Caraco Pharmaceutical Laboratories, Ltd. is one of the fastest growing companies in the generic pharmaceutical industry. Caraco is engaged in the business of developing, manufacturing, marketing and distributing generic and private-label pharmaceuticals to the nation's largest wholesalers, distributors, warehousing and non-warehousing chain drugstores and managed care providers, throughout the U.S. These products are intended to treat a variety of disorders including but not limited to the following: hypertension, arthritis, epilepsy, diabetes, antipsychotic, depression and pain management.

Founded in 1984, Caraco is located in the Metro Detroit area and its facilities have a total foot print of approximately 180,000 sq ft. Caraco initially struggled as a start up company, however, its renaissance truly began after establishing an alliance with Sun Pharmaceutical Industries, Ltd. (“Sun”), currently the 5th largest pharmaceutical company in India. In 1997, Sun became Caraco’s majority shareholder, and subsequently, the two companies entered into a technology transfer agreement. As disclosed, under the products agreement dated November 21, 2002, Sun agreed to transfer the technology for 25 products (all have been selected), which Caraco would file with the FDA. Also, Caraco has recently entered into a definitive agreement to market Sun ANDAs that are either approved or awaiting approval at the FDA.

Between the technology transfer and marketing agreements, along with Caraco’s internal product development, there are over 60 products awaiting approval from the FDA, as of December 31, 2006, that potentially could be marketed by Caraco in the U.S. and Puerto Rico. In addition to the pipeline of products offered by Sun, Caraco has signed three definitive agreements with third party developers or formulators, which will provide for an alternate stream of products that will complement Caraco’s current portfolio.

Caraco remains extremely pro-active in regards to growing its business appropriately to fit the current competitive environment, while maintaining a focus on creating value with quality generic pharmaceuticals to seize the opportunities available to it in the US market place. With global sales of generic drugs expected to grow more than 20 percent annually to reach $80 billion by 2008, Caraco is well positioned with four diverse paths of development, which include: the Sun marketing and technology agreements, internal research and development and lastly, outsourced development. These various paths mitigate the risk of each other, potentially allowing for an ongoing stream of approvals from the FDA.

Our staff is engaged in the growth of our business and is perpetually focused on the execution of our plan. We continually review our capacity and determine action steps required to meet our future goals. We as a company, work in a team environment constantly challenging ourselves to excel.

Caraco is a publicly listed generic pharmaceutical company traded on the American Stock Exchange (AMEX) with the ticker symbol: CPD.