SPT — Investor Presentation 2017

Nov 6, 2017

1789 TT

ScinoPharm Management Presentation

2017/11/29

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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. 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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Confidential

Table of Content

� Overview of ScinoPharm

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� ScinoPharm’s Strategies and Opportunities

� Operating Results & Business Updates

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Overview of ScinoPharm

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ScinoPharm at a Glance

� ScinoPharm specializes in high potency (steroid/cytotoxic) APIs provider and injectable formulation developer, serving customers worldwide

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

• 73 generic APIs in current portfolio with 25 APIs launched; 55 US DMFs filed (764 DMFs WW), 33 US DMFs in oncology APIs. 100+ NCE CRAM projects, with 6 APIs launched and 3 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, Korea KFDA, Mexico COFEPRIS and German Authority

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Specialty Pharmaceutical Company with Two Businesses

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Partner’s Third
Injectable Party’s
API Plant Plant
API +
ANDA
NCE
Generic
CRO+CMO
In-house
Injectable
Plant
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Driving Long Term Growth by Dual Profits

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Contract
Self-Developed
Services
Products
� Target difficult-to-make � Provide CRO/CMO for APIs
(peptide)API in our portfolio
� Offer integrated service from
� Tap into formulation
API to formulation for niche
business related to our API
injectables
core competencies
� Target 505(b)(2) and � Provide biologics fill & finish
Paragraph IV drug product contract manufacturing
via strategic alliances services
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World Class Facilities

Taiwan

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

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

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

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

• In-house injectable plant with vial and cartridge production lines for oncologicals and peptides

China

• 6.7 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 API

• Full scope capabilities in the development and production of APIs on small to large scales for generic & CRAM markets

• Partnerships with downstream formulation and target for global market including China

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Confidential

Strong Generics Product Portfolio

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36
40 unlaunched
launched
35
30
25 23
20
13
15
7 7
10 6
13 4
5 6 2 2 2 2
6 4 3
1 2 2 2 1
0
Note: Other (Women's Health, Gastrointestinal, Immunology and Metabolic)
9 11
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Confidential

2017 Q1-Q3 Sales Distribution

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by Region

by Business

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by Indications
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Confidential

ScinoPharm - Oncology API Leader

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Stand-Alone API Companies
ScinoPharm 32 21
Shilpa 12 11 3
Polymed 10 2 3
MacChem Products 6 5 2 # Oncology DMF Overlap with SPT
Laurus Labs 8 7 16 # Non-overlapping Oncology DMF
# Other DMFs
Sichuan Xieli 1 2 1
Chemwerth 3 5 34
Apicore 5 8 27
0 10 20 30 40 50 60
Large Generic Pharmaceutical Companies
ScinoPharm 32 21
Teva 18 28 264
Dr. Reddy's 14 13 176
Cipla 11 17 128
Sun 17 12 164
Hisun 11 19 44
# Oncology DMF Overlap with SPT
Qilu 8 3 8
# Non-overlapping Oncology DMF
Hengrui 33 11 # Other DMFs
0 50 100 150 200 250 300
11 Source: US FDA DMF Q2 2017 database
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ScinoPharm’s

Strategies and Opportunities

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Focused To Achieve Our Goals

1.Deploying the network of development, production and distribution of injectables

• Develop dossiers per our difficult-to-make APIs (complicated synthesis & analytical methods) plus specialized injection devices

• Build partnerships and to achieve critical mass workforce for in-house injectable plant facility

2.CRAM has promising development potential in the next three years

• Focus on small-molecule targeted therapies and CNS agents based on new mode of action

• − Provide integrated service from API to formulation for niche injectables

3. Active development of Emerging and Japanese market

• Target projects to utilize capacity and accelerate growth for Changshu site

• − Develop partnership with major Japanese pharmaceutical companies and international pharmaceutical groups with Japan-based operation site

4.Continue optimizing existing generic APIs

• Maintain the market share and profit of the top 5 marketed products

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Confidential

Transforming Our Business

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Transforming into a
Positioning as a
Gateway into China full-scope pharma Tightening cost control, and
process optimization with
providing Supply-Chain company by executing
enhanced management
to Multinationals
“Double A” strategy
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Keys to Generic Formulation Business

