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LOTUS PHARMACEUTICALBUILDING A REGIONAL LEADER

Oct 2017

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Safe Harbor Statement

Except for historical information contained herein, the matters set forth in this presentation are forward

looking statements that are subject to risks and uncertainties that could cause actual results to differ

materially. These forward looking statements are not based on historical facts but rather on

management’s expectations regarding future growth, results of operations, performance, future capital

and other expenditures, competitive advantages, business prospects and opportunities. Statements in

this presentation about our future plans and intentions, results, level of activities, performance, goals or

achievements or other future events constitute forward looking statements. Wherever possible, words

such as “anticipate”, “believe”, “expect”, “may”, “could”, “will”, “potential”, “intend”, “estimate”, “should”,

“plan”, “predict”, or the negative or other variations of statements reflect management’s current beliefs

and assumptions and are based on the information currently available to our management. Investors

are cautioned not to place undue reliance on these forward looking statements, which are made

as of the date of this presentation and we assume no obligation to update or revise any forward

looking statements.

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Table of Contents

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Company Overview

Profitable Growth

1H 2017 Financial Results

Recent Developments

2017 Guidance

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COMPANY OVERVIEW

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LOTUS PHARMACEUTICAL IS AN APAC GENERICS LEADER

1

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Founded in 1966Lotus Pharmaceutical is among Taiwan’s largest specialty-generic drug

developers and one of the early movers to export to the US market since 2011

Its portfolio includes CNS, CVS, oncology, women health, anti-obesity, respiratory

and pain relief in forms of tablet, capsule, and soft gel capsule

The rising generic leader in APACLotus is positioned as a regional platform for Alvogen Group (63.4% holding in

Lotus) since Aug 2014 through a reverse merger, and leverages Alvogen Group’s

cross-border reach to scale up

The current operation scope of Lotus spans across Lotus Taiwan’s domestic

business, Alvogen Korea’s domestic business, Alvogen Pharma India’s CRO

business, and export businesses

Capital market milestone

Lotus Pharmaceutical (1795. TWO) has been listed on Taipei Stock Exchange

since 2010 and became a Taiwan Market Biotechnology and Medical Care Index

stock in July 2017

Extraordinary quality management Lotus’ R&D and manufacturing facilities in Nantou is the only one in Asia that’s

approved by US FDA, EU EMA, Japan PMDA and TFDA PIC/S

1

2

3

4

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70+ Generic products in pipeline

2 Biosimilar products in pipeline (mab’s)

8 MAs in the US; 25 MAs in Europe;

9 MAs in Japan; 1 MA in China

A FAST GROWING GENERICS & SPECIALTY PHARMACEUTICAL POWERHOUSE

Lotus facts

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1000+ Employees

3 Manufacturing and R&D Centers

250+ Marketed products

140+ Submissions since 2012

11%

19%

23%

47%

Lotus Taiwan EmployeesTotal: 365

G&A

R&D

S&M

Plant

9%7%

52%

32%

Alvogen Korea Employees Total: 561

G&A

R&D

S&M

Plant

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36% 34% 34%30% 30% 28% 29%

41.7%

26%22%

12%12% 10%

12% 10% 14%16%

8.9%

10%10%

4%4% 7%

7%4%

4%6%

15.7%

6%

4%

5.4% 6.8%11.4%

8.5% 10.4%12.9%

5.6%

-13.0%

5.6%10.6%

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17

SM GA RD OPM

THE PAST 2 YEARS WERE TRANSITIONAL

Operating synergy emerging following transitions in portfolio and S&M strategies

OPEX % 69% 50%

1,590 2,780Total OPEX

(NT$mn)

