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SPT Investor Presentation 2017

Oct 30, 2017

51922_rns_2017-10-30_fdd315c6-a943-47c3-b47f-591cb1236d3c.pdf

Investor Presentation

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1789 TT

ScinoPharm Management Presentation Daiwa Investment Conference New York & San Francisco 2017

May 30, 2017

1

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.

2

2

Confidential

Table of Content

Overview of ScinoPharm

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ScinoPharm’s Strategies and Opportunities

Operating Results & Business Updates

3 3

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Overview of ScinoPharm

4

ScinoPharm at a Glance

  • 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

5

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
6
28
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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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7

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)
8 11
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Confidential

ScinoPharm - Oncology API Leader

Stand-Alone API Companies

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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 33 10
0 50 100 150 200 250 300
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9 Source: USFDA DMF Q3 2016 database
9
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Confidential
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2017 Q1 Sales Distribution

By Indication

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By Business
By Region
Oncology
63%
Generic
77%
10
10
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ScinoPharm’s

Strategies and Opportunities

11

Business Growth Drivers

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

  • Build partnerships to speed up the momentum of vertical integration

  • 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 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

4.Continue optimizing existing generic APIs

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

12

28

We are Transforming our Company

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Confidential
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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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13

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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14
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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
2017
1st US ANDA filing, triggering US FDA inspection in
Changshu, China site*
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 2017 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
Azacitidine MDS China 2021 Co-developed formulation in China
Lee’s Pharma Fondaparinux Anti-thrombotic China 2021 Co-development collaboration
Travoprost &
Bimatoprost
Glaucoma China 2021
Nanjing King
Friend
Regadenoson Stress agent for heart
scan
China 2020 Co-developed formulation in China
15
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
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

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 2017. Expected submission of 1st in-house ANDA in 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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28
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16

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17

Aseptic Fill & Finish Service

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Confidential
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Vial
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18

CRO Phase III Product Portfolio

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Confidential
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Code
Est. NDA
Filing Year
Indication
Region
Regional
Sales
Remarks

Completed process validation. Anticipated launch in**
Code
Est. NDA
Filing Year
Indication
Region
Regional
Sales
Remarks

Completed process validation. Anticipated launch in**
Code
Est. NDA
Filing Year
Indication
Region
Regional
Sales
Remarks

Completed process validation. Anticipated launch in**
Code
Est. NDA
Filing Year
Indication
Region
Regional
Sales
Remarks

Completed process validation. Anticipated launch in**
Code
Est. NDA
Filing Year
Indication
Region
Regional
Sales
Remarks

Completed process validation. Anticipated launch in**
Code
Est. NDA
Filing Year
Indication
Region
Regional
Sales
Remarks

Completed process validation. Anticipated launch in**
Code
Est. NDA
Filing Year
Indication
Region
Regional
Sales
Remarks

Completed process validation. Anticipated launch in**
Code
Est. NDA
Filing Year
Indication
Region
Regional
Sales
Remarks

Completed process validation. Anticipated launch in**
Code Est. NDA
Filing Year
Indication Region Regional
Sales**
Remarks
Completed process validation. Anticipated launch in
A 2016* Infectious Disease US / EU
/ Asia
$1.4 bn
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
C 2018 Advanced Hepatocellular
Carcinoma, Myelofibrosis,
Autoimmune disease, etc.
CN N/A 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
Started process validation. Anticipated launch in 2019
D
2018
Prostate Cancer
US / EU
$2.4 bn

and revenue of several million USDperyear
E
2018
Parkinson’s Disease
US
$1.0 bn
Novel mechanism with promising demand. Anticipated
launch in 2019 with demand in tons. Expected revenue
of several million USD per year
D 2018 Prostate Cancer US / EU $2.4 bn
and revenue of several million USDperyear
E 2018 Parkinson’s Disease US $1.0 bn Novel mechanism with promising demand. Anticipated
launch in 2019 with demand in tons. Expected revenue
of several million USD per year

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

19 19

11

China and Japan Market Development

China

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Confidential
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  • Accelerate progress to create positive cash flow

  • Focus on mid- to late-phase CRO projects. Current portfolio includes agents for oncology, antihypertension, 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

20

20

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

21

21

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Confidential
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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




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
22
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

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

23

28

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Operating Results & Business Updates

24

Quarterly P&L - Consolidated

In NT$ million, except for EPS
Q1, 2017
(Reviewed)
Q1, 2016
(Reviewed)
YoY
Operating Revenue
919
1,022
-10%



In NT$ million, except for EPS
Q1, 2017
(Reviewed)
Q1, 2016
(Reviewed)
YoY
Operating Revenue
919
1,022
-10%



In NT$ million, except for EPS
Q1, 2017
(Reviewed)
Q1, 2016
(Reviewed)
YoY
Operating Revenue
919
1,022
-10%



In NT$ million, except for EPS
Q1, 2017
(Reviewed)
Q1, 2016
(Reviewed)
YoY
Operating Revenue
919
1,022
-10%



