MOVING WITH THE TIMES™: A NEW GENERATION JOINT HEALTH SOLUTION

FOR TODAY’S CONSUMER

AGENDA

1. Lonza Overview

2. Active Aging Market & Consumer Demand

• Consumer Insights & Benefits

• Joint Health Category Opportunity

3. UC-II®

• What is UC-II®?

• Science - Clinical & Animal Research

• Mechanism of Action

• Addressing the needs of the consumer

4. Q&A

2UC-II® | November, 2019

• We are a Swiss based company and leading supplier to the Pharmaceutical, Biotech & Specialty Ingredient Markets

• The Consumer Health & Nutrition (CHN) Business Unit is a global leader across health, nutrition, pet, food and

beverage industries

• Ingredients backed by clinical research to support claims

• Extensive formulation know-how and leading capsule and encapsulation technologies

• Global manufacturing and processing capabilities

3

AT-A-GLANCE

CONSUMER HEALTH & NUTRITION

We create unique, innovative and consumer preferred solutions

for Consumer Health and Nutrition companies.

By the Numbers:

• 15 production sites in 10 countries (9 capsule sites and 6 ingredients sites)

• Partner with more than 5,000 customers around the world

• Ingredients: over 50 patent families

• Capsules and Dosage forms: over 50 patent families

UC-II® | November, 2019

BY 2050

22%of the world's population will be

aged 60 years or older, which is a

rise from 12% in 2015

LONGER LIFESPANS

MAKE HEALTH AND WELLNESS MORE RELEVANT

• Preparing oneself for a longer, healthier lifespan is particularly

relevant as consumers view health and wellness as a holistic,

proactive and ongoing pursuit.

• Food and drink products can help people of all ages improve

their bone, joint and brain health as well as proactively

address other age-related health concerns.

Read on mintel.com

STAYING MOBILE AND FIT IS A TOP FOCUS FOR MANY SENIORS

Base: 500 US internet users aged 65+

Source: Lightspeed/MintelRead on mintel.com

68

62

55

42

30

28

Eating healthy

Getting exercise

Maintaining/improving mobility

Quality of sleep

Treating a chronic illness

Mental wellbeing

US: health focuses of consumers aged 65+, August 2017

Design products to help seniors stay mobile and active, especially as exercise and mobility, are important

health focuses for US consumers aged 65+.

• Target older UK

consumers with bone

and joint health

supplements. In the UK,

older consumers are

more likely to take

health supplements for

bone/joint health than

younger consumers.

• Make supplements

more appealing for

younger consumers by

pairing with functional

benefits, such as

immunity or

appearance.

EDUCATE OLDER UK CONSUMERS WHO ARE INTERESTED IN BONE AND

JOINT HEALTH SUPPLEMENT ABOUT COLLAGEN

Base: 1,153 UK internet users aged 16+ who have taken vitamins, minerals or dietary supplements in the last 12 months

Source: Lightspeed/MintelRead on mintel.com

60

54

61

65

71

23

26

33

42

59

31

3634

36

31

13 14

11 11

1416 15 15

64

16-24 25-34 35-44 45-54 55+

UK: Reasons for taking vitamins/supplements, by age, July 2017

General health Bone and joint health Immune system Cardiovascular system Appearance

In addition to collagen, other common ingredients found in joint health supplements include methylsulfonylmethane (MSM),

omega-3s, curcumin, chondroitin, glucosamine, and vitamins C, D, B2, B7 & B9.

COMMON INGREDIENTS IN JOINT HEALTH SUPPLEMENTS

^includes all children ingredients

*Note: joint health supplements are defined as supplements with the word joint or joints in the product description

Source: Mintel GNPDRead on mintel.com

0%

10%

20%

30%

40%

Vitam

in C

Chondro

itin

sulfate

Chole

calc

ifero

l (v

itam

in D

3)

Me

thyls

ulfonylm

eth

ane (

MS

M)

Glu

cosam

ine s

ulfate

Curc

um

in

Fis

h F

ats

^

Hya

luro

nic

acid

Om

ega 3

fatt

y a

cid

s^

Glu

cosam

ine h

ydro

chlo

rid

e

Rib

ofla

vin

(vitam

in B

2)

Hyd

roly

zed c

olla

gen

Type-I

I colla

gen

Fo

lic a

cid

(vitam

in B

9)

Bio

tin

(vitam

in B

7)

US: Percentage of launches with select ingredients in joint health supplements*, Mar 2014 - Feb 2019

Mar 2014 - Feb 2015

Mar 2018 - Feb 2019

NUTRITIONAL STRATEGIES IN JOINT HEALTH

8UC-II® | November, 2019

ANTI-

INFLAMMATORY

SUPPORT

Curcumin, Boswellia,

proteolytic enzymes,

SAMe, MSM, omega 3

fatty acids, Vit D,

anthocyanin

BUILDING

BLOCKS

Glucosamine

chondroitin, hyaluronic

acid, (standard)

collagen

ANTIOXIDANTS

& MICRO

NUTRIENTS:

Vit C, Mn, Cu, Se,

Vit D, Ca

WHAT IS UC-II® BRAND?

