SPT — Interim / Quarterly Report 2017

Aug 3, 2017

Ticker: TWSE 1789

Second Quarter 2017 On-Line Investor Meeting

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August 03, 2017

Disclaimer

This material has been prepared by ScinoPharm Taiwan, Ltd. (“ScinoPharm”).

Any opinions expressed in this material are subject to change without notice as a result of using different assumptions. ScinoPharm is under no obligation to update or keep current the information contained herein.

The information contained in this presentation is ScinoPharm’s confidential information. Any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it is prohibited and may be unlawful.

No representation or warranty , express or implied, is or will be made in or in relation to, and no responsibility or liability is or will be accepted by the Company as to , the accuracy or completeness of this material and any liability therefore is hereby expressly disclaimed.

Statements made in this presentation include forward-looking statements, which include, without limitation, statements about the issues, plans and expectations of ScinoPharm. Without limiting the foregoing, statements including the words “believes”, “anticipates”, “plans”, “expects” and similar expressions are also forward-looking statements. Forward-looking statements reflect, among other things, management’s plans and objectives for future operations, current views with respect to future events and future economic performances and projections of various financial items. These forward-looking statements involve known and unknown risks , uncertainties and other factors which may cause actual results to differ materially from those implied by such forward-looking statements.

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Table of Contents

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� Overall Updates of ScinoPharm

� Financial & Operating Results in 2Q, 2017

• Business Updates

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Overall Updates of ScinoPharm

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Confidential

Business Overview

• Company specializes in high potency (steroid/cytotoxic) APIs and is expanding into sterile/aseptic injectable formulations

• Facility & organization established in Taiwan and expanding in China with a new GMP plant in Changshu & marketing base in Shanghai

• 72 generic APIs in current portfolio with 25 APIs launched; 53 US DMFs filed (762 DMFs WW), 32 US DMFs in oncology APIs. 100+ NCE CRAM projects, with 6 APIs launched and 4 in phase III for NDA filing in 1-3 years

• Fully compliant with world-class cGMPs and international regulatory requirements; Certified by US FDA, EMA, EDQM, Australian TGA, Japanese PMDA

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Recap of Performances and Major Events

• Reported the consolidated revenues for 1H17 were NT$1.773 billion, net profits after-tax were NT$ 255 million, gross margin was 45%, EPS was NT$0.33

• The performances were mainly suffered by the unfavorable sales volumes and product mix of generic products in 2Q plus strongerthan-expected appreciation of the NT dollar against the US dollar in 1Q

• CRAM business and Double A strategy started to gain momentum

• Providing CMO service for Melinta ’s newly-approved serious skin infections drug, Baxdela™

• Issued 2016 corporate responsibility report verified by an independent third party

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Financial & Operating Results 2Q, 2017

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Quarterly P&L - Consolidated

	In NT$ million, except for EPS	2Q,’17 (Reviewed)	1Q,’17 (Reviewed)	2Q,’16 (Reviewed)	QoQ	YoY
	Operating Revenue	853	919	1,015	-7%	-16%
	Gross Profit	326	470	465	-31%	-30%
	Gross margin	38%	51%	46%
	Operating Expenses	(240)	(249)	(236)	-4%	2%
	Operating Income	86	221	229	-61%	-62%
	Operating margin	10%	24%	23%
	Other Rev.(Exp.)	(7)	(29)	(29)	-76%	-76%
	Net Income before Tax	79	192	200	-59%	-61%
	Net Income after Tax	84	170	174	-51%	-52%
8 Net margin after tax 10% 18% 17% EPS (after tax) 0.11 0.22 0.23 -50% -52%	Net margin after tax	10%	18%	17%
	EPS (after tax)	0.11	0.22	0.23	-50%	-52%

