SPT — Investor Presentation 2016

May 10, 2016

TWSE 1789

ScinoPharm Management Presentation

2016/05/11

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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. Forwardlooking 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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Confidential

Table of Content

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• Overview of ScinoPharm

• ScinoPharm’s Strategies and Opportunities

• Operating Results & Outlook

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Overview of ScinoPharm

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Background

• Established in 1997 in Taiwan and listed on TWSE in 2011

• Major shareholders include Uni-President Group, National Development Fund, & Taiwan Sugar

• Facility & organization built in Taiwan by experienced Syntex team, received multiple regulatory inspections from US FDA, Australia, EU, Japan, etc.

• Specializes in high potent/cytotoxic APIs & moves to injectable formulations

• Expanding in China with a marketing base in Shanghai & new GMP plant in Changshu, just inspected by US FDA with zero 483

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World Class API Facilities

Taiwan

China

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

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

• 6 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

• Global Market

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

• US FDA approved cGMP facility for intermediates & high potency API

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

• Global market including China

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Confidential

Business Overview

• Risk & return balanced model to offer APIs and sterile filling capability for both generic and new drugs

• 80+ generic APIs developed with 27 APIs launched; 56 US DMFs filed (738 DMFs WW), 29 US DMFs in oncology APIs

• 100+ NCE CRAM projects, with 5 launched and 5 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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Confidential

2015 Sales Distribution

By Indication

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By Business
By Region
Generic
77%
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Confidential

Strong Generics Product Portfolio

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45 42
40
28
35
30
25
20
unlaunched
15
3 launched
9
10 7
1414 3 4 5
3 3
5 6 2 2 2 2 2
14 3
6 2 3
1 [2] 1 1 2 1 3 2 2 2
0 2
1 2 3 2 2
2
2 2 2 2
1 1
2
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Confidential

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
Phase III 2017 Ovarian Cancer CN Phase III 2017 Parkinson’s Disease US	Phase III	2017	Ovarian Cancer	CN
	Phase III	2017	Parkinson’s Disease	US

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ScinoPharm’s Strategies and Opportunities

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Confidential

Long Term Strategies

core Transforming to a full-scope pharma company per our competency of R&D and cGMP manufacturing in hightechnical 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 start-ups & research institutes, focusing on un-met oncology medical needs of high prevalence in Asia

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Keys to Generic Formulation Business

• Expanding formulation portfolio

• Building on-site oncology injectable facility and establishing a complete supply chain

• Sustaining B2B model, promoting our formulations via strategic alliance, especially in China and US/EU

• Acquiring critical resources via M&A

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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	2016	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	2019	1st co-developed drug in China to trigger CFDA inspection in Changshu site
		Azacitidine	MDS	China	2020	Co-developed formulation
	Lee’s Pharma	Fondaparinux	Anti-thrombotic	China	2020	1st self-developed drug in China
		Travoprost Bimatoprost	Glaucoma	China	2022	Co-developed formulations
	Nanjing King Friend	Regadenoson	Stress agent for heart scan	China	2020	1st type 3.1 co-developed new drug in China
US partner Project A non-small cell lung cancer US 2019 US NDA 505(b)2 & Paragraph IV filing US & China partners Project B imaging agent US 2019 Paragraph IV filing	US partner	Project A	non-small cell lung cancer	US	2019	US NDA 505(b)2 & Paragraph IV filing
	US & China partners	Project B	imaging agent	US	2019	Paragraph IV filing

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Confidential

ScinoPharm - Oncology API Leader

Stand-Alone API Company

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ScinoPharm 29 26
Shilpa 12 9 2
Polymed 10 1 3
# Oncology DMF Overlap with SPT
MacChem Products 7 5 2
# Non-overlapping Oncology DMF
Laurus Labs 7 6 10 # Other DMFs
Sichuan Xieli 6 8 13
Chemwerth 3 5 30
Apicore 5 5 22
0 10 20 30 40 50 60
Big Generic Pharmaceutical Company
ScinoPharm 29 26
Teva 16 23 253
Dr. Reddy's 17 12 192
Cipla 10 16 124
Sun 16 11 167
Hisun 11 21 48 # Oncology DMF Overlap with SPT
# Non-overlapping Oncology DMF
Qilu 7 2 8
# Other DMFs
Hengrui 33 9
Source: US FDA 2016 Q1
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DMF database 0 50 100 150 200 250 300
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Operating Results & Outlook

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Historical Performance

Unit: In NT$ million

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5,088
4,572
5,000
4,098
3,887 3,953 3,955
3,791
4,000
3,145
2,494
3,000
2,000 1,463
613 1,273 484
1,000 872 1,170
1,041 1,040
143 961
635
484
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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Recent Financial

*** In NT$**

Year 2013 2014 2015	Year 2013 2014 2015	Year 2013 2014 2015	Year 2013 2014 2015	Year 2013 2014 2015	Year 2013 2014 2015
	Year	2013	2014	2015
	Total assets*	11,484 M	11,372 M	12,222 M
	Shareholders’ equity*	9,643 M	9,380 M	9,857 M
	Sales*	5,088 M	4,098 M	3,955 M
	Net profit after tax*	1,273 M	484 M	635 M
	Earnings per share	1.88	0.69	0.87
	Cash dividends (NT$/share)	1.2	0.2	0.3
	Stock dividends (NT$/share)	0.4	0.4	0.4
	Pay-out ratio	85%	87%	80%

