Press Release

ScinoPharm Recognized in Active Pharmaceutical Ingredients Market with 2005 Entrepreneurial Company Award

Chennai, India. — July 22, 2005 — Frost & Sullivan felicitated ScinoPharm Taiwan, Ltd. with the 2005 Entrepreneurial Company Award for its array of process research and development (R&D) services and active pharmaceutical ingredients (APIs) manufacturing capabilities. The company received the award at the fourth BioBusiness Asia (BBA) conference – one of the largest annual biotech investment events in Asia Pacific – held yesterday – 21st July at Taipei, Taiwan.

This Frost & Sullivan Award is given each year to a small company that has demonstrated superior entrepreneurial ability in its industry. This award signifies the company's identification of a unique and revolutionary product solution with significant market potential. Additionally, it certifies that the company's marketing strategy is sound and poised for success.

With the Taiwanese government owning approximately 25 percent of the company, ScinoPharm is assured of long-term and substantial financial backing by the government to help it become a major global supplier of API services and products.

The sales of ScinoPharm products have almost doubled each year. The company’s revenue in 2002 was $4.97 million (NT$159 million) and in 2003, it was $8.22 million (NT$263 million). This figure more than doubled in 2004 to reach $17.84 million (NT$571 million). The shareholder equity of ScinoPharm was $152 million (NT$4.86 billion) in December 2004.

ScinoPharm’s scientists have currently developed manufacturing processes for 30 APIs, which the company will be formulate and sell in the United States and Europe. In the first quarter of 2005, it had a total of 72 global customers – most of them from Germany and North America.

Virtually, most of the leading brands and generic companies are clients of ScinoPharm. The company has plans to expand and strengthen its market presence in Taiwan by tying up with large local pharmaceutical enterprises.

“To ensure that timely data on production and research is made available, ScinoPharm has invested heavily in enterprise resource planning (ERP) systems such as systems, applications, and products in data processing (SAP) and Lab Information Systems,” says Frost & Sullivan Research Analyst Derek Leong “This helps ScinoPharm provide essential details and information to health and pharmaceutical regulatory bodies in countries it exports to.”

The company implements critical IT applications after consulting with established global IT companies to ensure smooth operational flow and lower downtime risks. To increase efficiency further, it has invested in Groove, a system that aids effective communication among business associates and team members from different countries.

Being a leading market participant, ScinoPharm has tailored its business strategies to suit different market segments.

“In generics, ScinoPharm’s business model is based on the original equipment manufacturer (OEM) concept, wherein it develops and manufactures APIs for pharmaceutical companies,” notes Leong. “The company focuses on developing and materializing new drug inventions such as active compounds and new chemical entities (NCEs).”

The company is growing consistently and will thrive further with the upcoming biotech boom. It has developed the capabilities to produce several biopharmaceuticals – whose patents will soon expire or have already expired – in the hope that biotech products can be offered to generic formulators.

About ScinoPharm Taiwan, Ltd.
Founded in 1997, with initial on-site operations beginning in November 1999, ScinoPharm® Taiwan offers a wide array of process R&D services and API manufacturing capabilities designed to satisfy customers' exact requirements and facilitate their rapid market introductions. ScinoPharm specializes in process R&D and the production of CGMP Active Pharmaceutical Ingredients (APIs).  The facility and its operations successfully passed a US FDA audit in October of 2001.

ScinoPharm targets three market segments in the global pharmaceutical industry:
●  Custom Synthesis for early phase pharmaceutical activities
●  Generic API manufacturing
●  Brand company outsourcing services

For more information, please visit http://www.scinopharm.com

About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com.

Media Contact:

Radhika Menon Theodore
Corporate Communications – Asia Pacific
P: +91 44 52044668
F: +91 44 24314264
E: rmtheodore@frost.com