SPT — Investor Presentation 2016

Aug 5, 2016

Ticker: TWSE 1789

Second Quarter 2016 On-Line Investor Meeting

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August 5, 2016

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 Content

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� Overview of ScinoPharm

• Financial & Operating Results in Q2, 2016

� Business Updates

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

• 70 generic APIs in current portfolio with 25 APIs launched; 50 US DMFs filed (737 DMFs WW), 30 US DMFs in oncological APIs. 100+ NCE CRAM projects, with 5 APIs launched and 5 in phase III for NDA filing in 2-3 years

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

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World Class API Facilities

Taiwan

China

• 6.6 hectares of land, 330K sqft facilities with >200M[3] reactor volume

• 5 of 16 production lines equipped with high potency capabilities for cytotoxic/steroids

• Passed US FDA, EMA, Australian TGA, Japanese PMDA inspections & 300+ cGMP customer audits

• Provides comprehensive contract research & manufacturing services for Brand drug companies

• 6.5 hectares of land with > 250M[3 ] reactor volume

• 3 of 7 production lines equipped with high potency capabilities for cytotoxics

• � US FDA approved cGMP facility for intermediates & high potency APIs

• Full scope capabilities in developing and producing APIs from small to large scale for generic & CRAM markets

• Global market served including China

• Global Market served

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Strong Generics Product Portfolio

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40 36
35
30
25 23
20
unlaunched
15 11
launched
10 7
5 6
13 4
2
5 6 2 2 2
6
4 3
2 2 2
1 1
0
Note: Other (Women's Health, Gastrointestinal, Immunology and Metabolic)
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ScinoPharm - Oncology API Leader

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Stand-Alone API Companies
ScinoPharm 30 20
Shilpa 12 11 2
Polymed 10 2 3
MacChem Products 7 5 2 # Oncology DMF Overlap with SPT
# Non-overlapping Oncology DMF
Laurus Labs 7 7 11
# Other DMFs
Sichuan Xieli 6 8 13
Chemwerth 3 5 32
Apicore 5 6 23
0 10 20 30 40 50 60
Large Generic Pharmaceutical Companies
ScinoPharm 30 20
Teva 15 26 247
Dr. Reddy's 15 13 189
Cipla 11 16 128
Sun 17 11 170
Hisun 11 19 48
# Oncology DMF Overlap with SPT
Qilu 8 3 8
# Non-overlapping Oncology DMF
Hengrui 3 3 9 # Other DMFs
0 50 100 150 200 250 300
Source: US FDA DMF Q1 2016 database
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We are Transforming our Company

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synergy of our API business,
to maximize ROI
Positioning as a Transforming into a
Tightening cost control,
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Gateway into China full-scope pharma
process optimization
Supply-Chain for company by executing
and enhanced
Multinationals “Double A” strategy
management
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Keys to Generic Formulation Business

Opportunity

Strategy

Tactics

• Already the leader in providing oncological APIs to regulated markets worldwide

• Already the leader in � Developing dossiers per our � Expanding formulation providing oncological APIs difficult-to-make APIs to portfolio

• to regulated markets increase value proposition � Building on-site worldwide in the supply chain oncology injectable

• � Injectable CMOs are in � Targeted delivery & facility and establishing undersupply condition extended release of proven an integrated supply

• � Can be customer’s APIs via 505(b)2 fast track chain

• injectables provider by � Collaborating with start-ups � promoting our developing formulations & research institutes, formulations via using our own oncological focusing on un-met strategic alliances, APIs or others’ APIs, up to oncology medical needs of especially in China and and including filing for high prevalence in Asia US/EU ANDA with FDA

  • Expanding formulation portfolio

  • Building on-site oncology injectable facility and establishing an integrated supply chain

• 2 US ANDAs

• 11 co-developing and cost/profit sharing products with various partners

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Strategic Alliance Highlights