• Undenatured (native) type II collagen derived from chicken sternum cartilage

• Trademarked, patented, clinically studied ingredient for joint health

• Manufactured in USA under food GMP conditions

• Small dose (40 mg/once per day)

• Unique mechanism of action (Oral tolerance)

• Backed up by preclinical and clinical science

9

K. Kuhn, 1987, in R. Mayne and R. Burgeson, eds., Structure and Function of Collagen Types, Academic Press, p. 2

Vander Rest M et al. FASEB J., 1991, 5:2814.

Collagen triple helix

~ 300 nm

UC-II® | November, 2019

Collagen Products

Undenatured Denatured

GelatinCollagen hydrolysate

(Hydrolyzed collagen)

Preparation method• No heat

• No enzyme

• Gentle processing

• Partial hydrolysis

(heat)

• Harsh processing

• Complete hydrolysis

(heat + enzyme)

• Harsher processing

Triple helical structure • Retained • Disrupted • Disrupted

Structural

representation

Product form• Intact polypeptides

• Active epitopes

• Mixture of peptides and polypeptides

• No active epitopes

• Amino acids & small peptides

• No active epitopes

10

MAKING THE DIFFERENCE WITH UC-II® UNDENATURED TYPE II COLLAGEN

COMMERCIALLY AVAILABLE COLLAGEN PRODUCTS

UC-II® | November, 2019

UC-II® BRAND CLINICAL STUDIES

11UC-II® | November, 2019

* Lugo JP, et al. J Int Soc Sports Nutr. 2013;10:48.

** Lugo JP, et al. Nutr J. 2016;15:14.

*** Bagi CM, et al. Osteoarthritis Cartilage. 2017;25:2080.

UC-II® BRAND - HEALTHY SUBJECT STUDY, 2013

• UC-II® undenatured type II collagen

significantly increase average knee extension

compared to placebo

• UC-II® undenatured type II collagen appears

to be alleviating joint discomfort in healthy

subjects

• 17 week supplementation with UC-II®

undenatured type II collagen was well

tolerated

RANDOMIZED, DOUBLE-BLIND, PLACEBO-CONTROLLED STUDY

12UC-II® | November, 2019

Lugo et al., J Int Soc Sports Nutr. 2013;10:48

Total WOMAC Score Reduction

• UC-II® brand achieved statistical significance versus

placebo and GC

• GC failed to achieve significance versus placebo

13

RANDOMIZED, DOUBLE-BLIND, PLACEBO-CONTROLLED STUDY

UC-II® BRAND - 2016 OA STUDY

UC-II® | November, 2019

Lugo JP, et al. Nutr J. 2016;15:14.

Confidential

• UC-II® achieved statistical signifiance

versus placebo

• UC-II® achieved statistical signifiance

versus GC

• GC did not achieve statistical signifiance

versus placebo

• UC-II® is safe and effective

STUDY RESULTS (2017)

Research results show that UC-II®:

• Improve the mechanical function of the injured knee

• Maintain bone integrity of the knee joint

• Prevent joint cartilage deterioration over the course of

the study

14UC-II® | November, 2019

Bagi et al., Osteoarthritis Cartilage 2017; 25:2080-90

• Published force plate research in dogs and horses shows that UC-II® brand

contributes to joint comfort

• Use of UC-II® brand in joint health supplements for pets and companion animals

has demonstrated excellent benefits and market growth

• Outperformed GC in these studies

15

FIVE PUBLISHED STUDIES

UC-II® BRAND - DOG & HORSE STUDIES

UC-II® | November, 2019

Deparle, et al. J Vet Pharmacol Therap. 2005;28:385-390

Peal, et al. J Vet Pharmacol Therap. 2007;30:275-278

D’Altilio, et al. Toxicol Mech Methods. 2007;17:189-196

Gupta, et al. J Vet Pharmacol Therap. 2009;32:577-584

Gupta, et al. J Anim Physiol Anim Nutr. 2012;96:770-777

UC-II® Undenatured Type-II Collagen may trigger the rebuild of cartilage in your joints