Half Year P&L - Consolidated

In NT$ million, except for EPS 1H,’17 (Reviewed) 1H,’16 (Reviewed) YoY	In NT$ million, except for EPS 1H,’17 (Reviewed) 1H,’16 (Reviewed) YoY	In NT$ million, except for EPS 1H,’17 (Reviewed) 1H,’16 (Reviewed) YoY	In NT$ million, except for EPS 1H,’17 (Reviewed) 1H,’16 (Reviewed) YoY	In NT$ million, except for EPS 1H,’17 (Reviewed) 1H,’16 (Reviewed) YoY	In NT$ million, except for EPS 1H,’17 (Reviewed) 1H,’16 (Reviewed) YoY
	In NT$ million, except for EPS	1H,’17 (Reviewed)	1H,’16 (Reviewed)	YoY
	Operating Revenue	1,773	2,037	-13%
	Gross Profit	796	896	-11%
	Gross margin	45%	44%
	Operating Expenses	(488)	(471)	4%
	Operating Income	308	425	-28%
	Operating margin	17%	21%
	Other Rev.(Exp.)	(36)	(34)	6%
	Net Income before Tax	272	391	-30%
	Net Income after Tax	255	346	-26%
9 Net margin after tax 14% 17% EPS (after tax) 0.33 0.46 -28%	Net margin after tax	14%	17%
	EPS (after tax)	0.33	0.46	-28%

Balance Sheet - Consolidated

	In NT$ million	2017/6/30 (Reviewed)	2017/6/30 (Reviewed)	2016/6/30 (Reviewed)	2016/6/30 (Reviewed)
	Cash and Cash Equivalents	3,721	29%	2,964	24%
	Accounts Receivable	726	6%	678	5%
	Inventories	1,802	14%	2,062	16%
	Long-Term Investments	391	3%	364	3%
	Property, plant & equipment	5,136	40%	5,355	43%
	Other assets	1,105	8%	1,122	9%
	Total Assets	12,881	100%	12,545	100%
	Current Liabilities	1,365	11%	2,248	18%
L-T Liabilities and Others 1284 10% 339 3% Stockholders’ Equities 10,232 79% 9,958 79%	L-T Liabilities and Others	1284	10%	339	3%
	Stockholders’ Equities	10,232	79%	9,958	79%

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Cash Flows - Consolidated

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1H 2017 1H 2016
In NT$ million
(Reviewed) (Reviewed)
Cash and cash equivalents at
3,707 2,336
beginning of period
Cash flows from operating activities 353 826
Financial assets measured at cost (27) (25)
CAPEX (324) (371)
Short-term borrowings (513) (241)
Long-term borrowings 516 255
Others 9 184
Cash and cash equivalents at
3,721 2,964
end of period
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Sales by Business

2017 1H

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BD
CMO 8%
2016 1H 8%
CRO
CRO CMO BD 8%
4% 1% <1%
Generics
76%
Generics
94%
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Sales by Indications

2017 1H

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Others
2016 1H 20%
CNS
12%
Others
Oncology
CNS
12%
68%
14%
Oncology
74%
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Sales by Region

2017 1H

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CN ROW
JP
2% 11%
7%
2016 1H
India
JP 6%
AU+NZ ROW
US+CAN
6%
3% 7%
39%
India
EU
9%
35%
US+CAN
EU
52%
23%
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Business Updates

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Confidential

ScinoPharm Will Be the API Supplier for Melinta’s Baxdela™

• Taiwan facility will provide commercial manufacturing of API for Melinta’s Baxdela™, a new drug for the treatment of Acute Bacterial Skin and Skin Structure Infections (ABSSSI) approved by the US FDA

• Antibiotic resistance is a growing concern, and physicians need more tools in the fight against this threat to modern medicine

• Approximately 3 million patients hospitalized each year in the U.S. with ABSSSI often present treatment challenges owing to their underlying medical conditions, making optimal antibiotic selection difficult

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Confidential

The New and Effective Antibiotics

• Baxdela™ was given priority review by the US FDA due to its designation as a Qualified Infectious Disease Product (QIDP) , which is qualified for certain incentives including a five-year extension of any non-patent exclusivity period awarded to the drug

• Melinta is also assessing Baxdela™ in a clinical trial in patients with hospital-treated community-acquired bacterial pneumonia (CABP) and planning to initiate a clinical trial in complicated urinary tract infections (cUTI) in the near future

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Strategic Alliance Highlights

