SPT — Investor Presentation 2017

Jan 9, 2017

1789 TT

ScinoPharm Management Presentation 2017 JP Morgan Healthcare Conference

January 11, 2017

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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 - Formulation Business

- China Market

• Operating Results & Outlook

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Overview of ScinoPharm

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Background

• 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 (752 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

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World Class API 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

• Global Market

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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

• 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)
7 11
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Diversified CRAM Portfolio

Confidential

*** Already Filed**

Confidential Diversified CRAM Portfolio * Already Filed	Confidential Diversified CRAM Portfolio * Already Filed	Confidential Diversified CRAM Portfolio * Already Filed	Confidential Diversified CRAM Portfolio * Already Filed	Confidential Diversified CRAM Portfolio * Already Filed	Confidential Diversified CRAM Portfolio * Already Filed
Stage First Launch Year Indication Market(s) Commercial 2005 Eluting Stent US Commercial 2009/2013 Skin Infection/HAP US/EU
	**Stage **	First Launch Year	Indication	Market(s)
	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	Market(s)
	Phase III	2016*	Infectious Disease	US / EU / Asia
	Phase III	2017	Ovarian Cancer	US / EU
11 8 8 Phase III 2017 Prostate Cancer US Phase III 2017 Ovarian Cancer CN Phase III 2018 Parkinson’s Disease US
	Phase III	2017	Prostate Cancer	US
	Phase III	2017	Ovarian Cancer	CN
	Phase III	2018	Parkinson’s Disease	US

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
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Confidential
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2016 Sales Distribution

By Indication

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Others
12%
CNS
By Business 12%
BD&
CMO
Others
CRO 2% Oncology
<1% By Region
12% 76%
Oncology
AZ+NZ
ROW
China 63%
2%
7%
JP 4%
Generics
8%
Generic 86%
77% India
10%
US+CAN
EU
49%
20%
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ScinoPharm’s

Strategies and Opportunities

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Confidential

We are Transforming our Company

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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

• Opportunity Strategy Tactics

• � Already the leader in providing � Developing dossiers per our � Expanding formulation oncology APIs to regulated difficult-to-make APIs to increase portfolio 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 filing un-met oncology medical needs US/EU with FDA of high prevalence in Asia

• 2 US ANDAs

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

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Strategic Alliance Highlights * Already launched

Partner Product Indications Region Launch Year(E) Remarks Genovate Entecavir Hepatitis B 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 Chanshu 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 Chanshu 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 Chanshu 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 Chanshu 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 Chanshu 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 Chanshu 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 Chanshu 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 Chanshu 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 Chanshu China site
						g,
	Foresee	Leuprolide	Prostate cancer	US	2018	505(b)(2) NDA CRAM + Equity
	Coland	Bortezomib	Multiple Myeloma	China	2020	1st co-developed drug in China to trigger CFDA inspection in Changshu site
		Azacitidine	MDS	China	2021	Co-developed formulation in China
	Lee’s Pharma	Fondaparinux	Anti-thrombotic	China	2021	Co-development collaboration
		Travoprost Bimatoprost	Glaucoma	China	2021
14 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 2018 US NDA 505(b)(2) with Paragraph IV filing / The estimated launch year is subject to litigation results US & China partners Project B Imaging agent US 2021 ANDA with Paragraph IV filing / The estimated launch year is subject to litigation results
	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	2018	US NDA 505(b)(2) with Paragraph IV filing / The estimated launch year is subject to litigation results
	14 US & China partners	Project B	Imaging agent	US	2021	ANDA with Paragraph IV filing / The estimated launch year is subject to litigation results

In-House Injectable Plant Progress and Outlook

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

• Planned registration batch production by 2017. Expected to submit the first in-house ANDA in 2018 and pass US FDA inspection 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

• Nine drug products planned in the indications of cancer, diabetes, osteoporosis, multiple sclerosis, and anti-emesis

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Confidential

Aseptic Fill & Finish Service

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Vial
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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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Strategic Goals in China

Short Term: Pass CFDA/EMA/EDQM inspections and expand CRAM services to diversified indications & processes to optimize portfolio and capacity utilization

Mid Term: Execute API+ANDA strategy by collaborating with formulators to apply for ANDA in US/EU/CN and share profits from drug product sales globally

Long Term: Expand into new delivery formulations and new drugs via strategic alliances, investments, and M&A

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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
	Chinapharm 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 20	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

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Operating Results & Outlook

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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
1,273 For Q1-Q3
1,000 1,040 961 1,170
484 only
484 635
512
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
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Recent Financials

In NT$

Year 2013 2014 2015 Total assets 11,484 M 11,372 M 12,222 M	Year 2013 2014 2015 Total assets 11,484 M 11,372 M 12,222 M	Year 2013 2014 2015 Total assets 11,484 M 11,372 M 12,222 M	Year 2013 2014 2015 Total assets 11,484 M 11,372 M 12,222 M	Year 2013 2014 2015 Total assets 11,484 M 11,372 M 12,222 M	Year 2013 2014 2015 Total assets 11,484 M 11,372 M 12,222 M
	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	1.2	0.2	0.3
	Stock dividends	0.4	0.4	0.4
Pay-out ratio 85% 87% 80%
	Pay-out ratio	85%	87%	80%

Note : All of the above figures represent consolidated information

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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
	API	Desmopressin Acetate	USA	Polyuria	Ferring	US$166M	US$405M
	API	Tamsulosin HCl	USA	Benign Prostatic Hyperplasia (BPH)	Boehringer Ingelheim	US$333M	US$1706M
	Generic Drug	Oncology Injectable	US	Myeloid Leukemia	MDS	US$183M	US$278M
CMO Project Oral USA EU Antibiotics N/A N/A N/A
	CMO Project	Oral	USA EU	Antibiotics	N/A	N/A	N/A

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Source: IMS Data (2015Q3-2016Q2)
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Pipeline Outlook

• 3-5 new launches

• 1[st ] in-house drug US ANDA filing

• 1[st] self-developed US ANDA launched

• � 1 co-developed US ANDA launched

• 4-5 new launches

• 2 co-developed China ANDAs launched

2017 2018 2019 2020

• 2 new launches

• 1[st] co-developed US ANDA launched

• 5-6 new launches

• 1 drug products launched in US

• Chinese (CFDA) inspection at Changshu site

• US FDA inspection at Injectable plant

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Confidential

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Brand Quality with Asian Advantages

www.scinopharm.com 1789 TT

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