1

Basel, 8 October, 2009

Gert Hoogland, MD, MBA ‘85D (INSEAD) – Founder and CEO Pharmaplan Pty Ltd

SOUTH AFRICAAn Insider's perspective

22

South Africa Today The good The bad The ugly

The SA Pharma Market

Pharmaplan Pty Ltd

Agenda

33

Spectacular Beauty

44

Infrastructure

55

Tri-Nations Champions

66

Soccer World Cup 2010

77

Key market features against other major emerging markets

Description South Africa

Brazil Russia Turkey Kenya Nigeria Argentina India

Population

- Number (million) 48.8 189.34 142.4 75.2 37.5 146.2 39.4 1110.4

- Growth rate 0.50% 1.40% -0.17% 1.30% 2.70% 1.50% 1.00% 1.40%

- Median age (years) 24.2 28.3 38.3 29.0 18.6 18.9 29.7 25.1

- Below poverty line 50% 31% 16% 20% 50% 70% 23% 25%

GDP

- GDP (US$ billion) 283 1,849 2,097 854 61 296 526 2,966

- GDP per capita

(US$)

9,700 9,500 14,800 12,000 1,700 2,100 13,100 2,600

- Real growth in GDP 5.1% 5.4% 8.1% 4.6% 7.0% 6.2% 8.7% 9.0%

US exchange rate * 7.92 1.74 24.31 1.25 67.43 117.54 3.12 42.42

Inflation 6.5% 3.6% 9.0% 8.7% 9.7% 5.4% 8.8% 6.4%

Sovereign credit

rating (S&P)

BBB+ BBB- BBB+ BB- B BB- B BBB-

Source: CIA World Factbook, The Economist Intelligent Unit, Standard Bank Group Economics, Credit Suisse

* Average from 01/01/08 until 04/11/08

88

Economic indicators

11.5% 11.0% 10.5%

12.5%

14.5% 15.0%

10.5%

12.5% 12.5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

2003 2004 2005 2006 2007 2008F 2009F 2010F 2011F

3.1%

4.9% 5.0%5.4% 5.1%

3.1%

-1.5%

3.0% 3.2%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

2003 2004 2005 2006 2007 2008F 2009F 2010F 2011F

Prime lending rates Average annual CPI

Economic overview of South Africa Real GDP growth The economy has developed from being commodity based into a

relatively well-diversified service-driven economy The largest contributor to GDP is the services sector, comprising finance,

insurance, real estate and business services The South African Reserve Bank (SARB) has increased interest rates six

times since the beginning of 2007, driven by monetary policy which targets an inflation band of 3% to 6%

Economic activity is experiencing a slowdown (in midst of global markets and domestic issues) following unprecedented growth over the past several years

As result of higher monetary policy and credit-lending criteria, household demand has decreased (following a period of easy access to credit in recent times)

With a large measure of macro stability achieved, the aim of economic policy is to lower unemployment and poverty through raising the growth potential of the economy

– The Government continues to target 6% real GDP growth by 2010

– Significant infrastructure capital expenditure is planned from 2008 enabling an improvement in real GDP growth ahead of the World Cup in 2010

5.8%

1.4%

3.4%4.6%

7.1%

11.9%

7.8%6.4%

5.7%

0%

2%

4%

6%

8%

10%

12%

14%

2003 2004 2005 2006 2007 2008F 2009F 2010F 2011F

Source: Standard Bank Research Economics Macro-Economic Forecast

99

South Africa Today The good The bad The ugly

The SA Pharma Market

Pharmaplan Pty Ltd

Agenda

1010

Societal Challenges

Source: Standard Bank Research Economics Macro-Economic Forecast

Unemployment Inequity / BEE Service Delivery Skills exodus / Skills Gap Housing / sanitation / education Public versus Private Sector issues

1111

South Africa Today The good The bad The ugly

The SA Pharma Market

Pharmaplan Pty Ltd

Agenda

1212

Crime

# 1 Colombia: 0.617847 # 2 South Africa : 0.496008

= 25,000 = 68 murders/day

# 3 Jamaica: 0.324196 # 4 Venezuela: 0.316138 # 5 Russia: 0.201534   # 6 Mexico: 0.130213   # 7 Estonia: 0.107277   # 8 Latvia: 0.10393   # 9 Lithuania: 0.102863   # 10 Belarus: 0.0983495

Murders per 1,000 inhabitants

Source: Nationmaster.com

1313

Healthcare Challenges

HIV / AIDS 5,5 million MTC transmission 300,000 p.a. HIV / AIDS deaths 345,000 p.a. Tuberculosis 482,000 Tuberculosis deaths 105,000 p.a.