Note : All of the above figures represent consolidated information

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Quarterly P&L - Consolidated

In NT$ million, except for EPS 1Q 2016 (Reviewed) 1Q 2015 (Reviewed) YoY	In NT$ million, except for EPS 1Q 2016 (Reviewed) 1Q 2015 (Reviewed) YoY	In NT$ million, except for EPS 1Q 2016 (Reviewed) 1Q 2015 (Reviewed) YoY	In NT$ million, except for EPS 1Q 2016 (Reviewed) 1Q 2015 (Reviewed) YoY	In NT$ million, except for EPS 1Q 2016 (Reviewed) 1Q 2015 (Reviewed) YoY	In NT$ million, except for EPS 1Q 2016 (Reviewed) 1Q 2015 (Reviewed) YoY
	In NT$ million, except for EPS	1Q 2016 (Reviewed)	1Q 2015 (Reviewed)	YoY
	Net Sales	1,022	979	4%
	Gross Profit	431	344	25%
	Gross margin	42%	35%
	Operating Expenses	(236)	(203)	16%
	Operating Income	195	141	39%
	Operating margin	19%	15%
	Other Rev.(Exp.)	(4)	(7)	-35%
	Net Income before Tax	191	134	42%
	Nt Inm ftr T	172	113	52%
e coe ae ax Net margin after tax 17% 12% EPS (after tax) 0.24 0.15 60%	e coe ae ax
	Net margin after tax	17%	12%
	EPS (after tax)	0.24	0.15	60%

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Balance Sheet- Consolidated

In NT$ million 2016/3/31 (Reviewed) 2015/3/31 (Reviewed)	In NT$ million 2016/3/31 (Reviewed) 2015/3/31 (Reviewed)	In NT$ million 2016/3/31 (Reviewed) 2015/3/31 (Reviewed)	In NT$ million 2016/3/31 (Reviewed) 2015/3/31 (Reviewed)	In NT$ million 2016/3/31 (Reviewed) 2015/3/31 (Reviewed)	In NT$ million 2016/3/31 (Reviewed) 2015/3/31 (Reviewed)	In NT$ million 2016/3/31 (Reviewed) 2015/3/31 (Reviewed)
	In NT$ million	2016/3/31 (Reviewed)		2015/3/31 (Reviewed)
	Cash and Cash Equivalents	2,560	21%	2,008	17%
	Accounts Receivable	645	5%	653	6%
	Inventories	2,167	17%	2,402	21%
	Long-Term Investments	364	3%	244	2%
	Property, plant & equipment	5,361	43%	5,109	44%
	Other assets	1,394	11%	1,155	10%
	Total Assets	12,491	100%	11,571	100%
20 Current Liabilities 2,374 19% 2,004 17% L-T Liabilities and Others 90 1% 91 1% Stockholders’ Equities 10,027 80% 9,476 82%	Current Liabilities	2,374	19%	2,004	17%
	L-T Liabilities and Others	90	1%	91	1%
	Stockholders’ Equities	10,027	80%	9,476	82%

Cash Flows- Consolidated

In NT$ million 1Q 2016 (Reviewed) 1Q 2015 (Reviewed)	In NT$ million 1Q 2016 (Reviewed) 1Q 2015 (Reviewed)	In NT$ million 1Q 2016 (Reviewed) 1Q 2015 (Reviewed)	In NT$ million 1Q 2016 (Reviewed) 1Q 2015 (Reviewed)	In NT$ million 1Q 2016 (Reviewed) 1Q 2015 (Reviewed)
	In NT$ million	1Q 2016 (Reviewed)	1Q 2015 (Reviewed)
	Cash and cash equivalents at beginning of period	2,336	1,928
	Cash flows from operating activities	663	241
	CAPEX	(263)	(269)
	Short-term borrowings	(16)	86
	Others	(160)	22
14 21 Cash and cash equivalents at end of period 2,560 2,008	Cash and cash equivalents at end of period	2,560	2,008

2016 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 Source: : IMS Data (2014Q4-2015Q3) Launched			.
	Tamsulosin HCl	USA	Benign Prostatic Hyperplasia (BPH)	Boehringer Ingelheim	US$410.0M	US$1,818.4M

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Pipeline Outlook

• 4-6 new launches � 5-6 new launches

• 5-6 new launches

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� 1 [st] co-developed US � 1 [st ] home-made drug US � 1 [st ] home-made drug launched in US
ANDA launched ANDA filing � 3 drug products launched in China
2016 2017 2018 2019 2020
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• 3-5 new launches � 6-8 new launches

• 1[st] self-developed US ANDA launched

• 1 drug product launched in China

• Chinese CFDA inspection at SPC

• US FDA inspection at INJ

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Confidential

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Brand Quality with Asian Advantages

www.scinopharm.com

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