50% 50% 49%

669 711 725

44%

631

52%

675

46%

742

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51%

729

43%

33% 32%

24%

20%

12% 12%

10%

6%

5% 8%

5%

FY2014 FY2015 FY2016 1H2017

52%

3,084

66%

982

42%

592

39%

1,172

37%

580

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EXPANDING REVENUE AND GROSS MARGIN ARE OUR TOP PRIORITIES

Revenue (NT$m) Gross margin

663

12941337

14171473

1425

1594

14041479

1436

1577

Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17

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43%

58% 57%

62%

58%

55%

59%57%

54%

47% 47%

Q4'14Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17

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2015-2016

POST MERGERINTEGRATIONPHASE

2017-2018

INITIALGROWTHPHASE

2019～

EXPLOSIVEGROWTHPHASE

AFTER 2.5 YEARS OF INTEGRATION, LOTUS IS ENTERING INTO A GROWTH PHASE

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• Plant upgrade in Nantou,

Taiwan

• Successful management

team change

• Portfolio and pipeline

reshape

• Sales and marketing

strategy adjustment

• Solidify local portfolio

through key launches

• Start shipments of ANDA

approved drugs

• Continue to increase

operational efficiency

• Export revenues to

significantly grow from

several successful key PIV-

challenges

• High value products to drive

up gross margin

• Continue to improve

financial structure

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PROFITABLE GROWTH

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OUR GOAL IN THE NEXT 3 YEARS IS TO DELIVER PROFITABLE GROWTH

Back to Basics

Value Differentiation

Geared Up For The Future

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Profitable

Growth• 20+% Rev. CAGR 2016-2020

• GM to improve >10% by 2020

• ROE > 20% by 2020

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BACK TO BASICS

• Strongest Portfolio

• Best Service

• Best Quality

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28%

22%

4%3%2%

41%

Anti-obesity/lifestyle & Gastrointestinal productsCardiovascularCentral Nervous SystemOncologyWomen healthcare

17%

17%

6%

16%5%

39%

STRONGEST PORTFOLIO SURROUNDING 5 SPECIALTY AREAS

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Note: Others include respiratory system, pain killers, nephrology, anti-inflammatory and so on

2016E to 2020F therapeutic area revenue breakdown

2016A 2020F

19%

18%

8%16%

6%

33%

1H2017

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STRONGEST LOCAL PORTFOLIO WITH MARKET SHARE LEADER POSITION

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KOREA TAIWAN

Market

Size

• Population: 50mn

• Pharmaceutical market: US$15.8bn @

3.7% YoY growth

• Population: 23mn

• Pharmaceutical market: US$5.5bn @

7.1% YoY growth

Market

Position

• Focuses on Incrementally Modified

Drug such as Fixed Dosage

Combination

• Anti-obesity drugs market share leader

(20%) in Korea

• OTC contraceptive drug market share

leader (40%) in Korea

• Leading player in CVS, CNS and

nephrology drugs

• Top 3 pharma company in Taiwan on

consolidated revenue base

• Leading player in CNS, oncology and

hormonal drugs

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LOTUS PHARMACEUTICAL PROVIDES BEST SERVICE IN EVERY ASPECT

1

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Growing key markets sales team

70 in-house sales in Taiwan and 299 in-house sales in Korea, covering drug

stores, clinics, general and community hospitals

The best R&D partner

Partner with new drug companies from formulation development, phase I, or

clinical trial, providing critical CDMO or R&D services to new oncology drugs

companies targeting advanced markets such as US, EU and JP

Achieving vertical integration through CRO capabilities in India

Norwich Clinical Service provides biostudy, clinical and pharmacovigilance

services to Lotus & Alvogen Group and 3rd party customers, and holds an

oncology center in Bangalore, India

1

2

3

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BEST QUALITY MAKES US THE MOST PREFERRED PARTNER OF OUR CUSTOMERS

Lotus quality record

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Korea – Gongju Plant Korea – Hyangnam Plant Taiwan – Nantou Plant

