Sustainability Report 2012 Lek d.d.

15 Company Profile • At the Regional BioCamp AlpeAdria, a 3-day event held for the second year running, some of the most promising students of the Alps-Adriatic region were given an insight into pharmaceutical industry trends. • The management board of the Managers Association selected Vojmir Urlep, President of the Board of Mana- gement of Lek, a Sandoz company, as Manager of the Year 2012, which enhanced Lek’s reputation as a lea- ding development center of Sandoz. • The value of Novartis’ investments in development acti- vities, modernization and expansion of production capa- cities in Slovenia over the past ten years exceeded EUR 1.3 billion. • At the Menge‰ site, we opened a state-of-the art cell and molecular biology laboratory in the Sandoz’ Bio- pharmaceuticals Center. At the Ljubljana site, the con- struction of a new control center was started, and investments were continued to increase the capacity of the key production programs. • We invested in the development, education and trai- ning of our employees. • By fulfilling the EMAS requirements, we were the first Slovenian pharmaceutical company and the sixth Slovenian company to receive EMAS registration for all the four sites. • A routine environmental management system audit in accordance with ISO 14001:2004, and a renewal audit according to OHSAS BS 18001:2007 were performed. • The Association of Chemical Industries of the Sloveni- an Chamber of Commerce and Industry awarded Lek a certificate for their Responsible Care Initiative ® - RCI, and granted the company the right to use in 2013 the RCI logo for sustainable improvement of its health, safety and environment performance, and for trans- parent sustainability reporting. The best team at the Regional BioCamp Alpe Adria 2012. 1.3.4 Highlights and milestones of Lek’s operations in 2012 The year 2012 was marked by production growth at all the Sandoz sites in Slovenia, successful development projets, a high percentage of new launches of Sandoz products produced by Lek, and new investments. Highlights of the year: • Continued strong growth of production volumes at all the Sandoz production sites in Slovenia. • All the sites successfully passed the most demanding audits carried out by the Public Agency for Medicinal Products and Medical Devices of the Republic of Slo- venia (JAZMP), the US Food and Drug Agency (FDA), and several other audits, thus proving the high level of our quality management system to ensure patient safety. Through outstanding performance, we consoli- dated our position as one of Sandoz' key entities. • We launched more than 1,300 new products across the world. This record level represented an 80% incre- ase over the year before, and 40% of all Sandoz’ new product launches. We launched a patented antichole- sterol medication, which was one of our major, highest- -complexity launches. • We developed 26 novel products for the world’s most demanding markets. At the end of 2012, more than 260 development projects were under way. This made us Sandoz’ leading development center. • As the large increase in the production volume requi- red creation of new job positions, we hired 300 new employees, mostly in the production area, in the Qua- lity unit, and in the Biopharmaceuticals unit. • At the Sandoz Biopharmaceuticals Development Center, an upgrade of the production plant for recom- binant erythropoietin resulted in record production output. This contributed considerably to continued high growth in biosimilars sales volumes, which consequen- tly consolidated Sandoz' leading position among the world's biopharmaceutical manufacturers. • In Slovenia, we maintained the leading position in non-prescription drugs, and further strengthened our position as the second-largest generics supplier. • We celebrated the 30 th anniversary of our Lendava site. In these three decades, the site has developed into an important part of Sandoz, while maintaining its role as the region's major employer. • Packaging Center Lendava. Opening a new laboratory at the Menge‰ site.