*** Already launched**

Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Viral Taiwan 2013 1st co-developed formulation product launch*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Viral Taiwan 2013 1st co-developed formulation product launch*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Viral Taiwan 2013 1st co-developed formulation product launch*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Viral Taiwan 2013 1st co-developed formulation product launch*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Viral Taiwan 2013 1st co-developed formulation product launch*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Viral Taiwan 2013 1st co-developed formulation product launch*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Viral Taiwan 2013 1st co-developed formulation product launch*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Viral Taiwan 2013 1st co-developed formulation product launch*
	Partner	Product	Indications	Region	Launch Year(E)	Remarks
	Genovate	Entecavir	Hepatitis B Viral	Taiwan	2013*	1st co-developed formulation product launch
	Sagent	Oncology Injectable	Myeloid Leukemia	US	2017	1st US ANDA filing, triggered US FDA inspection in Changshu site
	Foresee	Leuprolide	Prostate cancer	US	2018	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
		Azacitidine	MDS	China	2021	Co-developed formulation in China
	Lee’s Pharma	Fondaparinux	Anti-thrombotic	China	2021	Co-development collaboration
		Travoprost Bimatoprost	Glaucoma	China	2020
	Nanjing King Friend	Regadenoson	Stress agent for heart scan	China	2020	Co-developed formulation in China
10 US partner Project A non-small cell lung cancer US 2020 US NDA 505(b)2 with Paragraph IV filing / The estimated launch year is subject to litigation results US & China partners Project B imaging agent US 2020 ANDA with Paragraph IV filing / The estimated launch year is subject to litigation results	US partner	Project A	non-small cell lung cancer	US	2020	US NDA 505(b)2 with Paragraph IV filing / The estimated launch year is subject to litigation results
	US & China partners	Project B	imaging agent	US	2020	ANDA with Paragraph IV filing / The estimated launch year is subject to litigation results

First New Drug Collaboration Project

• ScinoPharm ’s first new drug development project collaborates with an external partner, CVie Therapeutics, from a discovery (pre-IND) perspective.

• Both parties aim to identify a new generation compound to Istaroxime, CVie’s acute heart failure treatment currently in late Phase IIb trials in Italy and China.

• The primary goal of the new generation compound is to possess oral bioavailability while maintaining Istaroxime's unique dual lusoinotropic function. ScinoPharm will provide medicinal chemistry design and synthesis, and CVie will apply their vast biological knowhow to screen and identify the new candidate.

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Collaboration For Chronic Heart Failure Therapy

• Istaroxime is a first-in-class luso-inotropic agent under development for the treatment of acute decompensated heart failure. It is an innovative medication for the improvement of both systolic and diastolic heart function.

• The successful new generation compound may be positioned for both acute and chronic heart failure, which is expected to target a larger patient population than acute heart failure alone.

• ScinoPharm aims to be the primary chemistry, manufacturing, and controls (CMC) service provider to furnish material for both clinical and commercial phases.

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Financial & Operating Results in Q2, 2016

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Quarterly P&L - Consolidated

	In NT$ million, except for EPS	2Q,’16 (Reviewed)	1Q,’16 (Reviewed)	2Q,’15 (Reviewed)	QoQ	YoY
	Operating Revenue	1,015	1,022	963	-1%	5%
	Gross Profit	465	431	365	8%	27%
	Gross margin	46%	42%	38%
	Operating Expenses	(236)	(236)	(239)	0%	-1%
	Operating Income	229	195	126	17%	82%
	Operating margin	23%	19%	13%
	Other Rev.(Exp.)	(29)	(4)	106	625%	-127%
	Net Income before Tax	200	191	232	5%	-14%
	Net Income after Tax	174	172	132	1%	32%
14 Net margin after tax 17% 17% 14% EPS (after tax) 0.24 0.24 0.18 0% 33%	Net margin after tax	17%	17%	14%
	EPS (after tax)	0.24	0.24	0.18	0%	33%

Half Year P&L - Consolidated

In NT$ million, except for EPS 1H,’16 (Reviewed) 1H,’15 (Reviewed) YoY	In NT$ million, except for EPS 1H,’16 (Reviewed) 1H,’15 (Reviewed) YoY	In NT$ million, except for EPS 1H,’16 (Reviewed) 1H,’15 (Reviewed) YoY	In NT$ million, except for EPS 1H,’16 (Reviewed) 1H,’15 (Reviewed) YoY	In NT$ million, except for EPS 1H,’16 (Reviewed) 1H,’15 (Reviewed) YoY	In NT$ million, except for EPS 1H,’16 (Reviewed) 1H,’15 (Reviewed) YoY
	In NT$ million, except for EPS	1H,’16 (Reviewed)	1H,’15 (Reviewed)	YoY
	Operating Revenue	2,037	1,942	5%
	Gross Profit	896	709	26%
	Gross margin	44%	37%
	Operating Expenses	(471)	(442)	7%
	Operating Income	425	267	59%
	Operating margin	21%	14%
	Other Rev.(Exp.)	(34)	99	-134%
	Net Income before Tax	391	366	7%
	Net Income after Tax	346	245	41%
15 Net margin after tax 17% 13% EPS (after tax) 0.47 0.34 38%	Net margin after tax	17%	13%
	EPS (after tax)	0.47	0.34	38%