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Opportunity Strategy Tactics
� Already the leader in � Developing dossiers per our � Expanding formulation
providing oncology APIs to difficult-to-make APIs to increase portfolio
regulated markets worldwide value proposition in the supply � Establishing on-site
� Injectable CMOs are in short chain oncology injectable facility
supply � Targeted delivery & extended and providing an integrated
� Can be customer’s injectables release of proven APIs via supply chain
provider by developing 505(b)(2) fast track � Promoting our formulations
formulations using our own � Collaborating with start-ups & via strategic alliances,
oncology APIs or others’ APIs, research institutes, focusing on especially in China and
up to and including ANDA un-met oncology medical needs US/EU
filing with FDA of high prevalence in Asia
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� 2 US ANDAs

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• 16 co-development and cost/profit sharing products with various partners

Strategic Alliance Highlights

*** Already launched**

Strategic Alliance Highlights * Already launched	Strategic Alliance Highlights * Already launched	Strategic Alliance Highlights * Already launched	Strategic Alliance Highlights * Already launched	Strategic Alliance Highlights * Already launched	Strategic Alliance Highlights * Already launched	Strategic Alliance Highlights * Already launched	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 Sagent Oncology Injectable Myeloid Leukemia US 2018 1st US ANDA filing, triggering US FDA inspection in Changshu, China site Foresee Leuprolide Prostate cancer US 2019 505(b)(2) NDA CRAM + Equity*
	Partner	Product	Indications	Region	Launch Year(E)	Remarks
	Genovate	Entecavir	Hepatitis B Virus	Taiwan	2013*	1st co-developed formulation product launch
	Sagent	Oncology Injectable	Myeloid Leukemia	US	2018	1st US ANDA filing, triggering US FDA inspection 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	2022	Co-development collaboration
		Travoprost &Bimatoprost	Glaucoma	China	2022
	Nanjing King Friend	Regadenoson	Stress agent for heart scan	China	2021	Co-developed formulation in China
	US partner	Project A	Non-small cell lung	US	2018	US NDA 505(b)(2) / The estimated launch year is subject to
16 cancer 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 Fondaparinux Anti-thrombotic US/EU 2018 1st self-developed US ANDA submitted . Executive right for marketing & sales			cancer			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	Fondaparinux	Anti-thrombotic	US/EU	2018	1st self-developed US ANDA submitted . Executive right for marketing & sales

In-House Injectable Plant Progress

• Taiwan-based facility will accommodate R&D, Quality Control, washing, sterilization, manufacturing, filling, lyophilization, packaging, and storage.

• Planned kick-off registration batch production by early 2018. Expected submission of 1st in-house ANDA in late 2018 and subsequent US FDA inspection approval in 2019

• Target products with high entry barrier or unit-pricing as in peptides and oncology agents.

• Offering CMO services for both brand and proprietary drugs

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Confidential

Aseptic Fill & Finish Service

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Vial
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Confidential

Progress of Injectable Business

Product Oncology Injectable Fondaparinux Others (10 drugs) Partner Co-development with Sagent US-self development+local marketer Self development and partnership	Product Oncology Injectable Fondaparinux Others (10 drugs) Partner Co-development with Sagent US-self development+local marketer Self development and partnership	Product Oncology Injectable Fondaparinux Others (10 drugs) Partner Co-development with Sagent US-self development+local marketer Self development and partnership	Product Oncology Injectable Fondaparinux Others (10 drugs) Partner Co-development with Sagent US-self development+local marketer Self development and partnership	Product Oncology Injectable Fondaparinux Others (10 drugs) Partner Co-development with Sagent US-self development+local marketer Self development and partnership	Product Oncology Injectable Fondaparinux Others (10 drugs) Partner Co-development with Sagent US-self development+local marketer Self development and partnership
	Product	Oncology Injectable	Fondaparinux	Others (10 drugs)
	Partner	Co-development with Sagent	US-self development+local marketer	Self development and partnership
			CN-collaboration with Lee’s Pharma
	Formulation Production	Kindos Pharmaceuticals, China	CMO	CMO + In-house production
	Type	Generic	Generic	New Drug/Generic
	Indications	Myeloid Leukemia	Anti-thrombotic	Cancer, diabetes, osteoporosis, mltile sclerosis and
up antinauseant Market Size US: US$200M US:US$100M/CN:US$80M Launch Year(E) 2018 US:2018/CN:2020 After 2020				up antinauseant
	Market Size	US: US$200M	US:US$100M/CN:US$80M
	Launch Year(E)	2018	US:2018/CN:2020	After 2020