In NT$ million, except for EPS
Q1, 2017
(Reviewed)
Q1, 2016
(Reviewed)
YoY
Operating Revenue
919
1,022
-10%



In NT$ million, except for EPS
Q1, 2017
(Reviewed)
Q1, 2016
(Reviewed)
YoY
Operating Revenue
919
1,022
-10%



In NT$ million, except for EPS Q1, 2017
(Reviewed)
Q1, 2016
(Reviewed)
YoY
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)
N I bf T 192 191 1%
et ncome eore ax



Net Income after Tax
170
172
-1%
Net margin after tax
19%
17%
EPS (after tax)
0.22
0.23
et ncome eore ax
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 25

Balance Sheet- Consolidated

In NT$ million
2017/03/31
(Reviewed)
2016/03/31
(Reviewed)
Cash and Cash Equivalents
3,715
29%
2,560
21%
Accounts Receivable
635
5%
645
5%
In NT$ million
2017/03/31
(Reviewed)
2016/03/31
(Reviewed)
Cash and Cash Equivalents
3,715
29%
2,560
21%
Accounts Receivable
635
5%
645
5%
In NT$ million
2017/03/31
(Reviewed)
2016/03/31
(Reviewed)
Cash and Cash Equivalents
3,715
29%
2,560
21%
Accounts Receivable
635
5%
645
5%
In NT$ million
2017/03/31
(Reviewed)
2016/03/31
(Reviewed)
Cash and Cash Equivalents
3,715
29%
2,560
21%
Accounts Receivable
635
5%
645
5%
In NT$ million
2017/03/31
(Reviewed)
2016/03/31
(Reviewed)
Cash and Cash Equivalents
3,715
29%
2,560
21%
Accounts Receivable
635
5%
645
5%
In NT$ million
2017/03/31
(Reviewed)
2016/03/31
(Reviewed)
Cash and Cash Equivalents
3,715
29%
2,560
21%
Accounts Receivable
635
5%
645
5%
In NT$ million
2017/03/31
(Reviewed)
2016/03/31
(Reviewed)
Cash and Cash Equivalents
3,715
29%
2,560
21%
Accounts Receivable
635
5%
645
5%
In NT$ million 2017/03/31
(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%
Current Liabilities 1,692 13% 2,374 19%
Long-Term & Other Liabilities 803 6% 90 1%
Stockholders’ Equities 10,358 81% 10,027 80%

26

Cash Flows- Consolidated

In NT$ million
Q1, 2017
(Reviewed)
Q1, 2016
(Reviewed)
Cash and cash equivalents
at beginning of period
3,707
2,336
In NT$ million
Q1, 2017
(Reviewed)
Q1, 2016
(Reviewed)
Cash and cash equivalents
at beginning of period
3,707
2,336
In NT$ million
Q1, 2017
(Reviewed)
Q1, 2016
(Reviewed)
Cash and cash equivalents
at beginning of period
3,707
2,336
In NT$ million
Q1, 2017
(Reviewed)
Q1, 2016
(Reviewed)
Cash and cash equivalents
at beginning of period
3,707
2,336
In NT$ million
Q1, 2017
(Reviewed)
Q1, 2016
(Reviewed)
Cash and cash equivalents
at beginning of period
3,707
2,336
In NT$ million Q1, 2017
(Reviewed)
Q1, 2016
(Reviewed)
Cash and cash equivalents
at beginning of period
3,707 2,336
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
at end of period
3,715
2,560
Free Cash flow
101 399
Cash and cash equivalents
at end of period
3,715 2,560

27

Historical Performance

Unit: millions of NT$

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5,088
4,572
5,000
3,887 3,953 4,098 3,955 4,031
3,791
4,000
3,145
2,494
3,000
2,000
872
613 1,041
1,000 1,040 961 1,170 1,273
484
484 635 659
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
28
12
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Recent Financials

In NT$

Year
2013
2014
2015
2016
Total assets
11,484 M
11,372 M
12,222 M
12,783 M
Year
2013
2014
2015
2016
Total assets
11,484 M
11,372 M
12,222 M
12,783 M
Year
2013
2014
2015
2016
Total assets
11,484 M
11,372 M
12,222 M
12,783 M
Year
2013
2014
2015
2016
Total assets
11,484 M
11,372 M
12,222 M
12,783 M
Year
2013
2014
2015
2016
Total assets
11,484 M
11,372 M
12,222 M
12,783 M
Year
2013
2014
2015
2016
Total assets
11,484 M
11,372 M
12,222 M
12,783 M
Year
2013
2014
2015
2016
Total assets
11,484 M
11,372 M
12,222 M
12,783 M
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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28

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)

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32

Pipeline Outlook

  • 2 generic API launched

  • 2 generic API launched5-6 generic API launched

  • 1[st] co-developed US ANDA launchedUS FDA inspection at Injectable plant1 co-developed US ANDA launched 2017 2018 2019 2020

  • 3-5 generic API launched4-5 generic API launched1[st ] in-house drug US ANDA filed2 co-developed China ANDAs1[st] self-developed US ANDA launched1 co-developed US ANDA launched4 NDAs filed by CRAM customersChinese (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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