Balance Sheet - Consolidated

	In NT$ million	2016/6/30 (Reviewed)	2016/6/30 (Reviewed)	2015/6/30 (Reviewed)	2015/6/30 (Reviewed)
	Cash and Cash Equivalents	2,964	24%	2,410	20%
	Accounts Receivable	678	5%	568	5%
	Inventories	2,062	16%	2,315	19%
	Long-Term Investments	364	3%	339	3%
	Property, plant & equipment	5,355	43%	5,142	43%
	Other assets	1,122	9%	1,100	10%
	Total Assets	12,545	100%	11,874	100%
	Current Liabilities	2,248	18%	2,333	19%
L-T Liabilities and Others 339 3% 91 1% Stockholders’ Equities 9,958 79% 9,450 80%	L-T Liabilities and Others	339	3%	91	1%
	Stockholders’ Equities	9,958	79%	9,450	80%

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Cash Flows - Consolidated

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1H 2016 1H 2015
In NT$ million
(Reviewed) (Reviewed)
Cash and cash equivalents at
2,336 1,928
beginning of period
Cash flows from operating activities 826 589
CAPEX (371) (345)
Short-term borrowings (241) 212
-
Long-term borrowings 255
Others 159 26
Cash and cash equivalents at
2,964 2,410
end of period
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Sales by Business

2016 1H

CRO CMO BD 4% 1% <1%

2015 1H

CMO BD CRO 2% 2% 7%

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Generics
89%
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Sales by Indications

2016 1H

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Others
CNS
12%
14%
2015 1H
Oncology
74%
CNS Others
14% 7%
Oncology
Oncology60%
79%
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Sales by Region

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2016 1H
JP
AU+NZ ROW
6%
3% 7%
India
2015 1H
9%
AU+NZ ROW
JP
US+CAN
EU
5% 7%
7%
52%
23%
India
US+CAN
19%
43%
EU
19%
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Business Updates

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Injectable Plant Progress

• Entire facility includes space for R&D, quality control, washing, sterilization, manufacturing, filling, lyophilization, packaging, and storage

• Granted building use permit at the end of 2015. To complete registration batch production by 2017. Expected to submit the 1st home-made ANDA in 2018 and pass US FDA inspection in 2019

• Target is injectables with high entry barrier/ high unit-priced generics like oncologicals and peptides. Will offer CMO services for brand drugs and self-developed drug

• 10 drugs planned with the indications of cancer, diabetes, osteoporosis, multiple sclerosis and antinauseant

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Complies with Latest CGMP Standards

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Research Lab

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Process Area

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Process Area

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Utility Area

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Aseptic Fill & Finish Service

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Vial
Product Line
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Diversified CRAM Portfolio

Stage First Launch Year Indication Location	Stage First Launch Year Indication Location	Stage First Launch Year Indication Location	Stage First Launch Year Indication Location	Stage First Launch Year Indication Location	Stage First Launch Year Indication Location
	Stage	First Launch Year	Indication	Location
	Commercial	2005	Eluting Stent	US
	Commercial	2009/2013	Skin Infection/HAP	US/EU
	Commercial	2011	Depression	US
	Commercial	2012	Obesity	US
	Commercial	2013	Seizure	US
	Stage	Est. NDA Filing Year	Indication	Location
	Phase III	2016	Infections	US / EU / Asia
	Phase III	2017	Ovarian Cancer	US / EU
	Phase III	2017	Prostate Cancer	US
11 Phase III 2017 Ovarian Cancer CN Phase III 2018 Parkinson’s Disease US 29	Phase III	2017	Ovarian Cancer	CN
	Phase III	2018	Parkinson’s Disease	US