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Confidential

CRO Phase III Product Portfolio

Est. NDA Filing Year Indication Region Remarks	Est. NDA Filing Year Indication Region Remarks	Est. NDA Filing Year Indication Region Remarks	Est. NDA Filing Year Indication Region Remarks	Est. NDA Filing Year Indication Region Remarks	Est. NDA Filing Year Indication Region Remarks
	Est. NDA Filing Year	Indication	Region	Remarks
	2018	Type I,II Diabetes	**US/ EU **	Intermediate project made in Changshu site. Expected revenue of several million USD per year after launch
	2018	Advanced Hepatocellular Carcinoma, Myelofibrosis, Autoimmune disease, etc.	CN	API project made in Changshu site. CFDA granted accelerated review under its category 1.1 innovative drug. Anticipated launch in 2019 with demand in tons
11 21 21 2018 Prostate Cancer US / EU Started process validation. Anticipated launch in 2019 and revenue of several million USD per year	2018	Prostate Cancer	**US / EU **	Started process validation. Anticipated launch in 2019 and revenue of several million USD per year

Confidential

Emerging and Japan Market Development

China

• Accelerate progress to create positive cash flow

• Focus on mid- to late-phase CRO projects. Current portfolio includes agents for oncology, anti-hypertension, and diabetes

• Seek generic APIs/intermediates with large demand to increase production utilization

Japan

• Among 20 customers, 6 are top 10 drug firms. Less established players have exited the more concentrated market

• Encourage local generic customers to engage more in direct business

• Support Japanese companies and foreign pharmaceutical companies to enable and extend business outreach

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Confidential

Capturing Chinese Growth on Multiple Fronts

• MNCs and emerging virtual-model players create a sizable demand in high-quality and compliant API contract manufacturing in China

• Existing review and approval mechanisms significantly raise the entry barrier and cost structure in the Chinese drug market, requiring dedication to quality and innovation

• We have domestic presence plus world-class strength in:

• Global, first-tier customer base

• High-technical-barrier oncology APIs

• Quality and EHS/GMP compliance

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Confidential

Selected List of CRAM Projects at Changshu

Confidential Selected List of CRAM Projects at Changshu	Confidential Selected List of CRAM Projects at Changshu	Confidential Selected List of CRAM Projects at Changshu	Confidential Selected List of CRAM Projects at Changshu	Confidential Selected List of CRAM Projects at Changshu	Confidential Selected List of CRAM Projects at Changshu	Confidential 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) GMP inspection Top 5 global pharma CMO Approved African sleeping disease drug API Site transfer from Taiwan
	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 / CMO	>15 projects, including brain tumor, antibiotic, hypertension, eye drops, etc.	API	China
	China pharm company	CRO	Phase II/ III clinical trial for cancer	API	China
	China pharm company	CRO	Phase IIb for age-related macular 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
	Aslan Pharmaceuticals	CRO	Phase II clinical trial for cancer	API	China/Global
Top 5 global pharma CRO Phase III clinical trial for diabetes Intermediate 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 US-based new drug company CRO Phase I clinical trial for sickle cell disease API US 24
	Top 5 global pharma	CRO	Phase III clinical trial for diabetes	Intermediate	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
	US-based new drug company	CRO	Phase I clinical trial for sickle cell disease	API	US

Maintain Market Share of Existing APIs - 2016 Major Products account for 65% of total sales

API Product Indication 2016 MKT h # of US DMF/EDMF & h fili*	API Product Indication 2016 MKT h # of US DMF/EDMF & h fili*	API Product Indication 2016 MKT h # of US DMF/EDMF & h fili*	API Product Indication 2016 MKT h # of US DMF/EDMF & h fili*	API Product Indication 2016 MKT h # of US DMF/EDMF & h fili*	API Product Indication 2016 MKT h # of US DMF/EDMF & h fili*
	API Product	Indication	2016 MKT h*	# of US DMF/EDMF & h fili
			sare	oter ngs
	Irinotecan HCI	Antineoplastic	42%	63
	Paclitaxel	Antineoplastic	34%	57
	Gemcitabine	Antineoplastic	24%	76
	Exemestane	Antineoplastic	22%	44
	Galantamine HBr	Antischotic	17%	38
py Docetaxel Anhydrous Antineoplastic 15% 69		py
	Docetaxel Anhydrous	Antineoplastic	15%	69

