Page I 1

LOTUS PHARMACEUTICALBUILDING A REGIONAL LEADER

August 2018

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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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Page I 3

Table of Contents

Page I 3

Company Overview

2Q 2018 Financial/Operational Results

Profitable Growth Strategy

Key Assets Update

Page I 4Page I 4

COMPANY OVERVIEW

Page I 5

LOTUS PHARMACEUTICAL IS AN APAC GENERICS LEADER

1

Page I 5

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

Page I 6

70+ Generic products in pipeline

2 Biosimilar products in pipeline (mab’s)

8 MAs in the US; 26 MAs in Europe;

9 MAs in Japan; 1 MA in China

A FAST GROWING GENERICS & SPECIALTY PHARMACEUTICAL POWERHOUSE

Lotus facts

Page I 6

1000+ Employees

3 Manufacturing and R&D Centers

300+ Marketed products

150+ Submissions since 2012

11%

19%

23%

47%

Lotus Taiwan EmployeesTotal: 386

G&A

R&D

S&M

Plant

10%

8%

48%

34%

Alvogen Korea Employees Total: 536

G&A

R&D

S&M

Plant

Page I 7

2015-2016

POST MERGERINTEGRATIONPHASE

2017-2018

INITIALGROWTHPHASE

2019～

EXPLOSIVEGROWTHPHASE

LOTUS SEES TANGIBLE PROGRESS TOWARD TRANSFORMATION

Page I 7

• Upgrade Nantou plant

• Change management team

• Reshape Portfolio and

pipeline

• Adjust sales and marketing

strategy

• Resolve legacy issues

• Build key franchises in each

APAC market

• Focus on specialty driven

markets

• Continue to increase

operational efficiency

• US and EU export revenues to

significantly grow

• High value products and

economies of scale to drive up

gross margin

• Strengthen balance sheet

• Invest in key franchises and

become category leader

• More aggressive CAPEX plan

Page I 8

WE STABILIZED IN 2017 AND HAS LAID A SOLID GROWTH GROUND

8

-1000

0

1000

2000

3000

4000

5000

6000

7000

2014 2015 2016 2017

4 Year Trend (NT$mn)

Rev. Gross Profit Operating Profit

50%

59% 56% 48%

-19%

8% 4% 8%

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1H 2018 FINANCIAL/OPERATIONAL

RESULTS

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GM RECOVERED, ASSET SHUFFLING AND WIP BENEFIT PLAN HURT NET MARGIN

Page I 10

Unit: NT$000 2Q 2018 % 2Q 2017 % 1Q 2018 % QoQ YoY

REVENUE $1,635,282 100 $1,577,430 100 $1,489,784 100 9.77% 3.67%

COGS 852,397 52 829,640 53 806,504 54 5.69% 2.74%

GROSS PROFIT 782,885 48 747,790 47 683,280 46 14.58% 4.69%

OPEX

S&M 444,393 27 350,393 22 360,328 25 23.33% 26.83%

G&A 165,305 10 160,021 10 165,889 11 -0.35% 3.30%

R&D 73,185 5 69,653 5 88,062 6 -16.89% 5.07%

Total OPEX 682,883 42 580,067 37 614,279 42 11.17% 17.72%

INCOME FROM OPERATIONS 100,002 6 167,723 11 69,001 4 44.93% -40.38%

NON-OP INCOME & EXP

Finance costs -81,694 -5 -63,341 -4 -70,778 -5 15.42% 28.97%

Others -27,453 -2 1,774 0 20,610 2 -233.2% -1647.52%

Total non-op expenses, net -109,147 -7 -61,567 -4 -50,168 -3 117.56% 77.28%

INCOME BEFORE TAX -9,145 -1 106,156 7 18,833 1 NA NA

INCOME TAX EXPENSE

(BENEFIT)39,652 -2 48,632 -3 -6,149 1 NA NA

NET ERANINGS (LOSS) -48,797 -3 57,524 4 24,982 1 NA NA

EPS -$0.23 $0.15 $0.07 NA NA

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ADJUSTED NET PROFIT WAS ACTUALLY BETTER THAN 2Q 2017

Page I 11

• GP WIP KR RPP impact from operators (–NT$ 17mn)

• OPEX

1. Higher S&M from WIP KR RPP impact (-NT$ 63mn)

2. Higher R&D from WIP KR RPP impact (-NT$ 4mn)

3. Higher G&A from WIP KR RPP impact (-NT$ 7mn)

• Non-Op early debt repayment amortization fee (- NT$ 21mn) in Korea

Adjustment Items:

Page I 12

• GP + NT$ 52mn from higher sales and product mix

• OPEX:

1. Higher S&M from increased marketing in Taiwan for Aclasta

2. Disciplined R&D spending irrespective of growing pipeline

3. Lower actual G&A from decreased spending base

STRONG OPERATIONAL RESULTS FROM HIGH SEASON AND REDUCED SPENDING

NT$mn

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ON TRACK OF BUILDING KEY FRANCHISES IN EACH APAC MARKET

Page I 13

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

1 Goserelin (Zoladex) Breast cancer 乳癌 274.4 +6%Exclusive marketing alliance with

AstraZeneca KR; launched Oct’16

2 Rosuvastatin/EzetimibeCardiovascular

降血脂與膽固醇261.0 +106% Dosage improved to 1/day

3 Sarpogrelate Anticoagulant 抗凝血 255.8 +31% FDC; launched in 1Q16

4 Calcium Polystyrene Sulfonate Nephrology 腎臟病 159.6 -8%

5 Seroquel (Quetiapine) Schizophrenia 精神分裂症 143.2 -7%Exclusive marketing alliance with

AstraZeneca KR; launched Oct’15

6 Desogestrel/EE (Mercilon)Oral contraceptive

口服避孕藥132.6 +5%

Acquired from Bayer; launched in

May’16

7 Bicalutamide Prostate cancer 攝護腺癌 104.3 -5%Exclusive marketing alliance with

AstraZeneca KR; launched Oct’16

8 Phentermine Anti-obesity 減肥 101.0 -20%

9 Anastrozole (Arimidex) Oncology 癌症 95.5 +2%Exclusive marketing alliance with

AstraZeneca KR; launched 4Q’16

10 Phendimentrazine Anti-obesity 抑制食慾 81.2 -15%

11 Zoledronic Acid (Aclasta) Osteoporosis 骨質疏鬆症 81.1 +12%Acquired from Novartis; launched

Apr’17; TW product

12 Orlistat Anti-obesity 減肥 70.8 -4%

13 Methylprednisolone Anti-infection 抗感染 46.7 +42% Tender driven

14 Trazodone Anti-depression 憂鬱症 40.9 +49% CN product

15 Benzonatate Oral Cough Suppressant 止咳 38.1 +30% TW product

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FRANCHISE SOLIDIFICATION CONTINUES TO HELP P&L AND CF

Page I 14

Key Performance Indicator I: More diversified geographically

We will keep improving commercial performance by solidifying franchise leadership to maximize

revenue growth and cash flow

2016

2017

1H2018

85.4%

80.6%

82.7%

7.8%

10.3%

11.5%

2.6%

6.5%

2.9%

4.0%

2.6%

2.9%

Korea Taiwan Export (milestone + shipment) India

Key Performance Indicator II: Back on cash-generating track

Unit: NT$mn

13%

26%

21% 21%

12%

7%

14%

0%

5%

10%

15%

20%

25%

30%

0

100

200

300

400

500

600

700

800

1H15 2H15 1H16 2H16 1H17 2H17 1H18

Net cash generated from operation

of total sales

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LATE PHASE

Vinorelbine softgel capsules for Europe

LP149 ROW

SUBMISSIONS

Methotrexate for US

Gefitinib for Europe

Lenalidomide for US and ROW

LAUNCHESTemozolomide for US, Europe and APAC

Levetiracetam ER & IR for US

Calcium Acetate for US

LAUNCH PREPERATIONS

Norethisterone／Ethinylestradiol LD for JP

TS-1 for KR

INCREASING PRESENCE IN FIRST WAVE FILING SUGGESTS STRONG R&D POWER

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2017 Deliverables

6 submissions for US and Europe markets in 2017

15+ # total active R&D projects

~85% % of R&D projects launching between 2018 – 2021

Acarbose for China

2018 Progress

LP173 for Europe

Levonorgestrel (US), Paricalcitol (US), Lenalidomide

(EU), Gefitinib (EU), Vinorelbine (EU)

LP149 for US

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PROFITABLE GROWTH

IN A RAPIDLY CHANGING ENVIRONMENT, WHAT MAKES US DIFFERENT 17

ENVIRONMENT

• Shifting demographics

• Political and regulatory

volatility

• High impact therapies for

high demand patients

RESOURCES WE EMPLOY

• Strong collaborations and

partnerships

• Plant and equipment

• Talented employees and

Alvogen culture

HOW WE STAND OUT

• Commitment to internal and

external innovation

• Strong franchises that

enable leadership

• Relentless focus on unmet

medical needs

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OUR GOAL FROM NOW TILL 2020– GROWTH, MARKET SHARE, REINVESTMENT

Back to Basics

Value Differentiation

Geared Up For The Future

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Profitable

Growth

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BACK TO BASICS

• Strong Portfolio

• Best Service

• Best Quality

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ONLY VERY FEW SELECTED CATEGORIES WILL GROW, AND WE ARE THERE

Page I 20

As a fast follower, what does innovators’ trend tell us?

• Oncology drugs are dominating US approvals

• Small molecule oral solid dosage is the most brutal market now

• Small volume, high ASP is a must-play for pharma

24

8

2

6

8

10

11

9

19

59

16

9

14

18

13

13

10

16

Cancer

Diabetes

Respiratory

Infections viral

Other infections

Cardiovascular

Genetic

Immunology

CNS/Pain

2012-2017 2007-2011

‘17 TAM +21% YoY

US FDA new drug approval trend

Therapeutic Area 2016-2021 CAGR

Oncology 9-12%

Antidiabetics (CVS) 8-11%

Autoimmune Diseases

11-14%

Pain (CNS) 2-5%

Cardiovascular 0-3%

Mental Health (CNS) 1-2%

IMS global medicines outlook

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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

• Planning for China CFDA

inspection

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WE CAN NOT AFFORD TO GO AFTER GENERAL GENERICS ANYMORE

Page I 22

2016A to 2020F therapeutic area revenue breakdown

18%

19%

9%16%

8%

30%

2017A

What is our portfolio strategy?

