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LOTUS PHARMACEUTICALBUILDING A REGIONAL LEADER

May 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

1Q 2017 Financial Results

Recent Developments

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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

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

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;

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

13%

20%

22%

45%

Lotus Taiwan EmployeesTotal: 356

G&A

R&D

S&M

Plant

9%7%

52%

32%

Alvogen Korea Employees Total: 568

G&A

R&D

S&M

Plant

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

41.7%

26%

12%12% 10%

12% 10% 14%16%

8.9%

10%

4%4% 7%

7%4%

4%6%

15.7%

6%

5.4% 6.8%11.4%

8.5% 10.4%12.9%

5.6%

-13.0%

5.6%Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

SM GA RD OPM

THE PAST 2 YEARS WERE TRANSITIONAL

Lotus underwent transitions in portfolio, pipeline, 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%

20%

12% 12%

6%

5% 8%

FY2014 FY2015 FY2016

52%

3,084

66%

982

42%

592

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WE WILL CONTINUE TO EXPAND REVENUE AND GROSS MARGIN

Revenue (NT$m) Gross margin

663

12941337

14171473

1425

1594

14041479

1436

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

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43%

58% 57%

62%

58%

55%

59%57%

54%

47%

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

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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

• 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

Geared Up For The Future

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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

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

2016E 2020F

19%

17%

8%17%

7%

32%

2017Q1

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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;

Chemo

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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2017 1Q FINANCIAL RESULTS

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IN THE LAST QUARTER OF 2016, WE MANEUVERED THROUGH THE LAST TIDE

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Unit: NT$000 1Q 2017 % 4Q 2016 % 1Q 2016 % QoQ YoY

REVENUE $1,436,112 100 $1,479,356 100 $1,425,275 100 -2.9% +0.8%

COGS 763,716 53 684,622 46 645,875 45

GROSS PROFIT 672,396 47 794,694 54 779,400 55 -15.4% -13.7%

OPEX

S&M 366,801 26 617,449 26 425,923 30

G&A 146,902 10 131,610 11 142,142 10

R&D 78,262 6 232,844 5 63,023 4

Total OPEX 591,965 42 981,903 66 631,088 44 -39.7% -6.2%

OPERATING PROFIT (LOSS) 80,431 5 (187,209) (13) 148,312 10 - -45.8%

NON-OP INCOME & EXP

Finance costs (61,139) (4) (67,313) (5) (69,265) (5)

Others (87,189) (6) 15,954 1 38,781 3

Total non-op expenses, net (148,328) (10) (51,359) (3) (30,484) (2)

INCOME BEFORE TAX (67,897) (5) (238,568) (16) 117,828 8

INCOME TAX EXPENSE

(BENEFIT)

(5,806) - (20,853) (1) (27,258) (2)

NET ERANINGS (LOSS) (73,703) (5) (217,715) (15) 90,570 6 +66.1% -

EPS $(0.30) $(0.77) $0.27 +61.0% -

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RECENT DEVELOPMENTS

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DIVESTING TRAZODONE GIVES THE OLD PRODUCT NEW LIFE

• Our oldest product in China

• Experiencing downward trend in a growing market

• Facing local competition

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Trazodone has been…

Lotus will...

• Benefit from increasing orders of Trazodone as a CMO since the new product owner

knows local market better

• Reinvest in other products for China market with the milestone fee received

• Continue to explore out-licensing/divestment opportunities to maximize product value

Lotus divested its flagship anti-depression (CNS) product Trazodone in China by

selling its full commercial rights in China to a leading Chinese pharma company

JAN 2017

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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

• 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

APR2017