*** Already launched**

Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Virus Taiwan 2013 1st co-developed formulation product launch Oncolo Meloid 1st US ANDA filin trierin US FDA insection*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Virus Taiwan 2013 1st co-developed formulation product launch Oncolo Meloid 1st US ANDA filin trierin US FDA insection*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Virus Taiwan 2013 1st co-developed formulation product launch Oncolo Meloid 1st US ANDA filin trierin US FDA insection*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Virus Taiwan 2013 1st co-developed formulation product launch Oncolo Meloid 1st US ANDA filin trierin US FDA insection*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Virus Taiwan 2013 1st co-developed formulation product launch Oncolo Meloid 1st US ANDA filin trierin US FDA insection*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Virus Taiwan 2013 1st co-developed formulation product launch Oncolo Meloid 1st US ANDA filin trierin US FDA insection*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Virus Taiwan 2013 1st co-developed formulation product launch Oncolo Meloid 1st US ANDA filin trierin US FDA insection*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Virus Taiwan 2013 1st co-developed formulation product launch Oncolo Meloid 1st US ANDA filin trierin US FDA insection*
	Partner	Product	Indications	Region	Launch Year(E)	Remarks
	Genovate	Entecavir	Hepatitis B Virus	Taiwan	2013*	1st co-developed formulation product launch
		Oncolo	Meloid			1st US ANDA filin trierin US FDA insection
	Sagent	gy Injectable	y Leukemia	US	2017	g, ggg p in Changshu, China site
	Foresee	Leuprolide	Prostate cancer	US	2019	505(b)(2) NDA CRAM + Equity
	Coland	Bortezomib	Multiple Myeloma	China	2020	1st co-developed drug in China to trigger CFDA inspection in Changshu site
	Lee’s Pharma	Fondaparinux	Anti-thrombotic	China	2021	Co-development collaboration
		Travoprost &Bimatoprost	Glaucoma	China	2021
	Nanjing King Friend	Regadenoson	Stress agent for heart scan	China	2020	Co-developed formulation in China
	US partner	Project A	Non-small cell lung cancer	US	2017	US NDA 505(b)(2) / The estimated launch year is subject to US FDA review
	US & China partners	Project B	Imaging agent	US	2021	ANDA with Paragraph IV filing / The estimated launch year is subject to litigation results
Baxter 5 niche injectables Anti-cancer & antinauseant US/EU 2020& continuing thereafter Baxter has the right to add up to 15 additional injectable products for collaboration Indian Int’l partner Niche injectable Anti-thrombotic US/EU 2018 1st self-developed US ANDA launched. Executive right for marketing & sales 18
	Baxter	5 niche injectables	Anti-cancer & antinauseant	US/EU	2020& continuing thereafter	Baxter has the right to add up to 15 additional injectable products for collaboration
	Indian Int’l partner	Niche injectable	Anti-thrombotic	US/EU	2018	1st self-developed US ANDA launched. Executive right for marketing & sales

2017 Product Launch Plan

Type Product Region Indication Brand Marketer Regional Sales WW Sales	Type Product Region Indication Brand Marketer Regional Sales WW Sales	Type Product Region Indication Brand Marketer Regional Sales WW Sales	Type Product Region Indication Brand Marketer Regional Sales WW Sales	Type Product Region Indication Brand Marketer Regional Sales WW Sales	Type Product Region Indication Brand Marketer Regional Sales WW Sales	Type Product Region Indication Brand Marketer Regional Sales WW Sales	Type Product Region Indication Brand Marketer Regional Sales WW Sales	Type Product Region Indication Brand Marketer Regional Sales WW Sales
	Type	Product	Region	Indication	Brand Marketer	Regional Sales	WW Sales
	Generic API	Desmopressin Acetate	USA	Polyuria	Ferring	US$166M	US$405M
	Generic API	Tamsulosin HCl	USA	Benign Prostatic Hyperplasia (BPH)	Boehringer Ingelheim	US$333M	US$1706M
	New Drug API	Oncology Product	US	Non-Small Cell Lung Cancer	N/A	N/A	N/A
	New Drug API	Baxdela™	USA EU	Antibiotics	N/A	N/A	N/A
Generic Drug Oncology Injectable US Myeloid Leukemia MDS US$183M US$278M	Generic Drug	Oncology Injectable	US	Myeloid Leukemia	MDS	US$183M	US$278M

Source: IMS Data (2015Q3-2016Q2)

Launched

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uestions Q

& Answers

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Brand Quality with Asian Advantages www.scinopharm.com

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