TABLE OF CONTENTS. 1. Introduction Dementia and Alzheimer Prevalence. 2. Global Alzheimer Market and Performance. 2.1.

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3 TABLE OF CONTENTS 1. Introduction 1.1. Dementia and Alzheimer Prevalence 2. Global Alzheimer Market and Performance 2.1. Market Size 2.2. Alzheimer Drugs Demand 3. Alzheimer s Market: United States 3.1. Prevalence of the Disease 3.2. Market Size US Alzheimer Drugs Market 4. China 5. Industry Trends 5.1. Ranbaxy gets Approval for Alzheimer s drug 5.2. Wockhardt received US FDA approval for Alzheimer s drug Memantine 5.3. Opportunities Persist in the Global Market 5.4. Canada A New Destination for Alzheimer Treatment 5.5. RFID Chip Implants Planned for Alzheimer's Patients 5.6. Herbal supplement improves memory in patients at risk of Alzheimer's 5.7. Scientists Develop Blood Test to Detect Alzheimer's disease 5.8. Government Regulation 5.9. Future Outlook 6. Driving Forces 6.1. Prevalence Rate Increases with Aging Population 3

4 6.2. Urbanization is More Prone to the Risk of Dementia 6.3. Western Regions Shows higher Risk than Eastern Parts 7. Competitive Landscape 7.1. Drugs Competition 7.2. Market Players Profile Forest Laboratories Novartis Elan Corporation 4

5 LIST OF FIGURES Figure 1: Cost of Dementia and Comparison With Company s Revenues Figure 2: Global Alzheimer Market by Value ( ) Figure 3: Global Alzheimer Drugs Market Share in 2009 Figure 4: Lifetime Risks for Alzheimer s by Age and Sex Figure 5: US Alzheimer Therapeutic Market ( E) Figure 6: Medicine Market Share in China in 2010 Figure 7: Projected Number of people Aged 65 and Over in US Population with Alzheimer Disease Figure 8: Global Alzheimer therapeutic Market Forecast by Value ( E) Figure 9: Alzheimer Prevalence Rate in Aging Population LIST OF TABLES Table 1: Global Alzheimer Drugs Sales in 2009 Table 2: Alzheimer Therapeutic Drugs Market in US ( ) Table 3: Expected Bapineuzumab Sales ( E) Table 4: Alzheimer Drugs Comparison Table 5: Clinical Trials Table 6: Forest Laboratories Revenues by Business Segments Table 7: Novartis Revenue and Operating Income ( ) Table 8: Elan Revenues by Business Segments 5

6 GLOBAL ALZHEIMER MARKET AND PERFORMANCE The global Alzheimer's disease therapeutics market was valued at USD~billion in The Galantamine drug patent expired in By geography, North America is heading the market with 37.73% share of the global Alzheimer market in Figure: Global Alzheimer Market by Value ( ) USD Billion The leading markets for Alzheimer disease therapeutics were United States, Europe, and Japan accounting for a large share of the overall market. Eisai/Pfizer and Aricept demand also contributed in the growth. ALZHEIMER DRUGS DEMAND After cardiovascular disease and cancer AD is the third largest market in the world in terms of cost to treat the disease. The top 5 pharmaceutical companies in this market are Eisai, Forest Pharmaceutical, Novartis, Pfizer, and Johnson & Johnson. Figure: Global Alzheimer Drugs Market Share in 2009 Namenda Razadyne Exeion Aricept Others 6

7 In 2009, Namenda market share has reached to ~% from ~% in Aricept accounted for the royal share of the market (~%), Exelon and razadyne accounted for ~% and ~% market share in Table: Global Alzheimer Drugs Sales in 2009 Drug Name Generic Name Marketed Approved Sales 2009 Namenda Memantine HCL Forest Labs 2003 Razadyne Galantamine J&J 2001 Exelon Rivastigmine Novartis 2000 Aricept Donepezil Pfizer and Eisai 1996 Cognex Tacrine Generic

8 ALZHEIMER S MARKET: UNITED STATES United States is the largest market for Alzheimer drugs and treatment accounting for USD~ billion in Eisai/Pfizer s Aricept (donepezil) and Forest pharmaceutical s Namenda (memantine) are the market leaders in the region. In 2010 Alzheimer market reached to USD~ billion from USD~ billion in US Alzheimer market has also faced the heat of economic recession with decline in number of hospital patients or regular treatment but due to the need of the treatment it settled down with a slight change in growth rates. Figure: US Alzheimer Therapeutic Market ( E) USD Billion E US ALZHEIMER DRUGS MARKET Aricept had annual sales of USD~ billion in the US in 2010 Namenda achieved sales of USD~ billion in 2010 from USD~ million in 2009 and Razadyne ER has annual sale was USD~ million in the same year. Table: Alzheimer Therapeutic Drugs Market in US ( ) Aricept Namenda Exelon Razadyne Razadyne ER Total Others Total 8

9 CHINA China is emerging as one of the most important markets for growth for the pharmaceutical industry as the Chinese government is in the midst of expanding the access to healthcare in the country. The diagnosis and drug treatment of Alzheimer's disease in China is extremely low, especially in rural regions. Rural cases of Alzheimer's disease account for approximately 62% percent of the prevalent Alzheimer's disease population in China. Huperzine A (Chinese brands) and donepezil (Eisai's Aricept, Chinese brands) are two leading drugs dominating the treatment of Alzheimer's disease and the overall Alzheimer's disease market in China constituted around USD~ million in Figure: Medicine Market Share in China in 2010 Huperzine A and Donepezil Others 9

10 FUTURE OUTLOOK The Alzheimer s Association estimates that total U.S. payments for health and long-term care services for people with these conditions will amount to USD~ billion from all sources in Nearly 11 million U.S. family members and other unpaid caregivers provided care for people with Alzheimer s and other dementias, valued at USD~ billion. The AD market could cross USD~ billion by 2016 with the introduction of disease-modifying drugs (DMDs). AD is likely to be the primary driver of growth in the larger central nervous system market from 2005 to 2011, expected to grow with a compound annual growth rate (CAGR) of 1.21% due to expiry of some major drugs, introduction of new therapeutic treatment and incurable disease fluctuates the demand trends. Figure: Global Alzheimer therapeutic Market Forecast by Value ( E) USD Billion E 2012E 2013E 2014E 2015E 10

11 Table: Expected Bapineuzumab Sales ( E) US Alzheimer s Treatment Market (MM) 2010E 2011E 2012E 2013E 2014E 2015E US Population Yr old US Population 85+ Yr old US Alzheimer s Sufferers (MM) Percent Treated AD Patients Treated (MM) % Mild/Moderate AD Mild/Moderate Patients treated (MM) Development Status Pll/Filing Launch New patients ( 000) Total patients % of total treated patients % of Mild/Moderate patients treated It is expected that the growth of all the currently available agents will decline in future due to a combined effect of generic entry and competition from newly emerging agents. 11