Products

• Tablets

• Coated tablets

• Hard capsules

• Powders, granules

• Tablets

• Coated tablets

• Hard capsules

• Powders, granules

• Tablets

• Coated tablets

• Softgel capsules

• Hard capsules

Capacity• Max capacity at 500mn

units of tablets

• Max capacity at 800mn

units of tablets

• Max capacity at 1.5bn

units of tablets

Accreditation • KGMP compliant • KGMP compliant

• US FDA, EU EMA, Japan

PMDA & TFDA PIC/S

approved

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VALUE DIFFERENTIATION

• Shortest Time to Market

• High Value Pipeline

• Leader in Special Dosage

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Capture global generics growth through Alvogen’s 3 regional platforms

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North America

$115-145bn growth

Latin America

$25-35bn growth

Europe

$25-35bn growthAsia

$100-130bn growth

AFME

$15-25bn growth

IMS “Global Spending On Medicines 2014-2020”

49%

44%

7%

9%

61%

30%

33%

50%

30%

37%

46%

30%

26%

59%

15%

35%

52%

13%

Brand Generic Other

Global

$305-335bn growth

LEVERAGE ALVOGEN‘S GLOBAL SALES NETWORK TO CROSS SELL

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THEREFORE, LOTUS CAN ACHIEVE SHORTEST TIME TO MARKET

• Ability to leverage customer demand information across the group

• Robust regional supply chain network

✓ Prompt and seamless coordination of complex supply and distribution network

✓ Supported by 5 manufacturing sites across the Lotus and Alvogen group

• Ability to deliver 97% order next-day without major stock-outs

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HIGH VALUE PIPELINE FUELS REVENUE AND PROFITABILITY GROWTH

Export timeline from now – 2020 approval out-license shipment

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INN Indication 1H’16 2H’16 1H’17 2H’17 2018 2019 2020

Paricalcitol

1/2/4 mcg

Nephrology

慢性腎衰竭

Temozolomide

5/20/100/140/180/

250 mg

Brain Cancer

腦癌

Levetiracetam

ER 500/750mg

IR 250/750/1000mg

Anti-epilepsy

抗癲癇

Levonorgestrel

0.75mg

Contraceptive

避孕

Calcium Acetate

667mg

Nephrology

洗腎

Budesonide ER GI

結腸潰瘍

Buprenorphine/

Naloxone

Addiction

戒毒

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INN Indication 1H’16 2H’16 1H’17 2H’17 2018 2019 2020

Methotrexate Chemo

癌症

GefitinibNon-small-cell lung

cancer; Inhibitor

非小細胞肺癌

LP127 Anti-epilepsy

抗癲癇

LP083

(CDMO project / JP)

Women health

女性保健

Acarbose Antidiabetic

糖尿病

Vinorelbine

softgel capsule

Breast cancer

乳癌

Lenalidomide Multiple

Myeloma

血癌

LP149 Women health

女性保健

Export timeline from now – 2020 approval out-license shipment

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Strength extension

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LOTUS PHARMACEUTICAL IS THE REGIONAL LEADER IN SPECIAL DOSAGE

Soft Gel Manufacturing

• Investment in dedicated manufacturing area starting 2009 and

current capacity at 500mn capsules / year

• State of the Art equipment

✓ Closed melting and mixing Tanks

✓ PharmaGel GKF-072 filling machine

✓ Fully automatic visual inspection

• Extensive soft gel manufacturing experience in

✓ BCS class III & class IV new drug

✓ Generics low melting point molecules

✓ Generics with low stability molecules that are sensitive to

light, heat and humidity

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GEARED UP FOR THE FUTURE

• Biosimilar Ready

• M&A Mode Always On

• Winning Business Strategies

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0.1 0.1 0.2 0.3 0.6 1.5

3.7

6.5

9.1

10.6 11.1

12.1 12.5 12.7

0.4 0.5 0.6 0.7 0.9

1.1

1.5

2.2

2.8

3.4

3.8

4.2

4.9 4.8

0.1 0.1 0.1 0.1 0.2

0.2

0.4

0.6

0.8

1.0

1.2

1.5

1.7 1.9

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

2012 2013 2014 2015 2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F

US Europe ROW

BIOSIMILAR READY

Lotus’ Biosimilar Play

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• Biosimilars have reached an inflection point and we expect very rapid growth from

