SPT — Investor Presentation 2017

Oct 30, 2017

Ticker: TWSE 1789

ScinoPharm Management Presentation

==> picture [721 x 136] intentionally omitted <==

May 9, 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.

2

Table of Contents

• Overview of ScinoPharm

� Financial & Operating Results in Q1, 2017

• Business Updates

3

==> picture [721 x 136] intentionally omitted <==

Overview of ScinoPharm

==> picture [721 x 136] intentionally omitted <==

4

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 (759 DMFs WW), 32 US DMFs in oncology APIs. 100+ NCE CRAM projects, with 5 APIs launched and 5 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

5

World Class API Facilities

Taiwan

China

• 6.6 hectares of land, 330K sq.ft. facilities � 6.7 hectares of land with > 250M[3] reactor with >200M[3] reactor volume volume

• � 5 of 16 production lines equipped with high � 3 of 7 production lines equipped with high potency capabilities for cytotoxic/steroids potency capabilities for cytotoxics

• � Passed US FDA, EMA, EDQM, Australian � US FDA approved cGMP facility for TGA, Japanese PMDA inspections, & 300+ intermediates & high potency API cGMP customer audits

• Full scope capabilities in the development

• � Provides comprehensive contract research & and production of APIs on small to large manufacturing services for brand drug scales for generic & CRAM markets companies � Global market including China

• � Global Market

==> picture [332 x 176] intentionally omitted <==

==> picture [310 x 176] intentionally omitted <==

6

Strong Generics Product Portfolio

==> picture [721 x 460] intentionally omitted <==

----- Start of picture text -----

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

ScinoPharm - Oncology API Leader

==> picture [186 x 15] intentionally omitted <==

----- Start of picture text -----

Stand-Alone API Companies
----- End of picture text -----

==> picture [721 x 434] intentionally omitted <==

----- Start of picture text -----

ScinoPharm 31 21
Shilpa 12 11 3
Polymed 10 2 3
MacChem Products 6 5 2 # Oncology DMF Overlap with SPT
# Non-overlapping Oncology DMF
Laurus Labs 7 7 14
# Other DMFs
Sichuan Xieli 6 8 13
Chemwerth 3 5 33
Apicore 5 6 24
0 10 20 30 40 50 60
Large Generic Pharmaceutical Companies
ScinoPharm 31 21
Teva 17 26 249
Dr. Reddy's 14 14 187
Cipla 11 17 125
Sun 17 11 174
Hisun 11 19 48 # Oncology DMF Overlap with SPT
Qilu 8 3 8 # Non-overlapping Oncology DMF
# Other DMFs
Hengrui 3 3 10
0 50 100 150 200 250 300
Source: US FDA DMF Q3 2016 database
8
----- End of picture text -----

We are Transforming our Company

==> picture [721 x 136] intentionally omitted <==

----- Start of picture text -----

API business, to maximize ROI
Positioning as a Transforming into a Tightening cost control
----- End of picture text -----

==> picture [721 x 167] intentionally omitted <==

----- Start of picture text -----

Tapping into formulation space
related to our core competencies
in high-entry-barrier APIs
9
----- End of picture text -----

Keys to Generic Formulation Business

==> picture [721 x 435] intentionally omitted <==

----- Start of picture text -----

Opportunity Strategy Tactics
� Already the leader in � Developing dossiers per � Expanding
providing oncology APIs our difficult-to-make APIs formulation portfolio
to regulated markets to increase value � Establishing on-site
worldwide proposition in the supply oncology injectable
� Injectable CMOs are in chain facility and providing
short supply. � Targeted delivery & an integrated supply
� Can be customer’s extended release of chain
injectables provider by proven APIs via 505(b)(2) � Promoting our
developing fast track formulations via
formulations using our � Collaborating with start- strategic alliances,
own oncology APIs or ups & research institutes, especially in China
others’ APIs, up to and focusing on un-met and US/EU
including ANDA filing oncology medical needs
with FDA of high prevalence in Asia
10
----- End of picture text -----