*Source: IMS data from Newport

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Operating Results & Business Updates

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P&L - Consolidated

In NT$ million, except for EPS 1Q~3Q,’17 (Reviewed) 1Q~3Q,’16 (Reviewed) YoY Operating Revenue 2,621 3,028 -13% Gross Profit 1,203 1,362 -12%	In NT$ million, except for EPS 1Q~3Q,’17 (Reviewed) 1Q~3Q,’16 (Reviewed) YoY Operating Revenue 2,621 3,028 -13% Gross Profit 1,203 1,362 -12%	In NT$ million, except for EPS 1Q~3Q,’17 (Reviewed) 1Q~3Q,’16 (Reviewed) YoY Operating Revenue 2,621 3,028 -13% Gross Profit 1,203 1,362 -12%	In NT$ million, except for EPS 1Q~3Q,’17 (Reviewed) 1Q~3Q,’16 (Reviewed) YoY Operating Revenue 2,621 3,028 -13% Gross Profit 1,203 1,362 -12%	In NT$ million, except for EPS 1Q~3Q,’17 (Reviewed) 1Q~3Q,’16 (Reviewed) YoY Operating Revenue 2,621 3,028 -13% Gross Profit 1,203 1,362 -12%	In NT$ million, except for EPS 1Q~3Q,’17 (Reviewed) 1Q~3Q,’16 (Reviewed) YoY Operating Revenue 2,621 3,028 -13% Gross Profit 1,203 1,362 -12%	In NT$ million, except for EPS 1Q~3Q,’17 (Reviewed) 1Q~3Q,’16 (Reviewed) YoY Operating Revenue 2,621 3,028 -13% Gross Profit 1,203 1,362 -12%	In NT$ million, except for EPS 1Q~3Q,’17 (Reviewed) 1Q~3Q,’16 (Reviewed) YoY Operating Revenue 2,621 3,028 -13% Gross Profit 1,203 1,362 -12%	In NT$ million, except for EPS 1Q~3Q,’17 (Reviewed) 1Q~3Q,’16 (Reviewed) YoY Operating Revenue 2,621 3,028 -13% Gross Profit 1,203 1,362 -12%
	In NT$ million, except for EPS	1Q~3Q,’17 (Reviewed)		1Q~3Q,’16 (Reviewed)		YoY
	Operating Revenue	2,621		3,028		-13%
	Gross Profit	1,203		1,362		-12%
	Gross margin	46%		45%
	Operating Expenses	(744)		(704)		-6%
	Operating Income	459		658		-30%
	Operating margin	17%		22%
	Other Rev.(Exp.)	(61)		(60)		-1%
	Net Income before Tax	398		598		-33%
Net Income after Tax 362 512 -29% Net margin after tax 14% 17% EPS (after tax) 0.46 0.65
	Net Income after Tax	362		512		-29%
	Net margin after tax	14%		17%
	EPS (after tax)	0.46		0.65

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Balance Sheet- Consolidated

In NT$ million 2017/09/30 (Reviewed) 2016/09/30 (Reviewed) Cash and Cash Equivalents 3,950 31% 3,137 25% At Ribl 470 4% 614 5%	In NT$ million 2017/09/30 (Reviewed) 2016/09/30 (Reviewed) Cash and Cash Equivalents 3,950 31% 3,137 25% At Ribl 470 4% 614 5%	In NT$ million 2017/09/30 (Reviewed) 2016/09/30 (Reviewed) Cash and Cash Equivalents 3,950 31% 3,137 25% At Ribl 470 4% 614 5%	In NT$ million 2017/09/30 (Reviewed) 2016/09/30 (Reviewed) Cash and Cash Equivalents 3,950 31% 3,137 25% At Ribl 470 4% 614 5%	In NT$ million 2017/09/30 (Reviewed) 2016/09/30 (Reviewed) Cash and Cash Equivalents 3,950 31% 3,137 25% At Ribl 470 4% 614 5%	In NT$ million 2017/09/30 (Reviewed) 2016/09/30 (Reviewed) Cash and Cash Equivalents 3,950 31% 3,137 25% At Ribl 470 4% 614 5%	In NT$ million 2017/09/30 (Reviewed) 2016/09/30 (Reviewed) Cash and Cash Equivalents 3,950 31% 3,137 25% At Ribl 470 4% 614 5%
	In NT$ million	2017/09/30 (Reviewed)		2016/09/30 (Reviewed)
	Cash and Cash Equivalents	3,950	31%	3,137	25%
	At Ribl	470	4%	614	5%
	ccouns ecevae
	Inventories	1,830	14%	2,018	16%
	Long-Term Investments	391	3%	364	3%
	Property, plant and equipment	5,122	40%	5,248	42%
	Other Current/Non-Current Assets	1,107	8%	1,128	9%
	Total Assets	12,870	100%	12,509	100%
Current Liabilities 1,219 10% 1,534 12% L-T Liabilities and Others 1,300 10% 880 7% Stockholders’ Equities 10,351 80% 10,095 81%	Current Liabilities	1,219	10%	1,534	12%
	L-T Liabilities and Others	1,300	10%	880	7%
	Stockholders’ Equities	10,351	80%	10,095	81%

