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RESEARCH AND DEVELOPMENT

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PLIVA has a long and successful R&D track record that dates back to 1936. Its - investments in R&D have grown to a decade high of USD 40 m and represent 10% - of PLIVA's healthcare turnover. This strategic goal for this continued investment - is to achieve a balanced portfolio for PLIVA's short, medium and long-term growth. - Commitment to a unique two-fold R&D strategy: discovery and development of novel - chemical entities and development of value added generics, is further supported - by PLIVA's licensing strategy.

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PLIVA has focused its research expertise in two therapeutic areas: anti-infectives - and anti-inflammatories, and through this "Smart Discovery Strategy" globally - competitive results are expected. Research activities are focussing on the early - phases of discovery and development only, while for advanced stages of development - and marketing, strategic partnerships will be established. PLIVA's vision in - research is to develop new drugs whose production will serve unmet medical needs - and will have commercial returns in line with PLIVA's growth targets. At present, - there are three potential new drugs in PLIVA's pipeline.

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In development, superior results will be achieved by the in-house development - of new molecules, the development of final pharmaceutical Rx or OTC drug forms, - and the development of Fine Chemicals processes. PLIVA's Competitive Generic - Strategy is based on decades of experience and expertise in new API development - coupled with regular and successful FDA inspections as well as PLIVA's excellence - in chemistry and the innovative improvement of existing drugs.

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Our R&D strategy binds together a top quality international research team, - a network of strategic partnerships with multinational and biotech companies - and a broad cooperation with various international universities and institutes. - These activities are further supported by an independent body that consists - of leading experts in the R&D areas of interest to PLIVA - PLIVA's International - Scientific Advisory Board.

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During the year 2000, 5 new patent applications were submitted in Croatia: - TNF-a Inhibitors, New Coumarins, and Torasemide polymorphs; 6 new patent applications - were submitted in the UK, resulting from the PLIVA-GlaxoWellcome joint macrolide - project; 8 patents from the year 2000 and the previous year were also submitted - abroad as PCTs: Macrolides and Torasemide polymorphs. As well, PLIVA researchers - and scientists continue to publish and lecture in the professional media.

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RESEARCH AND DEVELOPMENT

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PLIVA has a long and successful R&D track record that dates back to 1936. Its + investments in R&D have grown to a decade high of USD 40 m and represent 10% + of PLIVA's healthcare turnover. This strategic goal for this continued investment + is to achieve a balanced portfolio for PLIVA's short, medium and long-term growth. + Commitment to a unique two-fold R&D strategy: discovery and development of novel + chemical entities and development of value added generics, is further supported + by PLIVA's licensing strategy.

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PLIVA has focused its expertise on NCE research, and through this "Smart Discovery Strategy" globally + competitive results are expected. Research activities are focussing on the early + phases of discovery and development only (i.e. Phase I/II clinical trials), +while for advanced stages of development + and marketing, strategic partnerships will be established. PLIVA's vision in + research is to develop new drugs whose production will serve unmet medical needs + and will have commercial returns in line with PLIVA's growth targets.

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In development, superior results will be achieved by the in-house development + of new molecules, the development of final pharmaceutical Rx or OTC drug forms, + and the development of Fine Chemicals processes. PLIVA's Competitive Generic + Strategy is based on decades of experience and expertise in new API development + coupled with regular and successful FDA inspections as well as PLIVA's excellence + in chemistry and the innovative improvement of existing drugs.

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Our R&D strategy binds together a top quality international research team, + a network of strategic partnerships with multinational and biotech companies + and a broad cooperation with various international universities and institutes. + These activities are further supported by an independent body that consists + of leading experts in the R&D areas of interest to PLIVA - PLIVA's International + Scientific Advisory Board.