Master Pharm Poland Co. Ltd

Naturally healthy innovations

MP Polska is among the fastest growing contract manufacturers on the Polish market, with prevailing share

of long-term contracts in its revenues.

Master Pharm Polska profile

Master Pharm Polska Sp. z o.o.

CEO: Mr Jacek Franasik

Established: 2002, initially as a producer of branded

dietary supplements, later focused on

contract manufacturing

Web page: www.masterpharm.pl

Location in Poland:

Headquarters

Office

Łódź

Certificates and licences

The Company has implemented ISO

13485/2005 on medical devices

Obtaining the Certificate of business

assurance for the years 2009, 2010, 2011

Award of „Business Wings” for small and

dynamic firms in 2010, 2011

Award of „Gazele Biznesu” 2011

HACCP relates to production procedures

ensuring safety of edible products

HACCP was introduced in conformity with

Codex Alimentarius and ISO 22000:2005

GHP relates to securing hygiene throughout

production process

GHP was introduced in conformity with Codex

Alimentarius and ISO 22000:2005

MP Polska offers its clients an entire value chain of a contract manufacturer while retaining flexibility in

dealing with its subcontractors.

Master Pharm Polska – value chain

Initial concept

(0,5 FTE)

Formulation

(1 FTE)

Purchasing,

production and

packaging (1 FTE)

Documentation and

logistics

(0,5 FTE)

Covers technical

specification for

production purposes

Production documents

preparation

Product structure

specification

API proportions

specification

Covers entire

production and

packaging process

Ingredients purchase

Production calibration

Production process

(partly outsourced,

partly by Grokam)

Packaging design and

production

(outsourced)

Product packaging

Covers formalities and

delivery

Documentation

preparation for the

local authorities (i.e.

product registration

documents)

Final product delivery

to the customer’s

warehouses

Covers assessment of

client’s needs and

expectations

Numerous clients

approach MP Polska with

a concept (instead of a

formula) of a dietary

supplement – initial

assessment covers

specifying end-product

form and effects

Tablets

MP Polska cooperates with many suppliers (production facilities) which allows for flexibility and cost

effectiveness.

Master Pharm Polska – structure of production by form

Production structure of MP Polska, 2010

Hard capsules

Sachettes

Jelly

Patches (medical divices)

1,326

708

407

418

561

Ths packages

Soft capsules

1,123

Other

3,397

16.7%

8.9%

14.1%

5.1%

5.3%

42.8%

7.1%

MP Polska cooperates with a diversified portfolio of world’s leading pharmaceutical producers on a written,

long-term contract basis (often on exclusivity).

Master Pharm Polska – key customers

Revenues by key customers, 2011E

Customer portfolio is well

diversified, reducing risks

of supplier pressure

Cooperation is based on

written long-term

contracts, often on an

exclusivity basis

Two new contracts have

already been signed in

2011 and one more is

under negotiations –

further diversification of

customers is expected

MP Polska has

production certificates

issued by its customers;

such certificate requires

an extensive audit of the

subcontractor and takes

over a year to acquire –

very high switching costs

PLN ths

Leading global

pharmaceutical company

Global biggest supplements

producer (e.g.Sandoz, Teva)

Subsidiary of Polish major

pharmaceutical group

Leading global

pharmaceutical company

Premium Polish

pharmaceutical company

Others (jointly)

17.4

10.5

5.9

5.0

3.8

5.1

36.5%

22.0%

12.3%

10.5%

7.9%

10.8%

Grokam was established in 2010 as Master Pharm Polska capital group member, in the production of dry

form contracts for major customers and to recapture the captive producer’s margin.

Grokam GBL - introduction

Grokam GBL Sp. z o.o.

CEO: Aleksandra Nykiel

Established: 2010, to recapture producers’ margin on dry

form dietary supplements and to strengthen

MP Polska’s position vs. its suppliers

Location in Poland:

Headquarters

Manufacturing

plant

Mielec

Certificates and licences

HACCP relates to production procedures

ensuring safety of edible products

HACCP was introduced in conformity with

Codex Alimentarius and ISO 22000:2005

Certificate with Management System HACCP

GHP relates to securing hygiene throughout

production process

GHP was introduced in conformity with Codex

Alimentarius and ISO 22000:2005

Implemenation of cGMP in process

Grokam GBL - certification

Grokam GBL – capacity and contracts stream

Target annual production capacity

(4Q’2011)

Sachet packaging machines

(3 machines)

Blister packaging machines

(6 machines)

Capsules filling machines

(3 machines)

Tablets press forming

machines

(4 machines)

Agitator

Dragee forming machines

(4 machines)

2.2 bn units

212 mln units

800 ths units

60 mln units

1.45 bn units

125 kg per batch

Maximum utilization: 3 shifts per day (7 hours), 300 days per year

Legend:

Short time-to-market according to:

elastic organization of production process allows for rapid implementation of contracts

in-house research and development base including necessary technology and instrument

background

production sites allows for the manufacturing of large spectrum of solid food forms

workshop department focused on production technologies allows to carry out such

modifications which require adjusting the parameters of the production equipment tailor-made

according to the customer’s needs

Production, primary and secondary packaging of nutritional supplements, especially as follows:

tablets (biconvex lens, oblong, oval)

powdery products

film coating of tablets

capsules (size 4,3,2,1,0,00)

packaging of solid forms includes:

packing into PVC blisters in large spectrum of formats

filling into sachets

secondary packaging

Grokam GBL – manufacturing

All of Grokam’s machine park was purchased in the recent 12 months, indicating virtually no wear out.

Grokam plant overview

Warehouses

Packaging

facilities

Production facilities

(Machine Park)

Examples of the machinery installed in Grokam GBL

Machine park pictures

Legend 1500 Encapsulating machine Sachette filling machine

Klockner blistering machine Pam-Pac blistering machine

Examples of the machinery installed in Grokam GBL

Machine park pictures

Capsules filling machines Tablets press forming machines

Blister packaging machines

Capsules filling machines Capacity

[capsules per hour]

MG2 60000

LEGEND 90000

1200 72000

Tablets press forming machines Capacity

[capsules per hour]

TR4 (x 2) 50000

ZPW31 120000

Blister packaging machines Capacity

[blisters per minute]

PAM - PAC 100

KLOCKNER 30

DPP-250 (x2) 35

DPP-88 25

Sachet packaging machines Capacity

[schets per minute]

APS PIR 60

APSS-10 60

Sachet packaging machines

CONTACT:

Master Pharm Polska Sp. z o.o.

Address: 90-752 LODZ, Żeligowskiego 3/5 POLAND

Tel. : + 48 42 7126200

E-mail: biuro@masterpharm.pl

www.masterpharm.pl