2017 onwards

• Secured APAC ex. Japan distribution rights of 2 biosimilar products of Alvotech,

Alvogen’s sister company

US$Bn

Source: PharmaCloud

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M&A MODE ALWAYS ON

Pharmaceutical Market Size (US$bn)5yr CAGR (%)

2.1%

9.9%

11.6%

3.7%

9.2%

7.1%

7.3%

5.2%

13.9%

11.5%

9.2%

8.0%

7.6% 0.8

1.6

2.0

2.2

3.3

3.8

4.5

5.5

5.9

15.8

16.7

98.8

107.0

Singapore

Hong Kong

Bangladesh

Malaysia

Vietnam

Philippines

Thailand

Taiwan

Indonesia

Korea

India

China

Japan

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Constantly looking for companies that complements our S&M strategy or portfolio

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AS THE EXPERT IN ASIA, LOTUS HAS A SET OF WINNING BUSINESS STRATEGIES

Being the expert in APAC pharmaceutical market

• We address APAC market through both local sales team and distribution network

• We fulfill the neglected generic needs of key local markets to bring down healthcare cost

for more people

• We out-license or divest certain portfolio that are better fits of other pharmaceuticals to

extract full value of our assets

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1H 2017 FINANCIAL RESULTS

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HIGHER OPERATIONAL EFFICIENCY LED TO A PROFITABLE QUARTER

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Unit: NT$000 2Q 2017 % 2Q 2016 % 1Q 2017 % YoY QoQ

REVENUE $1,577,430 100 $1,594,332 100 $1,436,112 100 -1.1% 9.8%

COGS 829,640 53 647,382 41 763,716 53 28.2% 8.6%

GROSS PROFIT 747,790 47 946,950 59 672,396 47 -21.0% 11.2%

OPEX

S&M 350,393 22 450,149 28 366,801 26 -22.2% -4.5%

G&A 160,021 10 225,584 14 146,902 10 -29.1% 8.9%

R&D 69,653 4 66,093 4 78,262 6 5.4% -11.0%

Total OPEX 580,067 37 741,826 47 591,965 42 -21.8% -2.0%

OPERATING PROFIT (LOSS) 167,723 11 205,124 13 80,431 5 -18.2% 108.5%

NON-OP INCOME & EXP

Finance costs (63,341) (4) (71,021) (4) (61,139) (4) -10.8% 3.6%

Others 1,774 0 (12,481) (1) (87,189) (6) - -

Total non-op expenses, net (61,567) (4) (83,502) (5) (148,328) (10) -26.3% -58.5%

INCOME BEFORE TAX 106,156 7 121,622 8 (67,897) (5) -12.7% NA

INCOME TAX EXPENSE

(BENEFIT)48,632 3 67,267 4 (5,806) - -27.7% NA

NET ERANINGS (LOSS) 57,524 4 54,355 3 (73,703) (5) 5.8% NA

EPS $0.15 $0.07 $(0.30) 114.3% NA

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2Q 2017 FINANCIAL HIGHLIGHTS

EPS more than doubled YoY and OP more than doubled QoQ

• Significantly lowered OPEX:

• Hospital oriented portfolio positive for streamlining sales force

• No more one-time write-off surprises

• Focused R&D spending

• Higher EPS generated: More balanced profit structure between Korea and Taiwan eased

the impact of non-controlling interest of Alvogen Korea Co. and thus higher EPS

• No FX loss for 4 consecutive quarters

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Normalized gross margin build-up (in NT$000,000)

