SPT — Investor Presentation 2015

Feb 3, 2015

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ScinoPharm Management Presentation

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TWSE 1789

February 3, 2015

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 material 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 Content

 Overview of ScinoPharm

 Financial & Operating Results in Q4, 2014

 Progress Made in China

 Business Updates

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Overview of ScinoPharm

- An API + ANDA Company

Active Pharmaceutical Ingredients Abbreviated New D A rug pplication

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Confidential

Business Overview

• Established in 1997 in Taiwan and listed on TWSE in 2011, current market cap around US$1.2 billion

• Specializes in high potency (steroid/cytotoxic) APIs and expands to injectable formulations

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

• 70 generic APIs developed with 27 APIs launched; 50 US DMFs filed (694 DMFs WW), 24 US DMFs in oncological APIs

 80+ NCE CRAM projects, with 5 launched and 9 in phase III for NDA filing in 2-3 years; The Qualified Asian supplier to provide APIs to global market for multiple commercial NCEs

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Strong Generics Product Portfolio

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ScinoPharm - Oncological API Leader

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Diversified CRAM Portfolio

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Stage	MFG Site	First Launch Year	Indication	Location
Commercial	SPT	2005	Eluting Stent	US
Commercial	SPT	2009/2013	Skin Infection/HAP	US/EU
Commercial	SPT	2011	Depression	US
Commercial	SPT	2012	Obesity	US
**Commercial **	SPT	2013	Seizure	US
Stage	MFG Site	Est. NDA Filing Year	Indication	Location
Phase III	SPT	2014*	Infections	US
Phase III	SPT	2016	Prostate & Ovarian Cancer	EU
Phase III	SPT	2016	Prostate Cancer	US
Phase III	SPT	2017	Seizure	US
Phase III	SPT	2017	Parkinson’s Disease	US
Phase III	SPT	2017	Opioid-Induced Constipation	US
Phase III	SPC	2016-2017	Ovarian Cancer	CN
Phase III	SPC	2016	Hypogonadism	US
Phase III	SPC	2017	Cancer	CN

*** Filed**

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Long Term Strategies

Transforming to a full-scope pharma company per our core competency of R&D and cGMP manufacturing in high-technical barrier APIs

• Vertical Integration to Generic Formulations: Developing dossiers per our difficult-to-make APIs to increase value proposition in the supply chain

• Innovative Delivery Formulations: Targeted delivery & extended release of proven APIs via 505(b)2 fast track

• Brand New Chemical Entities (New Drugs): Collaborating with academic research institutes, focusing on un-met oncological medical needs of high prevalence in Asia

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Keys to Generic Formulation Business

• Expanding formulation portfolio

• Building on-site oncological injectable facility and establishing a complete supply chain of oral products

• Promoting our formulations via strategic alliance, especially in China and US

• Acquiring critical resources via M&A

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Strategic Alliances

*** Already launched**

Partner	Product	Indications	Region	Launch Year(E)	Remarks
Genovate	Entecavir	Hepatitis B Viral	TW*/ CN	2013*/ 2019	1st co-developed formulation product launch
Sagent	Oncological Injectable	Myeloid Leukemia	US	2017	1st US ANDA filing to trigger US FDA inspection in Changshu site
Foresee	Leuprolide	Prostate cancer	US	2018	505(b)2 NDA CRAM + Equity
Coland	Bortezomib	Multiple Myeloma	CN	2018	1st co-developed drug in China to trigger CFDA inspection in Changshu
	Azacitidine	MDS	CN	2019	Co-developed formulation
Lee’s Pharma	Fondaparinux	Anti-thrombotic	CN	2019	Co-developed formulation
	Travoprost Bimatoprost	Glaucoma	CN	2020	Co-developed formulation
Nanjing King Friend	Regadenoson	Stress agent for heart scan	CN	2020	1st type 3.1 co-developed new drug in China

Pipeline Outlook

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 4-5 new launches  8-10 new launches  6-8 new launches
 US FDA inspection on SPC  1 [st] co-developed drug  1 [st] type 3.1 co-developed
product launched in China new drug launched in
China
 US FDA inspection on INJ
2015 2016 2017 2018 2019 2020
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 4-5 new launches  5-6 new launches  7-9 new launches
 1 [st ] CRAM service of
 1 [st] ANDA product
type 1.1 new drug
launched in US
launched in China
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Financial & Operating Results

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Cumulative P&L - Consolidated

In NT$ million, except for EPS	1Q~4Q,’14 (Unaudited)	1Q~4Q,’13 (Audited)	YoY
Net Sales	4,098	5,088	-19%
Gross Profit	1,600	2,543	-37%
Gross margin	39%	50%
Operating Expenses	(1,041)	(1,145)	-9%
Operating Income	559	1,398	-60%
Operating margin	14%	27%
Other Rev.(Exp.)	43	11	291%
Net Income before Tax	602	1,409	-57%
Net Income after Tax	484	1,273	-62%
Net margin after tax	12%	25%
EPS (after tax)	0.69	1.81	-62%