==> picture [721 x 136] intentionally omitted <==

Financial & Operating Results in Q1,2017

11

Quarterly P&L - Consolidated

==> picture [721 x 449] intentionally omitted <==

----- Start of picture text -----

Q1, 2017 Q1, 2016
In NT$ million, except for EPS YoY
(Reviewed) (Reviewed)
Operating Revenue ＊ 919 1,022 -10%
Gross Profit 470 431 9%
Gross margin 51% 42%
Operating Expenses (249) (236) 6%
Operating Income 221 195 13%
Operating margin 24% 19%
Other Rev. (Exp.) (29) (4)
Net Income before Tax 192 191 1%
Net Income after Tax 170 172 -1%
Net margin after tax 19% 17%
EPS (after tax) 0.22 0.23
＊
Taiwan New Dollar per 1 US Dollar quarterly average:
2017Q1: 30.93, 2016Q1: 33.16
12
----- End of picture text -----

Balance Sheet- Consolidated

	In NT$ million	2017/03/31 (Reviewed)	2017/03/31 (Reviewed)	2016/03/31 (Reviewed)	2016/03/31 (Reviewed)
	Cash and Cash Equivalents	3,715	29%	2,560	21%
	Accounts Receivable	635	5%	645	5%
	Inventories	1,941	15%	2,167	17%
	Long-Term Investments	364	3%	364	3%
	Property, Plant & Equipment	5,155	40%	5,361	43%
	Other Current/Non-Current Assets	1,043	8%	1,394	11%
	Total Assets	12,853	100%	12,491	100%
	Current Liabilities	1,692	13%	2,374	19%
Long-Term & Other Liabilities 803 6% 90 1% Stockholders’ Equities 10,358 81% 10,027 80% 13	Long-Term & Other Liabilities	803	6%	90	1%
	Stockholders’ Equities	10,358	81%	10027	80%
				,

Cash Flows- Consolidated

==> picture [721 x 443] intentionally omitted <==

----- Start of picture text -----

Q1, 2017 Q1, 2016
In NT$ million
(Reviewed) (Reviewed)
Cash and cash equivalents
3,707 2,336
at beginning of period
Cash flows from operating activities 304 663
CAPEX (203) (264)
Short-term borrowings (51) (16)
-
Long-term borrowings (41)
Others (1) (159)
Cash and cash equivalents
3,715 2,560
at end of period
Free Cash flow 101 399
14
----- End of picture text -----

Sales by Business

2017 Q1

==> picture [721 x 407] intentionally omitted <==

----- Start of picture text -----

BD&
CMO other
2016 Q1
8% 6%
CRO
5%
CMO BD
CRO
1% 1%
6%
Generics
81%
Generics
92%
15
----- End of picture text -----

Sales by Indications

2017 Q1

==> picture [721 x 406] intentionally omitted <==

----- Start of picture text -----

Others
12%
2016 Q1 CNS
11%
Others
Oncology
CNS 14%
77%
11%
Oncology
75%
16
----- End of picture text -----

Sales by Region

2017 Q1

==> picture [242 x 86] intentionally omitted <==

----- Start of picture text -----

JP
CN ROW
8%
2% 5%
India
5%
----- End of picture text -----

==> picture [721 x 384] intentionally omitted <==

----- Start of picture text -----

2016 Q1
5%
CN ROW US+CAN
JP
EU
<1% 10% 44%
8%
36%
India
3%
EU
US+CAN
25%
54%
17
----- End of picture text -----

==> picture [721 x 136] intentionally omitted <==

Business Updates

==> picture [721 x 136] intentionally omitted <==

18

Confidential

Business Growth Drivers

• 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

• Active development of Chinese 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

• Deploying the network of development, production and distribution of injectable products

