 2Mn

2-10 MonthsNZ$0.5 to 1.5Mn

6-12 MonthsNZ$0.3 to 1Mn

18-36 MonthsNZ$0.5 to 1.5Mn

TOTAL (per Project)3.5 - 7.5 years duration and NZ$ 2.0 to 6.0Mn

Continued Investment in R&D

89

104

123

139146143

7981

78

10 1012

16

21

12

0

20

40

60

80

100

120

140

160

2004 2005 2006 2007 2008 2009 2010 2011B

0

5

10

15

20

25

30

Annual Sales Annual R&D Spend

Douglas Pharmaceuticals Turnover and R&D Spend (2004 – 2011B)

NZ$M’s NZ$M’s

An

nu

al

Turn

ov

er

An

nu

al

R&

D S

pe

nd

Oratane (Isotretinoin Softgel Capsules)

• Isomer of Vitamin A acid• Highly effective treatment for Acne• Product is a challenge to develop, manufacture &

register

• Douglas developed the first generic• A huge success for Douglas: 40 customers in 26 countries• Oratane has annual sales of over NZ$ 40 million

Global Growth Accelerated Product and New Market Growth Are Key Elements of Our 2015 Growth Strategy

Key

Existing markets

New markets

Key Objectives 2010 2015

Number of Douglas Developed Products 23 45

Total Sales Revenues (Domestic and Export) $139m $250m

Thank You