Total 1H17 3,013 1,593 1,420 47%

Inventory write-off (33) 33 48%

Pushed-out R&D

milestone fee recognition 91 0 91 51%

GROSS MARGIN DECREASE IS A TEMPORARY PAIN

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Revenues COGS Gross Profit Gross Margin

Short term gross margin pressed by product mix shift in Korea and

conservative accounting policy regarding R&D milestone fee recognition

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LOTUS COMPLETED FIRST RE-FINANCING STAGE TO STRENGTHEN B/S AND P&L

• The financing costs that came following multiple company and portfolio acquisitions since

2014 has been the Achilles’ heel of Lotus

• To tackle that, we completed the first small scale re-financing by end of the second quarter

with an estimated size of up to NT$5.6 billion across Korea, Taiwan and Hong Kong

• Upon completion, interest rate decreased to 4%

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Summary and impacts of the re-financing completed end of June

Post Re-Fi

• Facility line/debt level is ~21% higher post-refinancing

• However, on an apple to apple basis (adjusted for old principle), interest

expense could have decreased nearly NT$ 60 million in the next 12 months

• Several high value assets have emerged in our radar and therefore we need

current facility line to support us

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RECENT DEVELOPMENTS

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ACQUIRING ACLASTA IS A BREAKTHROUGH FOR LOTUS

• First branded portfolio acquisition for hospitals

• First injection/vial product

• First entry into osteoporosis, a generic-unfriendly TA

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Aclasta is our…

Through the product acquisition, Lotus

• Strengthened our portfolio in Taiwan and will expand the launch to other APAC countries next year

• Will expand end market by tapping into new categories with great potential

✓ Lotus has strong track record of growing the market of our acquired portfolio

• Will pave our way into more osteoporosis products

Lotus acquired the branded Osteoporosis product Aclasta solution for infusion

from Novartis AG and commenced the marketing of Aclasta in Taiwan. No

product transition downtime in the first year of launch and Lotus expects to grow

this product significantly next year – first clear upward trend in 3 years for Aclasta.

APR2017

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WE BEGAN TO SEE SIGNIFICANT PROGRESS IN LOTUS ONCOLOGY FRANCHISE

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Lotus officially started building its global oncology franchise through self

developed “fast follower” products, exclusive marketing alliances with brands,

and CMO projects with APAC biotech star-ups

2017

High Potency Products

Cytotoxics

Hormones

TabletsHard gel capsules

Softgelcapsules

Why are high potency products key to growth?

• Oncology drugs are dominating US approvals: According to

Evercore, cancer drug approvals from 2012 to 2016 in the US

were 50, doubling from 2007 to 2011 numbers and >200%

higher than treatments for other therapeutic areas

• By 2022, global TAM for top 15 oncology drugs will be US$

90 billion small molecules and biosimilar combined according

to IMS

• By 2020, oncology is the only therapeutic area that will have

double digit CAGR according to EvaluatePharma

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2017 IS THE TIPPING POINT OF GEOGRAPHIC DIVERSIFICATION

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2016FY 1H2017

While Korea remains our backbone thanks to its market potential and favorable

regulatory environment, Lotus has started to balance its geographic exposure by

growing Taiwan domestic and export market

2017

85.4%

8.0%

2.6% 4.0%

Korea

Taiwan

Export

India CRO 84.0%

10.2%

3.8% 2.0%

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2017 GUIDANCE

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2017 OUTLOOK: ALL CYLINDERS ARE FIRING

Financial outlook

• Revenue growth: mid-teens growth YoY

• Operating profit: >40% growth YoY

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Main growth drivers

• Key launches in Taiwan to drastically improve Taiwan domestic sales and margins

• Export related revenues to more than double from shipments to the US, milestone fess

and out-licensing

• Penetrate into oncology in Korea through in-licensing and cross-selling

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The foundation for vision 2020

