Dear Shareholders
 
 Over the last four years, your company s research and development team
 has developed technology platforms in generic biologicals, monoclonal
 antibodies and speciality injectables like oncology. As a result, your
 company has one of the most robust product pipelines in the
 speciality/generic biologies space.
 
 Your company has licensed its generic G - CSF to Ranbaxy for clinical
 development and launch in the EU and later in the US market. Your
 company is one of the very few companies that has a fully validated
 product and a EU/US PDA approvable biologies manufacturing facilities
 in India. Your company has several other such products that will be
 taken up for clinical development with partners in the very near
 future.
 
 In speciality drugs pipeline, your company has developed seven general
 injectables for ANDA submissions in the US in collaboration with
 Ranbaxy. These seven ANDAs are to be filed in this calendar year.
 Several other ANDAs in speciality/oncology area are being taken up for
 development in the coming year.
 
 Your company has come a long way since its biologies operations started
 four years back. We have robust product pipelines with strong future
 potential, US PDA approvable manufacturing facilities and a highly
 dedicated and motivated team to take the business forward. However,
 there comes a time when the business model can be fully operationalized
 only with the help of a strategic partner. Your Board of Directors have
 chosen Ranbaxy to be the strategic partner, who brings strong
 competencies in pre-clinical and clinical development, global
 regulatory expertise, strong intellectual property skills, global
 marketing reach and above all, a strong financial wherewithal.
 
 Over the past two years, both the organizations shared a wonderful
 working relationship with great chemistry between the teams. The
 decision to expand our engagement is a statement of our unified goal to
 make India a strong contender in the international biopharmaceuticals
 market.
 
                                                           Best Wishes,
 
                                                Dr. Jayaram Chigurupati