Genepharm is an Australian owned and Australian managed enterprise built on a sustainable business platform of leading products, best people and cost efficient infrastructure.

Genepharm's goal is to continue to build a valuable business for all stakeholders, be they shareholders, employees, customers or business partners.

Genepharm's focus is to establish a business with a diversified health care offering that is clearly focused on target customer segments.

Genepharm has an infrastructure and diversified business model that will enable the business to expand its product offering and accelerate the achievement of growth targets.

The Company views an extended product range as a competitive differentiator that can build stronger customer loyalty and provide earnings stability for the business. Genepharm's sales channel is strongly positioned to realise incremental earnings from the development of an extended range of healthcare products that will also deliver sales growth for Australian pharmacists.

Genepharm is well positioned for the 2007 financial year with a sound sales and marketing strategy that will uniquely position the company with Australian pharmacists. The four key elements of that strategy are built around the company's core product development infrastructure and are based on a commercial relationship with pharmacy that will provide a competitive and sustainable model of value, service, customer care and equity.

The strong market outlook for generic pharmaceuticals is continuing with compounded growth of over 20% per annum expected for the next three to five years. The market for generic pharmaceuticals is expected to grow to around $1 billion in 2006 to over $2 billion by 2009, a figure which includes the impact of cost saving measures announced by the federal government. The key growth drivers are the expirations of many of the top 100 PBS drugs between now and 2008; increasing government and public support for generic pharmaceuticals; and an ageing, more drug reliant population.