FUEL FOR GROWTH

We will continue to set a new standard for our

industry outlined in a simple strategic model

BEST IN CLASS CUSTOMER SERVICE

HIGHEST QUALITY

HIGH OPERTIONAL EFFICIENCY

TARGETED PORTFOLIO

ONLY THE BEST PEOPLE

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APPENDIX

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TOP 15 PRODUCTS 2016

Product Indication YTD (NT$mn) YoY (%) Remarks

1 Sarpogrelate Anticoagulant 抗凝血 370.2 +158% Dosage improved to 1/day

2Calcium Polystyrene

SulfonateNephrology 腎臟病 352.0 +3%

3 Seroquel (Quetiapine) Schizophrenia 精神分裂症 344.5 +306%

Exclusive marketing alliance

with AstraZeneca Korea;

launched in Oct’15

4 Phentermine Anti-obesity 減肥 311.0 -15%

5 Phendimetrazine Anti-obesity 抑制食慾 231.1 -15%

6 Orlistat Anti-obesity 減肥 223.6 -23%

7 Rosuvastatin/EzetimibeCardiovascular降血脂與膽固醇

206.8 - FDC; launched in 1Q16

8 Desogestrel/EE (Mercilon)Oral contraceptive

口服避孕藥196.4 -

Acquired from Bayer; launched

in May’16

9 Goserelin (Zoladex) Breast cancer 乳癌 115.6 -Acquired from AstraZeneca;

launched in Oct’16

10 Topiramate CNS 抗癲癇 109.8 -20%

11 Ibandronate-Vitamin D3 Osteoporosis 骨質疏鬆症 102.5 +178%

12 Bicalutamide Prostate cancer 攝護腺癌 90.4 -Acquired from AstraZeneca;

launched in Nov’16

13Recombinant human

erythropoietin

Nephrology & Cancer腎臟病與癌症用紅血球生成素

85.4 -23%

14Ephedrine/

Acetaminophen/Caffeine

Pain killer止痛

83.3 -8%

15 Diltiazem Cardiovascular 降血壓 78.9 +17%Page I 45

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TOP 15 PRODUCTS 1H 2017

Product Indication YTD (NT$mn) YoY (%) Remarks

1 Goserelin (Zoladex) Breast cancer 乳癌 258.6 -Exclusive marketing alliance with

AstraZeneca KR; launched Oct’16

2 Sarpogrelate Anticoagulant 抗凝血 195.4 -11% Dosage improved to 1/day

3Calcium Polystyrene

SulfonateNephrology 腎臟病 173.4 0%

4 Rosuvastatin/EzetimibeCardiovascular降血脂與膽固醇

126.9 +41% FDC; launched in 1Q16

5 Seroquel (Quetiapine) Schizophrenia 精神分裂症 154.5 -15%Exclusive marketing alliance with


6 Phentermine Anti-obesity 減肥 126.9 -29%

7 Desogestrel/EE (Mercilon)Oral contraceptive

口服避孕藥126.0 +169%

Acquired from Bayer; launched in

May’16

8 Bicalutamide Prostate cancer 攝護腺癌 110.4 +298%Exclusive marketing alliance with


9 Phendimentrazine Anti-obesity 抑制食慾 95.8 -27%

10 Anastrozole (Arimidex) Oncology 癌症 93.3 -Exclusive marketing alliance with

AstraZeneca KR; launched 4Q’16

11 Orlistat Anti-obesity 減肥 74.1 -45%

12 Zoledronic Acid (Aclasta) Osteoporosis 骨質疏鬆症 72.7 -Acquired from Novartis; launched

Apr’17; TW product

13 Diltiazem Cardiovascular 降血壓 38.4 -4%

14 Ibandronate-Vitamin D3 Osteoporosis 骨質疏鬆症 55.0 -11%

15 Topiramate CNS 抗癲癇 37.7 -42%Page I 46

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Generic Name Indication Country Approval Date Remarks

