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LOTUS PHARMACEUTICALBUILDING A REGIONAL LEADER
March 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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COMPANY OVERVIEW
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LOTUS PHARMACEUTICAL IS AN APAC GENERICS LEADER
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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
Went public in 2010
Lotus Pharmaceutical (1795. TWO) has been listed on Taiwan OTC Stock
Exchange since 2010
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
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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;
8 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
15%
22%
22%
41%
Lotus Taiwan EmployeesTotal: 339
G&A
R&D
S&M
Plant
9%8%
51%
32%
Alvogen Korea Employees Total: 573
G&A
R&D
S&M
Plant
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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
• Shipments of ANDA
approved drugs start
• 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
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Profitable
Growth
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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
STRONGEST PORTFOLIO SURROUNDING 5 SPECIALTY AREAS
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Note: Others include respiratory system, pain killers, nephrology, anti-inflammatory and so on
2016E therapeutic area revenue breakdown
2016E
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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
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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
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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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HIGH VALUE PIPELINE FUELS REVENUE AND PROFITABILITY GROWTH
Export timeline from now – 2020 FDA 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
Levonogestrel 0.75mg Contraceptive
避孕
Calcium Acetate
667mg
Nephrology
洗腎
Not disclosed Anti-epilepsy
抗癲癇
Budesonide ER GI
結腸潰瘍
Buprenophine/
Naloxone
Addiction
戒毒
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Export timeline from now – 2020 FDA approval out-license shipment
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INN Indication 1H’16 2H’16 1H’17 2H’17 2018 2019 2020
Not Disclosed Chemo
癌症
GefitinibNon-small-cell lung
cancer; Inhibitor
非小細胞肺癌
Vinorelbine
softgel capsule
Breast cancer;
Chemo
乳癌
Acarbose Antidiabetic
糖尿病
Not Disclosed Multiple
Myeloma
血癌
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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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