16

THE PRINCIPLE OF “ORAL TOLERANCE”

UC-II® BRAND - PROPOSED MECHANISM OF ACTION

UC-II® | November, 2019

Daily activities, exercise, or

normal stress could lead to

joint and inflammation

Enzymes are upregulated to

remove cartilageUC-II® product triggers

anti-inflammatory cascade

17

POSSIBLE MECHANISM OF ACTION & ORAL TOLERANCE

UC-II® BRAND CONTAINING UNDENATURED TYPE II COLLAGEN

UC-II® | November, 2019

UC-II

TGF-β

IL-10

“One tiny pill per day”

18

JUST ONE TINY EASY TO SWALLOW CAPSULE DAILY

SUPERIOR CONVENIENCE

UC-II® | November, 2019

40mg UC-II® significantly

outperforms 1500mg Glucosamine

and 1200mg Chondroitine(Lugo et al. Nutr J. 2016;15:14)

• Science Backed UC-II® ingredient:

• May trigger natural rebuild of cartilage in your joints

during the joint repair cycle and daily activities,

exercise or normal stress

• Convenience product:

• 1 small clean label capsule a day

• Market proof formulation:

• Robust and tested formulation

• Includes Vit C, Vit D3, Manganese, Copper for

health claims on joint health

19

UC-II® FORMULATION TO MAINTAIN LIFE-TIME JOINT MOBILITY

UC-II® | November, 2019

Active aging people and sport people

20

A WIDE RANGE OF CONSUMERS WITH DIFFERENT NEEDS TO ADRESS

CONSUMERS – CATEGORY SEGMENTATION

UC-II® | November, 2019

SENIORYOUNG

PROFILE Athletes practicing activities

where the joints are strongly

solicited such as endurance

sports (trail, running), outdoor

and impact sport (tennis)

Young active seniors

(50-65) wanting to preserve

their bone capital, their

flexibility and their joint

well-being.

Seniors (65-90) wishing

to reduce joint pain and

preserve their mobility

PROBLEMjoints problems due to

physical activity level

joints problems

due to age – weight

Adjacent to bone health – muscle health

OBJECTIVES PERFORM ENJOY PRESERVE CARE

• UC-II® Portfolio addresses the needs of different consumer groups and their specific concerns to keep their mobility

• Convenient backed by science UC-II® formulations that support joint health claims

21

COMPLETE RANGE OF READY TO MARKET PRODUCTS

UC-II® MOVING WITH THE TIMESTM PORTFOLIO

UC-II® | 28 March, 2019

• High bioavailable formulations of plant based curcumin/boswellia known for their multiple exerts on inflammatory pathways

• High EPA / DHA containing omega3 oils

• UC-II® to trigger the rebuild of cartilage

22

SELECTION OF NATURAL SOLUTIONS TO ADDRESS JOINT INFLAMMATION

DEVELOPMENT OF UC-II® ANTI-INFLAMMATORY STRATEGIES

UC-II® | 28 March, 2019

23

TAKE-AWAYS

UC-II® | November, 2019

UC-II® brand is backed by science

and has shown in multiple published

studies to be effective

Significantly more effective than Glucosamine plus Chondroitin.

Unique mode of action(Oral tolerance)

Changing consumer landscape requires new solutions to address

mobility concerns

UC-II® 40mg daily dose can replace bulkier, less efficacious ingredients

for smaller serving size

Vcaps® Plus, DUOCAP™ and Licaps®

innovative dosage forms can be used to create synergetic formulations.

24Achieving Clean Labels for Food Supplements | August 2019

This document is an overview for professionals and must not be distributed as such to consumers. Recipient must ensure that final communications to the consumer on

food and food supplements products comply with the applicable health claims regulations in the regions / countries where the final products are marketed. Review and

follow all product safety instructions. The statements made in these materials have not been evaluated by the U.S. Food and Drug Administration or any other regulatory

authority. Lonza’s products are not intended for use to diagnose, treat, cure or prevent any disease. All information in this presentation relates to a product as an ingredient

and corresponds to Lonza’s knowledge on the subject at the date of publication, but Lonza makes no warranty as to its accuracy or completeness and Lonza assumes no

obligation to update it. All information in this presentation is intended for use by recipients experienced and knowledgeable in the field, who are capable of and responsible

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