• Build partnerships to speed up the momentum of vertical integration

• − Achieve critical mass workforce for in-house injectable plant facility

• Continue optimizing existing generic APIs

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

19

Confidential

CRO Phase III Product Portfolio * Already Filed

Code Est. NDA Filing Year Indication Region *Regional Sales Remarks Completed process validation	Code Est. NDA Filing Year Indication Region *Regional Sales Remarks Completed process validation	Code Est. NDA Filing Year Indication Region *Regional Sales Remarks Completed process validation	Code Est. NDA Filing Year Indication Region *Regional Sales Remarks Completed process validation	Code Est. NDA Filing Year Indication Region *Regional Sales Remarks Completed process validation	Code Est. NDA Filing Year Indication Region *Regional Sales Remarks Completed process validation	Code Est. NDA Filing Year Indication Region *Regional Sales Remarks Completed process validation	Code Est. NDA Filing Year Indication Region *Regional Sales Remarks Completed process validation
	**Code **	Est. NDA Filing Year	Indication	**Region **	Regional* Sales**	Remarks
						Completed process validation
	A	2016*	Infectious Disease	US / EU / Asia	$1.4 bn	. Anticipated launch in 2017 with demand in tons. Expected revenue of several million USDperyear
	B	2018	Type I,II Diabetes	US/ EU	$2.4 bn	Intermediate project made in Changshu site. Expected revenue of several million USD per year after launch
						API project made in Changshu site CFDA
	C	2018	Advanced Hepatocellular Carcinoma, Myelofibrosis, Autoimmune disease, etc.	CN	N/A	. granted accelerated review under its category 1.1 innovative drug. Anticipated launch in 2019 with demand intons
	D	2018	Prostate Cancer	US / EU	$2.4 bn	Started process validation. Anticipated launch in 2019 and revenue of several million USD per year
						Novel mechanism with promising demand.
E 2018 Parkinson’s Disease US $1.0 bn Anticipated launch in 2019 with demand in tons. Expected revenue of several million USDperyear	E	2018	Parkinson’s Disease	US	$1.0 bn	Anticipated launch in 2019 with demand in tons. Expected revenue of several million USDperyear

*** Source: BioMedTracker, GlobalData and DataMonitor**

20

Confidential

China 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

• � Develop partnerships with downstream formulation for collaborative development and registration, realizing shared profit creation

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

• With the resources in Taiwan and Changshu, API supply is more flexible and can be incorporated to injectable drug product via integrated services

21

Confidential

Capturing Chinese Growth on Multiple Fronts

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

• The review and approval system significantly raises the cost structure & entry barrier in Chinese drug market, with dedication to quality and innovation.

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

• Global, first-tier customer base

• High-technical-barrier oncology APIs

• Quality and EHS/GMP compliance

22

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 To 10 lobal harma CMO Aroved antideressant dru in US GMP Passed Mexican authorit (APIF) GMP
	Customer	Project Type	Product Indication/stage	Product Type	Remarks/ Market
	To 10 lobal harma	CMO	Aroved antideressant dru in US	GMP	Passed Mexican authorit (APIF) GMP
	p g p		pp p g	Intermediate	y inspection
	Top 5 global pharma	CMO	Approved African sleeping disease drug	API	Site transfer from Taiwan
	Lee’s Pharma	CRO / CMO	>15 projects for brain tumors, antibiotic, hypertension, ophthalmology, etc.	API	China
	Chinapharm company	CRO	Phase II/ III clinical trial for cancer	API	China
	China pharm company	CRO	Phase IIb for age-related macular di	API	US/China
			egeneraton
	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 5globalpharma	CRO	Phase III clinical trial for diabetes	Intermediate	US
	Top 5globalpharma	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

23

Confidential

Formulation Business Progress

In-house injectable plant

• On schedule to complete equipment assembly and verification, sterility verification, organization, personnel deployment and training, and cGMP system deployment for both vial and cartridge production lines

• Planned kick-off registration batch production by 2017. Expected submission of 1st in-house ANDA in 2018 and subsequent US FDA inspection approval in 2019.