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Cash Flows- Consolidated

In NT$ million 1Q~3Q 2017 (Reviewed) 1Q~3Q 2016 (Reviewed) Cash and cash equivalents at beginning of period 3,707 2,336	In NT$ million 1Q~3Q 2017 (Reviewed) 1Q~3Q 2016 (Reviewed) Cash and cash equivalents at beginning of period 3,707 2,336	In NT$ million 1Q~3Q 2017 (Reviewed) 1Q~3Q 2016 (Reviewed) Cash and cash equivalents at beginning of period 3,707 2,336	In NT$ million 1Q~3Q 2017 (Reviewed) 1Q~3Q 2016 (Reviewed) Cash and cash equivalents at beginning of period 3,707 2,336	In NT$ million 1Q~3Q 2017 (Reviewed) 1Q~3Q 2016 (Reviewed) Cash and cash equivalents at beginning of period 3,707 2,336	In NT$ million 1Q~3Q 2017 (Reviewed) 1Q~3Q 2016 (Reviewed) Cash and cash equivalents at beginning of period 3,707 2,336	In NT$ million 1Q~3Q 2017 (Reviewed) 1Q~3Q 2016 (Reviewed) Cash and cash equivalents at beginning of period 3,707 2,336
	In NT$ million	1Q~3Q 2017 (Reviewed)		1Q~3Q 2016 (Reviewed)
	Cash and cash equivalents at beginning of period	3,707		2,336
	Cash flows from operating activities	789		1,130
	CAPEX	(383)		(420)
	Short-term borrowings	(405)		(747)
	Long-term borrowings	570		812
	Ch Diidd	228		219
as vens () () Others (100) 245 Cash and cash equivalents at end of period 3,950 3,137	as vens	()		()
	Others	(100)		245
	Cash and cash equivalents at end of period	3,950		3,137

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Historical Performance

Unit: millions of NT$

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5,088
4,572
5,000
4,098
3,145 3,887 3,953 3,955 4,031
4,000
3,145
2,621
3,000
2,000
1,041
872
1,040
1,000 961 1,170 1,273
635 659 362
484
0 484
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Q1-Q3
30
12
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Recent Financials

Year 2013 2014 2015 2016 Total assets 11,484 M 11,372 M 12,222 M 12,783 M In NT$	Year 2013 2014 2015 2016 Total assets 11,484 M 11,372 M 12,222 M 12,783 M In NT$	Year 2013 2014 2015 2016 Total assets 11,484 M 11,372 M 12,222 M 12,783 M In NT$	Year 2013 2014 2015 2016 Total assets 11,484 M 11,372 M 12,222 M 12,783 M In NT$	Year 2013 2014 2015 2016 Total assets 11,484 M 11,372 M 12,222 M 12,783 M In NT$	Year 2013 2014 2015 2016 Total assets 11,484 M 11,372 M 12,222 M 12,783 M In NT$	Year 2013 2014 2015 2016 Total assets 11,484 M 11,372 M 12,222 M 12,783 M In NT$
	Year	2013	2014	2015	2016
	Total assets	11,484 M	11,372 M	12,222 M	12,783 M
	Shareholders’ equity	9,643 M	9,380 M	9,857 M	10,228 M
	Sales	5,088 M	4,098 M	3,955 M	4,031 M
	Net profit after tax	1,273 M	484 M	635 M	659 M
	Earnings per share	1.88	0.69	0.87	0.87
	Cash dividends	1.2	0.2	0.3	0.3
	Stock dividends	0.4	0.4	0.4	0.4
Pay-out ratio 85% 87% 80% 80%
	Pay-out ratio	85%	87%	80%	80%

