Sustainability Report 2010 Lek d.d.

11 Lek, a Sandoz Company – Company Identity Card 1.1 How we operate 2 Lek is a pharmaceutical company, an integral part of San- doz, the generic division of the Novartis Group. We develop, manufacture and market effective, safe and quality medicinal products, from standard generic drugs through to state-of-the-art biosimilars. Legal form and ownership structure Lek is a joint-stock company, 100% owned by Novartis Phar- ma AG. Registered office Registered office is in Ljubljana, whereas the production facilities are located in Ljubljana, Menge‰, Prevalje and Len- dava. All the company’s sites are in the process of EMAS certification. Lek Lek, a Sandoz company, is one of the pillars of this second- largest global generics manufacturer. We operate as a global development center for products and technologies, a global manufacturing center for active pharmaceutical ingredients and medicinal products, a competence center for the development of vertically integrated products, and a Sandoz competence center in the field of development and manufacturing of biopharmaceutical products. We also act as a supply centre for the markets of CEE, SEE and CIS, and we market and sell Sandoz products in Slovenia. For more information, please visit http://www.lek.si . Sandoz Sandoz, a division of the Novartis Group, is a global leader in the field of generic pharmaceuticals, offering a wide array of high-quality, affordable products that are no longer pro- tected by patents. Sandoz has a portfolio of approximately 1000 active pharmaceutical ingredients and sells its pro- ducts in about 130 countries. Key product groups include cardiovascular medicines, anti-infectives, treatments for central nervous system and alimentary tract disorders, on- cology and respiratory therapies, as well as medications for blood and blood forming organ disorders. Sandoz develops, produces and markets these medicines along with pharma- ceutical and biotechnological active substances. In addition to strong organic growth in recent years, Sandoz has made a series of acquisitions including Sabex (Canada), Hexal (Germany), Eon Labs (US), EBEWEPharma (Austria), and Oriel Therapeutics (US). In 2010, Sandoz employed more than 23,000 people (full-time equivalents) worldwide and achieved annual net sales of USD 8.5 billion. For more infor- mation, please visit www.sandoz.com . Novartis Novartis provides healthcare solutions that address the growing needs of patients and societies. Focused only on healthcare, Novartis offers a diversified portfolio to best meet these needs: innovative medicines, eye care, cost-saving generic pharmaceuticals, consumer health products, pre- ventive vaccines and diagnostic tools. Novartis is the only company with leading positions in these areas. In 2010, the Group’s continuing operations achieved net sales of USD 50.6 billion, while approximately USD 9.1 bil- lion (USD 8.1 billion excluding impairment and amortization charges) was invested in R&D throughout the Group. With its headquarters in Basel, Switzerland, Novartis Group companies employ approximately 119,000 associates and operate in more than 140 countries around the world. For more information, please visit www.novartis.com . Key customers and markets 3 In accordance with the Group’s strategic orientations and organizational structure, Sandoz Group companies are the key buyers of Lek products and active pharmaceutical in- gredients. In 2010, the shares in the company’s net sales held by the leading three buyers amounted to 53.3, 10.5 and 4.6%, respectively. Central and Eastern Europe with a 79% share, and Slovenia with a 9% share are Lek’s major external direct sales mar- kets for its own products and the products by other Sandoz companies. The majority of sales were once again realized by pharmaceutical products, whereas APIs and biopharma- ceuticals account for the remaining 15%. Major groups of Lek products and brands 4 We are focused on the following leading indication groups: • Anti-infectives, • Cardiovascular drugs, • Gastrointestinal drugs, • Self-medication drugs and • On individual markets, drugs from other indication areas. Lek leading brands: • Amoksiklav ® , the most globalized leading product of Sandoz Group • Tulip ® , Coupet ® ,Acipan ® , Nillar ® , Voxin ® , Candea ® , Linex ® , Fluimukan ® , Lekadol ® , Operil ® and Persen ® . 2 Disclosure GRI 2.1,GRI 2.3, GRI 2.4, GRI 2.5, GRI 2.6 3 Disclosure GRI 2.7 4 Disclosure GRI 2.2