• Formulation and collaboration development

• 2 US ANDAs: Oncology product partnership with SAGENT, and ScinoPharmdeveloped Fondaparinux

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

• Niche drugs planned with the indications of cancer, diabetes, osteoporosis and multiple sclerosis. Continue to develop strategic alliances, including ongoing discussions with international major companies for exclusive rights of distribution

24

Injectable Plant

==> picture [690 x 372] intentionally omitted <==

25

Confidential

Aseptic Fill & Finish Service

==> picture [592 x 353] intentionally omitted <==

26

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 Oncology Myeloid 1st US ANDA filing, triggering US FDA inspection*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Virus Taiwan 2013 1st co-developed formulation product launch Oncology Myeloid 1st US ANDA filing, triggering US FDA inspection*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Virus Taiwan 2013 1st co-developed formulation product launch Oncology Myeloid 1st US ANDA filing, triggering US FDA inspection*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Virus Taiwan 2013 1st co-developed formulation product launch Oncology Myeloid 1st US ANDA filing, triggering US FDA inspection*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Virus Taiwan 2013 1st co-developed formulation product launch Oncology Myeloid 1st US ANDA filing, triggering US FDA inspection*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Virus Taiwan 2013 1st co-developed formulation product launch Oncology Myeloid 1st US ANDA filing, triggering US FDA inspection*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Virus Taiwan 2013 1st co-developed formulation product launch Oncology Myeloid 1st US ANDA filing, triggering US FDA inspection*	Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B Virus Taiwan 2013 1st co-developed formulation product launch Oncology Myeloid 1st US ANDA filing, triggering US FDA inspection*
	Partner	Product	Indications	Region	Launch Year(E)	Remarks
	Genovate	Entecavir	Hepatitis B Virus	Taiwan	2013*	1st co-developed formulation product launch
		Oncology	Myeloid			1st US ANDA filing, triggering US FDA inspection
	Sagent	Injectable	Leukemia	US	2017	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
		Azacitidine	MDS	China	2021	Co-developed formulation in China
	Lee’s	Fondaparinux	Anti-thrombotic	China	2021	Co-development collaboration
	Pharma	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 27						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

Confidential

Injectable Products Allied with Baxter

• ScinoPharm and Baxter Healthcare establish worldwide partnerships to co-develop 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

28

Confidential

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

29

Responsibilities by ScinoPharm and Baxter

==> picture [721 x 448] intentionally omitted <==

----- Start of picture text -----

API Development
API Production
ScinoPharm
Formulation
Development
ScinoPharm
FDF Baxter
Manufacturing
CMO
Sales &
Baxter
Marketing
30
----- End of picture text -----

==> picture [151 x 12] intentionally omitted <==

----- Start of picture text -----

FDF: Finished Dosage Form
----- End of picture text -----

Confidential

Benefits of the Collaboration

• Aggressively expanding our “Double A” strategy for inhouse 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

31

Confidential

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

	API	Indication	2016 MKT share*	# of US DMF/EDMF & other filings
	Irinotecan HCI	Antineoplastic	42%	63
	Paclitaxel	Antineoplastic	34%	57
	Gemcitabine	Antineoplastic	24%	76
	Exemestane	Antineoplastic	22%	44
	Galantamine HBr	Antipsychotic	17%	38
Docetaxel Anhydrous Antineoplastic 15% 69 *Source: IMS data from Newport 32	Docetaxel Anhydrous	Antineoplastic	15%	69
	*Source: IMS data from Newport

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	Oral Product	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)

33

Pipeline Outlook

• 5-6 new launches

• 2 generic API launches

• 1 drug products launched in US

• 1[st] co-developed US ANDA � Chinese (CFDA) inspection at Changshu site

• launched � US FDA inspection at Injectable plant

• 2017 2018 2019 2020

• 3-5 generic API launches

• 4-5 new launches

• 2 co-developed China ANDAs and 1 co-developed US ANDA launched

• 1[st ] in-house drug US ANDA filing

• 1[st] self-developed US ANDA launched

• 1 co-developed US ANDA launched

34

==> picture [721 x 136] intentionally omitted <==

Brand Quality with Asian Advantages www.scinopharm.com

==> picture [721 x 136] intentionally omitted <==

35