Note : All of the above figures represent consolidated information

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Injectable Products Allied with Baxter

• ScinoPharm and Baxter Healthcare establish worldwide partnerships to codevelop and commercialize five niche generic injectable products at the initial stage

• ScinoPharm develops all APIs and injectable formulations. Baxter leads regulatory submissions in the US/EU and eventually market & sell the injectable products via its extensive presence in the hospital channel

• Both parties work on a cost-and-profit-sharing collaboration model

• Baxter has the right to add up to 15 additional injectable products for collaboration with ScinoPharm

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Collaboration Framework

• Initial product portfolio including the generic injectables for breast cancer, lung cancer, multiple myeloma and antinauseant. Targeting US/EU markets first and expect to expand to other territories

• This exclusive partnership will utilize each other's strengths and expertise in order to achieve large scale of synergies in providing niche and affordable generic injectable products

• Commercial launch for the first 5 products upon FDA approval, with product launches beginning in 2020 and continuing thereafter

• Current branded sales of the initial five products included in this partnership total more than $4 billion annually

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Responsibilities by ScinoPharm and Baxter

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API Development
API Production ScinoPharm
Formulation
Development
ScinoPharm
FDF
Baxter
Manufacturing
CMO
Sales &
Baxter
Marketing
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Benefits of the Collaboration

• Aggressively expanding our “Double A” strategy for in-house developed/produced APIs and formulations. Providing an outlet for our injectable plant capacity

• A win-win solution and collaboration. ScinoPharm provides comprehensive APIs and formulation portfolio, while Baxter operates strong injectable product marketing channels throughout the US and worldwide

• Accelerate the momentum of our downstream integration strategy by establishing alliance with an world-renowned partner

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2017 Product Launch Plan

Type Product Region Indication Brand Marketer Regional Sales WW Sales Generic API Desmopressin Acetate USA Polyuria Ferring US$166M US$405M	Type Product Region Indication Brand Marketer Regional Sales WW Sales Generic API Desmopressin Acetate USA Polyuria Ferring US$166M US$405M	Type Product Region Indication Brand Marketer Regional Sales WW Sales Generic API Desmopressin Acetate USA Polyuria Ferring US$166M US$405M	Type Product Region Indication Brand Marketer Regional Sales WW Sales Generic API Desmopressin Acetate USA Polyuria Ferring US$166M US$405M	Type Product Region Indication Brand Marketer Regional Sales WW Sales Generic API Desmopressin Acetate USA Polyuria Ferring US$166M US$405M	Type Product Region Indication Brand Marketer Regional Sales WW Sales Generic API Desmopressin Acetate USA Polyuria Ferring US$166M US$405M	Type Product Region Indication Brand Marketer Regional Sales WW Sales Generic API Desmopressin Acetate USA Polyuria Ferring US$166M US$405M	Type Product Region Indication Brand Marketer Regional Sales WW Sales Generic API Desmopressin Acetate USA Polyuria Ferring US$166M US$405M	Type Product Region Indication Brand Marketer Regional Sales WW Sales Generic API Desmopressin Acetate USA Polyuria Ferring US$166M US$405M
	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	Oral Product	USA	Antibiotics	N/A	N/A	N/A
API EU Generic Drug Oncology Injectable US Myeloid Leukemia MDS US$183M US$278M	API		EU
	Generic Drug	Oncology Injectable	US	Myeloid Leukemia	MDS	US$183M	US$278M

Source: IMS Data (2015Q3-2016Q2)

Launched

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Pipeline Outlook Timeline

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� 5-6 generic API launched
� US FDA inspection at Injectable plant
2018 2019 2020
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• 3-5 generic API launched � 4-5 generic API launched

• � 1[st ] in-house drug US ANDA filed � 2 co-developed China ANDAs � 1[st] self-developed US ANDA launched � 1 co-developed US ANDA launched � 3 NDAs filed by CRAM customers � Chinese (CFDA) inspection at Changshu site

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Confidential

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Brand Quality with Asian Advantages

www.scinopharm.com 1789 TT

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