1 Diosmin 500mg Metabolism

靜脈疾病TW Jan’16 In license

2 Olanzapine 5mg, 10mgSchizophrenia

精神分裂症TW Jan’16 In license

3 Paricalcitol 1mcg, 2mcg, 4mcg Nephrology

慢性腎臟病US Feb’16 Own development

4Temozolomide Capsles 5mg, 20mg,

100mg, 140mg, 180mg, 250mg

Brain cancer

腦癌US Apr’16 Own development;

5 Acyclovir Lyophilized 250 mgHerpes simplex infection單純皰疹感染

TW Apr’16 In license

6 Capecitabine 150mgCancer

癌症KR May’16 In license

7 Desogestrel/EE Tablet 0.15mg/0.02mgOral contraception

避孕KR May’16 Acquired

8 Levetiracetam ER Tablets CNS

抗癲癇US Jun’16 Own development

9 Pantoprazole 40mg LyophilizedGI腸胃道疾病

TW June’16 In license

10 Solifenacin Tablet 10mg, 5mgUrinary symptoms泌尿道疾病

KR June’16 Own development

11 Calcium Acetate Capsule 667mgNephrology

腎臟病US July’16 Own development

12 Capecitabine 500mgBreast Cancer乳癌

TW July’16 Own development

FLEXIBLE PORTFLIO STRATEGY INCLUDING IN/OUT LICENSING AND OWN R&D

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MA list 2016 (1)

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13 Phendimetrazine half strengthAnti-obesity

減肥KR July’16 Own development

14 Lamivudine Tablet 100mgHIV抗逆轉錄病毒

SEA Aug’16 CMO

15Temozolomide Capsules

20 mg &100 mg

Brain cancer

腦癌SEA Aug’16 Own development

16 Levonorgestrel Tablets 0.75 mgContraceptive避孕

US Sept’16 Own development

17 Remifentanil 2mgAnesthesia麻醉

TW Sept’16 In license

18Telmisartan/Amlodipine Besylate

Tablet 5mg, 10mg

CVS心血管疾病

KR Sept’16 Own development

19Levetiracetam IR Tablet

250mg, 750mg and 1000mg

CNS

抗癲癇US Oct’16 Own development

20Polyethylene glycol/Sodium

Picosulfate/D-sorbitol Oral Solution

Colon cleanser洗腸

KR Oct’16 Own development

21 Cinacalcet Tablet 25mgAnti-dementia

抗癡呆KR Dec’16 Own development

22 Choline Alfoscerate Tablet 400mgHyperthyroidism

甲狀腺亢進KR Dec’16 Own development

23 IxabepiloneBreast Cancer乳癌

TW Dec’16 In license

24

Drospirenone/ Ethinyl Drospirenone/

Ethinyl Estradiol

3mg/0.03mg Film-Coated Tablets

Contraceptive避孕

TW Dec’16 In license

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MA list 2016 (2)

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1 Aclasta 5mg/100ml Solution for infusion Osteoporosis骨質疏鬆

TW Jan’17 Acquired

2Rosuvastatin/Candesartan 5mg/8mg,

10mg/8mg, 10mg/16mg, 20mg/32mgCVS

心血管疾病KR May’17 Own development

3 Bortezomib (vial) 3.5mg, 1mg Mantle Cell Lymphoma

多發性骨隨瘤KR May’17 In license

4 Native black cohosh extractHerbal Medicine for Women Health更年期常見症狀

TW Sept’16 In license

5 Pregabalin 75mg, 150mgCNS帶狀泡疹後神經痛、局部癲癇

KR July’16 Own development

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MA list 1H 2017

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Generic Name Indication

IMS 2016

Market Size

(US$mn)

Formulation BE & CT Submission Approval

1DP-R213

(FDC)