Selected List of CRAM Projects at Changshu

Selected List of CRAM Projects at Changshu	Selected List of CRAM Projects at Changshu	Selected List of CRAM Projects at Changshu	Selected List of CRAM Projects at Changshu	Selected List of CRAM Projects at Changshu	Selected List of CRAM Projects at Changshu	Selected List of CRAM Projects at Changshu
Customer Project Type Product Indication/stage Product Type Remarks/ Market Top 10 global pharma CMO Approved antidepressant drug in US GMP Intermediate Passed Mexican authority (APIF)
	Customer	Project Type	Product Indication/stage	Product Type	Remarks/ Market
	Top 10 global pharma	CMO	Approved antidepressant drug in US	GMP Intermediate	Passed Mexican authority (APIF)
					GMP inspection
	Top 5 global pharma	CMO	Approved African sleeping disease drug	API	Site transfer from Taiwan
	Lee’s Pharma	CRO	+15 items including topical anesthetic, brain tumor, antibiotic, hypertension, eye drop, etc.	API	China
	China pharm company	CRO	Phase II/ III clinical trial for cancer	API	China
			h b f ld l
	China pharm company	CRO	Pase II or age-reate macuar degeneration	API	US/China
	Taigen Biotech	CRO	Phase II clinical trial for myocardial infarction	API	China/Taiwan
	US-based new drug company	CRO	Phase II clinical trial for prevention of HIV infection	API	US
	Alsan Pharmaceuticals	CRO	Phase II clinical trial for cancer	API	China/Global
	Top 5 global pharma	CRO	Phase II clinical trial for diabetes	Intermediate	US
30 Top 5 global pharma CRO Phase I clinical trial API NA US NASDAQ listed pharma CRO Phase III clinical trial for opioid-induced constipation Crude API US
	Top 5 global pharma	CRO	Phase I clinical trial	API	NA
	US NASDAQ listed pharma	CRO	Phase III clinical trial for opioid-induced constipation	Crude API	US

2016 1H Major Products - account for 60% of total sales

API Idii 2015 MKT # of US DMF/EDMF &	API Idii 2015 MKT # of US DMF/EDMF &	API Idii 2015 MKT # of US DMF/EDMF &	API Idii 2015 MKT # of US DMF/EDMF &	API Idii 2015 MKT # of US DMF/EDMF &	API Idii 2015 MKT # of US DMF/EDMF &
	API	Idii	2015 MKT	# of US DMF/EDMF &
		ncatons	Share	other Filings
	Irinotecan HCI	Antineoplastic	64%	62
	Docetaxel Anhydrous	Antineoplastic	33%	68
	Paclitaxel	Antineoplastic	31%	57
	Exemestane	Antineoplastic	18%	44
	Galantamine HBr	Antipsychotic	12%	38
Gemcitabine Antineoplastic 8% 76	Gemcitabine	Antineoplastic	8%	76

*Source: IMS data from Newport

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2016 API Product Launch Plan

API Region Indication Brand Marketer Regional Sales WW Sales	API Region Indication Brand Marketer Regional Sales WW Sales	API Region Indication Brand Marketer Regional Sales WW Sales	API Region Indication Brand Marketer Regional Sales WW Sales	API Region Indication Brand Marketer Regional Sales WW Sales	API Region Indication Brand Marketer Regional Sales WW Sales	API Region Indication Brand Marketer Regional Sales WW Sales	API Region Indication Brand Marketer Regional Sales WW Sales
	API	Region	Indication	Brand Marketer	Regional Sales	WW Sales
	Azacitidine	USA	Myelodysplastic syndromes (MDS)	Celgene	US$248.1M	US$751.6M
	Desmopressin Acetate	USA	Polyuria	Ferring	US$150.1M	US$395.8M
	Entecavir	USA Singapore	Hepatitis B Virus (HBV)	Bristol- Myers	US$262.5M (USA only)	US$1,576.6M
		Australia
	Flumazenil	Korea	Reversal of the sedative effects of benzodiazepines	Roche	N/A	US$84.0M
	Gemcitabine HCl	Middle East	Pancreas, Lung, Ovary, Breast Cancers	Eli Lilly	N/A	US$547.9M
. Tamsulosin HCl USA Benign Prostatic Hyperplasia (BPH) Boehringer Ingelheim US$410.0M US$1,818.4M			.
	Tamsulosin HCl	USA	Benign Prostatic Hyperplasia (BPH)	Boehringer Ingelheim	US$410.0M	US$1,818.4M

Launched Source: IMS Data (2014Q4-2015Q3) 32

Pipeline

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� 4-6 new launches � 5-6 new launches � 5-6 new launches
� 1 [st] co-developed US � 1 [st ] home-made drug US � 3 drug products launched in China
ANDA launched ANDA filing � 1st home-made drug launched in US
2016 2017 2018 2019 2020
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� 3-5 new launches � 6-8 new launches
� Chinese CFDA inspection at SPC
� 1 [st] self-developed US � US FDA inspection at INJ
ANDA launched
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uestions Q

& Answers

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Brand Quality with Asian Advantages www.scinopharm.com

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