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<p align="center"><b>RESEARCH AND DEVELOPMENT</b></p>
<p>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.</p>
<p>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.</p>
<p align="center"><img src="p/Superrnd_ljudi_4.jpg" width="300" height="198"></p>
<p>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.</p>
<p>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.</p>
<p>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. </p>
1	<p align="center"><b>RESEARCH AND DEVELOPMENT</b></p>
2	<p>PLIVA has a long and successful R&D track record that dates back to 1936. Its
3	investments in R&D have grown to a decade high of USD 40 m and represent 10%
4	of PLIVA's healthcare turnover. This strategic goal for this continued investment
5	is to achieve a balanced portfolio for PLIVA's short, medium and long-term growth.
6	Commitment to a unique two-fold R&D strategy: discovery and development of novel
7	chemical entities and development of value added generics, is further supported
8	by PLIVA's licensing strategy.</p>
9	<p>PLIVA has focused its research expertise in two therapeutic areas: anti-infectives
10	and anti-inflammatories, and through this "Smart Discovery Strategy" globally
11	competitive results are expected. Research activities are focussing on the early
12	phases of discovery and development only, while for advanced stages of development
13	and marketing, strategic partnerships will be established. PLIVA's vision in
14	research is to develop new drugs whose production will serve unmet medical needs
15	and will have commercial returns in line with PLIVA's growth targets. At present,
16	there are three potential new drugs in PLIVA's pipeline.</p>
17	<p align="center"><img src="p/Superrnd_ljudi_4.jpg" width="300" height="198"></p>
18	<p>In development, superior results will be achieved by the in-house development
19	of new molecules, the development of final pharmaceutical Rx or OTC drug forms,
20	and the development of Fine Chemicals processes. PLIVA's Competitive Generic
21	Strategy is based on decades of experience and expertise in new API development
22	coupled with regular and successful FDA inspections as well as PLIVA's excellence
23	in chemistry and the innovative improvement of existing drugs.</p>
24	<p>Our R&D strategy binds together a top quality international research team,
25	a network of strategic partnerships with multinational and biotech companies
26	and a broad cooperation with various international universities and institutes.
27	These activities are further supported by an independent body that consists
28	of leading experts in the R&D areas of interest to PLIVA - PLIVA's International
29	Scientific Advisory Board.</p>
30	<p>During the year 2000, 5 new patent applications were submitted in Croatia:
31	TNF-a Inhibitors, New Coumarins, and Torasemide polymorphs; 6 new patent applications
32	were submitted in the UK, resulting from the PLIVA-GlaxoWellcome joint macrolide
33	project; 8 patents from the year 2000 and the previous year were also submitted
34	abroad as PCTs: Macrolides and Torasemide polymorphs. As well, PLIVA researchers
35	and scientists continue to publish and lecture in the professional media. </p>