Osteoporosis

骨質疏鬆22

2 AK-R214 (SR)Smoking Cessation

戒菸37

3 AK-R215 (FDC)Osteoporosis

骨質疏鬆18

4 AK-R308 Osteoporosis

骨質疏鬆8

HIGH VALUE PIPELINE BASED ON STRONG R&D CAPABILITIES

Continuous IMD pipeline for Korea

To be launched in 2017 - 2019

• Korea IMD (“Incrementally Modified Drug”) path is similar to US 505(b)2, which requires phase I and phase III study while enjoying

premium on NHI price; it usually takes 6 to 12 months to go through regulatory approval

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CDMO projects for Japan


IMS 2015

market size

(US$mn)


1 LP083Women health

女性保健100

2 Gefitinib

Non-small-cell lung

cancer

非小細胞肺癌130


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Generic Name Indication IMS 2015

market size

(US$mn)

CTP1

submission BE & CT

IDL2

submission Approval

1 LevonorgestrelContraception

避孕13

2 Divalproex sodium Anti-epilepsy

抗癲癇100

3 LidocaineLocal analgesic

局部麻醉50

4 AcarboseAntidiabetic

糖尿病400

5 LevetiracetamAnti-epilepsy

抗癲癇45

6 TemozolomideBrain cancer

腦癌100

7 MemantineAnti-dementia

老人癡呆18

Aggressive product filing in China


• All the filings in China are approved products in Taiwan

• For imported drugs, there are two applications needed – Clinical Trial Permit (“CTP”) submission goes first and then Imported Drug

License (“IDL”) submission is required once clinical/BE study is completed

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IMS

market size

(US$mn)


1 Not DisclosedCNS

抗癲癇US: 700

2Budesonide

ERGI 結腸潰瘍 US: 140

3Buprenorphine/

Naloxone

Addiction

戒毒US: 2,000

4 LenalidomideMultiple

Myeloma

血癌US: 4,400

5 LP642Multiple

Myeloma

血癌EU: 990

6 MethotrexateChemo

癌症US: 300

7 Gefitinib

Non-small-cell

lung cancer;

Inhibitor

非小細胞肺癌

EU: 350

8 VinorelbineBreast cancer;

Chemo

乳癌EU: 130

READY TO ENJOY OPPORTUNITIES IN US & EU WITH HIGH VALUE PIPELINE

One of the very few non-Indian pharmaceuticals with growing export pipeline


NO BE

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PIV; sued

PIV; sued

PIV; sued

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IN 2016, EXCLUDING ONE-OFFS, WE BEGAN TO SEE SYNERGIES POST INTEGRATION

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4Q 2016 Financial Highlights

ACTUAL NORMALIZED QoQ YoY

Sales 1,479,356 1 1,479,356 +5.4% +4.6%

Gross Profit 794,694 794,694 -1.5% -6.5%

Gross Margin 53.7% 53.7%

Operating Profit -187209 209,566 2 +112.4% +66.7%

Operating Margin -12.7% 14.2%

Unit: NT$000

1. Quarterly consolidated sales adjusted: double counting and returned goods

2. Normalized operating profit: intangible assets impairment and impacts from re-shaping

pipeline adjusted

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70%+ OF THE LANDMINES CLEARED DURING 2016

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2016FY Financial Highlights

ACTUAL NORMALIZED YoY

Sales 5,902,566 5,902,566 +6.9%

Gross Profit 3,328,029 3,328,029 +3.1%

Gross Margin 56.4% 56.4%

Operating Profit 244,383 740,160 +64.9%

Operating Margin 4.1% 12.5%

Unit: NT$000

Identifying the landmines and where we stand now

CONTENT IMPACT REVERSIBLE

Portfolio & Pipeline Factoring in change in environment and market

opportunities, we terminated more than 5 R&D

projects and streamlined more than 2 existing

products

NTD 260mn

Other Intangible Assets To maintain a conservative P&L and B/S, we

impaired certain intangible assets in compliance

with Korean regulations

NTD 236mn Yes

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BALANCE SHEET AT JUNE-30 2017

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