NHI – Public/Private partnerships

1414

South Africa Today The good The bad The ugly

The SA Pharma Market

Pharmaplan Pty Ltd

Agenda

1515

SA Pharmaceutical market…

2009 >20 bn ZAR

Private market• Ethical & Proprietary•Dispensing Dr• Private Hospitals

15 bn ZAR

10 bn ZAR

1 bn ZAR

4 bn ZAR

Public market 5 bn ZAR

Source: IMS May 2009

1616

SA Demographics

8 m lives insured (Private)

16 m lives employed, not

insured(Emerging Market –

MHC)26 m lives not employed, not insured

(Public Healthcare)

1717

Top companies

Aspen Adcock – Ingram Sanofi Aventis Novartis Pfizer

# 28 (corrected for uncaptured sales # 21)

Pharmaplan

Astra-Zeneca Johnson &

Johnson Roche Glaxo Cipla

Generic

Generic

Hybrid

Hybrid

Hybrid

R&D based

R&D based

R&D based

Hybrid

Generic

1818

South Africa Today The good The bad The ugly

The SA Pharma Market

Pharmaplan Pty Ltd

Agenda

1919

Pharmaplan Vision

To be South Africa's Premier Specialist Pharmaceutical

Company

"There are currently 12 specialist driven products in the top 30 and 17 in the top

50" Scrip '05

2020

But … RSA also needs -

Representation of Top NICHE generic suppliers in South(ern)

Africa

“It is therefore very crucial for us to ensure that access to affordable, safe, effective and

quality drugs is established”Dr. Manto Tshabalala

Msimang, Minister of Health, Keynote address, 10 September 2001

2121

Pharmaplan Hybrid Model

• Medium sized R&D based international suppliers

• Complemented by "niche" generic suppliers

“Provide new therapeutic entities by making financial headroom resulting from generic

substitution of out-of-patent products”

2222

Head Office – Midrand

2323

Distribution & Logistics

2424

Features and Benefits… Ideal partner for small to medium

sized specialized, pharmaceutical companies― Niche, boutique

Shared trading infrastructure across principals― Cost effective

Dedicated marketing and sales forces― Principal directed product positioning

Integrated pharmaceutical agency offering― Registration, Marketing, Launch,

Distribution, Regulatory, Finance Regional (SADC) agency offering

― Allows principals to concentrate on key countries

2525

Pharmaplan Coverage

Source: www.sa-venues.com

2626

Starting out in 1997 …

2727

Specialty Focus

Neurology

Radiology Dermatology

Gastro-Enterology

Oncology Psychiatry

Clinical nutrition Cardiology Pain Management

Anaesthesiology Allergology Gynaecology

2828

Today

2929

South Africa – Pharmaceutical Market Key Players

-5

0

5

10

15

20

25

30

35 32%

11%14%14%

20%

26%

-3%

4%6%

8%

The key players in the pharma market are growing at a healthy rate

Source: IMS Health-May 2009 MAT – Conversion rate pharmaplan 2007=6.5 conversion rate 2009= 7.4 $22.5 Mn to $39.2 Mn

2007-2009 CAGR of major Pharma companies

May MAT 2009 Market share of major Pharma companies

Pharm

apla

n

Cip

la-M

edpro

Astra

Zeneca

Sanofi A

ventis

Asp

en

Gla

xoSm

ithK

line N

ovartis

Roch

e

Adco

ck In

gra

m

Pfize

r

30%

4%4%

4%5% 5%

6%

7%

8%

11%

14%

Pfizer

Novartis

Sanofi Aventis

Adcock Ingram

Aspen

REST

2%

Pharmaplan

Johnson & JohnsonCipla-Medpro AstraZeneca

Roche

GlaxoSmithKline

3030

Pharmaplan sales growth = 2x market growth

100,000

200,000

300,000

400,000

500,000

600,000

2008

2007

97,285

2006

(+28%)160,207(+37%)

125,27291,302

(+40%)224,395

2009

(+34%)300,000

2010

2003

2005

2004

0201

2

(+15%)440,000

2011

(+13%)496,000

49,466

(+28%)384,000

Sales history (ZAR '000)

3131

Summary … 12 years of exceptional organic growth

(>25% CAGR in top and bottom line) In-depth knowledge of both R&D

and generic Rx markets Focused on Specialty Pharma and Hospital

Business Fastest growing and largest private pharma

company in South Africa, now entering SADC countries

Interested in attracting new niche-based Principals and value adding equity partner(s)

3232

Recommended reading

Zumanomics Raymond Parsons

Lancet series on South African Healthcarewww.lancet.com

NAPM website www.napm.co.za

3333

Thank youDr Gert Hoogland, MD, MBA (INSEAD)Executive DirectorTel: +27 (0) 11 652 0950Fax: + 27 (0) 11 652 0953Mobile: +27 (0) 82 900 0728

Pharmaplan (Pty) Ltd106 – 16th RoadMidrand 1685South Africa2000