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Balance Sheet- Consolidated

In NT$ million	2014/12/31 (Unaudited)	2014/12/31 (Unaudited)	2013/12/31 (Audited)	2013/12/31 (Audited)
Cash and Cash Equivalents	1,928	17%	2,289	20%
Accounts Receivable	523	5%	971	8%
Inventories	2,449	22%	2,512	22%
Long-Term Investments	248	2%	258	2%
Property, plant and equipment	5,065	44%	4,214	37%
Others	1,159	10%	1,240	11%
Total Assets	11,372	100%	11,484	100%
Current Liabilities	1,918	17%	1,775	15%
L-T Liabilities and Others	74	1%	66	1%
Stockholders’ Equities	9,380	82%	9,643	84%

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Cash Flows- Consolidated

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1Q~4Q 2014 1Q~4Q 2014
In NT$ million
(Unaudited) (Audited)
Cash and cash equivalents at
2,289 3,035
beginning of period
Cash flows from operating activities 888 939
CAPEX (1,018) (1,226)
Long-term Investment 0 (107)
Short-term borrowings 588 426
Cash Dividends (811) (780)
Others (8) 2
Cash and cash equivalents at
1,928 2,289
end of period
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Sales by Business

FY2014

CRO+BD

<1%

FY2013

CRO < 1%

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CMO
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Sales by Indications

FY2014

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Others
11%
FY2013
CNS
Others
Oncology
27%
4%
62%
CNS
Oncology
39%
57%
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Sales by Region

FY2014

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Rest of
AU&NZ
Asia ROW
2%
11% <1%
India
15%
US&CAN
EU
42%
30%
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FY2013

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India
15%
AU&NZ ROW
Rest of 5% <1%
Asia
12%
India
US&CAN
12%
52%
EU
19%
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Progress Made in China

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Confidential

Golden Opportunities in China

• Government’s 12[th] five-year plan encourages pharma industry to grow at a CAGR of 20%

• Tighten GMP requirements to align with US/EU

• Motivate drug makers to improve quality by applying for US ANDAs, which need SPT’s world class APIs

• MNCs and emerging virtual-model players create huge needs in API contract manufacturing in China for compliance

• ScinoPharm timely captures oncological API needs via importing from Taiwan and local made in Changshu sites

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Portfolio Fits China’s Demands

Rank	Therapeutic indication	2012 China Market Share	# of SP’s API candidates
1	Anti-cancer	18.9%	31
2	Anti infective	15.3%	5
3	Cardiovascular	14.5%	7
4	Metabolic	14.1%	5
5	Blood & Blood-Forming	11.8%	0
6	CNS	10.9%	9

Source: Blue Book on 6 major drugs of Chinese pharmaceutical industry , 2013

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Confidential

Provide 6 of Top 10 Oncological Drugs

Rank	Drug	2012 Sales*	% of market	% of growth	SP’s Pipeline
1	Paclitaxel	1144	9.15%	19.01%	V
2	Docetaxel	1049	8.39%	7.81%	V
3	Pemetrexed	688	5.50%	44.32%	V
4	Oxaliplatin	662	5.30%	5.51%
5	Kangai	570	4.56%	31.94%
6	Capecitabine	568	4.54%	15.45%	V
7	Rituximab	535	4.28%	18.69%
8	Gemcitabine	454	3.69%	6.51%	V
9	Tegafur	446	3.57%	87.77%	V
10	Herceptin	387	3.09%	17.31%

*** Unit: RMB Million Source: Analysis Report of Anti-Cancer Drugs, 2014**

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Confidential

Key Progress for China Market

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ScinoPharm
Taiwan
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Submitted drug import license applications for 10 APIs (5 for anti-cancer, 2 for cardiovascular, 1 for Alzheimer's disease, 1 for benign prostatic hyperplasia and 1 for Hepatitis B )

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ScinoPharm
Changshu
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• Obtained drug production permits for 9 APIs (6 for anti-cancer, 1 for anti-viral and 2 for glaucoma ) • Submitted 2 drug license applications for anticancer APIs

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Strategic
Alliance
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5 formulation development and 1 new drug projects smoothly undergoing. Expected to be commercially available in 2018-2020

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Business Updates

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Injectable Plant Progress

• To be completed by Q2’15 and start registration batch production for liquid vial line by Q4’15. Expected to submit the 1[st] home-made ANDA in 2017 and pass US FDA inspection in 2018

• Target on biologics, high potent new drugs and smallvolume, complicated and high unit-priced generics

• Offer CMO services for brand drugs and self-developed drug products in the initial stage

• Flexible in capacity expansion and capable for producing liquid/lyophilized vials and prefilled syringes

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2015 Product Launch Plan

API	Region	Indications	Brand Marketer	Regional Sales	WW Sales
Azacitidine	US	MDS Oncology	Celgene	US$323MM*	US$815MM*
Benazepril	CN	Hypertension, CV	Novartis	US$65MM**	US$480MM*
Desmopressin	US	Polyuria	Ferring	US$131MM*	US$395MM*
Letrozole	JP	Breast Cancer	Novartis	US$51MM**	US$581MM*
Tamsulosin	US	Benign prostatic hyperplasia (BPH)	Boehringer Ingelheim	US$335MM*	US$1,829MM*
Source: * IMS Data	(2013Q3-2014Q2) ** In-house research

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uestions Q

&

Answers

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Brand Quality with Asian Advantages www.scinopharm.com

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