• Complex products

• High-barrier oncology products

• OTC and lifestyle products

• Local/regional partnerships and big pharma tail-end brands

15%

24%

10%16%

8%

27% Anti-obesity

CVS

CNS

Oncology

Women health

Others

1H 2018

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LOTUS PHARMACEUTICAL PROVIDES BEST SERVICE IN EVERY ASPECT

1

Page I 23

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

Page I 24Page I 24

VALUE DIFFERENTIATION

• Short Time to Market

• High Value Pipeline

• Leader in Special Dosage

Page I 25

TIME TO MARKET IS ESSENTIAL AS MARKET SENTIMENT CHANGES

FDA is pro-active on

• Guidance on complex generics

• A basket of products without generics

• Prioritize FTM generics

Page I 25

Increased competitions amid generics market, yet FTM is always favored

Source: FDA

Page I 26

Generic Name Indication

IMS

market size

(US$mn)

Formulation BE & CT Submission Approval

1Budesonide

ERGI 結腸潰瘍 US: 200 2019

2Buprenorphine/

Naloxone

Addiction

戒毒US: 2,000

4Q2018 –

1Q2019

3 MethotrexateChemo

癌症US: 340 2H2019

4 Gefitinib

Non-small-cell

lung cancer;

Inhibitor

非小細胞肺癌

Global: 375 2H2018

5 LenalidomideMultiple

Myeloma

血癌

Global:

9,700

ROW Approved

US 2020 - 2021

6 VinorelbineBreast cancer;

Chemo

乳癌EU: 130 2019

7 LP650GIST; inhibitor腸胃道間質腫瘤

EU & APAC:

6092020

8 LP149 ROWWomen health;

女性保健EU& APAC:

1102019

THE EMERGING NON-INDIAN PHARMA WITH FIRST WAVE PURSUIT GLOBALLY

To be launched in 2018 - 2021

NO BE

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PIV; non-infringement, CRL

PIV; non-infringement

PIV; sued in US; US technical review done

CRL

Focusing high value innovation for patients and customers

NO BE

Page I 27

Generic

NameIndication

IMS

market size

(US$mn)

Formulation BE & CT Submission Approval

9 LP173

Late stage

onco for soft

tissues

sarcoma +

renal cell

carcinoma

腎癌、上皮細胞癌、軟組織

肉瘤（皆非一線）

Global: 792 2021

10 LP337

Late stage

hepatocellular

carcinoma,

renal cell

carcinoma,

thyroid

carcinoma

晚期肝細胞癌、晚期腎癌、分化型甲狀腺癌（皆非一線）

EU & APAC:

4702022

11 LP149 USWomen health;

女性保健FTF 2023

To be launched in 2021 - 2024

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200mg

400mg

Page I 28

Generic Name Indication

IMS

Market Size

(US$mn)

Formulation BE & CT Submission Approval

1 AK-R214 (SR)Smoking Cessation

戒菸37

2Bazedoxifene

HCL (FDC)

Osteoporosis

骨質疏鬆18

3Bazedoxifene

(FTF)

Osteoporosis

骨質疏鬆8

4AK-R309

(FTF)

OAB

膀胱過動症24

THE LEADING SPECIALTY IMD DEVELOPER IN KOREA CONTINUES TO AIM HIGH

To be launched in 2018 - 2020

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IMD in Korea is similar to US 505b2 filing path with much condensed development and regulatory time

Page I 29

LOTUS PHARMACEUTICAL IS THE REGIONAL LEADER IN SPECIAL DOSAGE

Soft Gel Manufacturing

• Safety, efficacy, bioavailability and solubility issues dominated

as the most significant factors in developing drug formulations

• According to BCS classification, ~70% of new chemical

entities (NCE) are class 2 or 4

• Lotus is the regional expert in delivering low-dose cytotoxic

and potent APIs as it can ensure dose uniformity, which is a

challenge with traditional tablet manufacturing and powder

capsulation processes

• Investment in dedicated manufacturing area starting 2009 and

current capacity at 500mn capsules / year

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SUMMARIZING “SPECIALTY” GENERICS OF OUR PIPELINE TO FIND VALUE 30

Molecule Exclusivity Status Forum & Success Rate How Not To Infringe

Orphan Drug: 7Y Delaware Seek IPR invalidation

Average NCE: 3Y New Jersey Polymorphic form redesign

Pediatric: N+6M Texas Composition redesign

Not NCE: None Label carve-out

• We focus on BCS Class 2 & 3 projects which

entail complicated in-vivo bioavailability and

bioequivalence studies

• We deploy softgel as a platform for BCS Class

2 & 4 projects

Small volume, High value Complex Molecules

Potential high market share from Complex IP Landscape

BY THE NUMBERS: WE BALANCE OUR RISK AND REWARD FOR STAKEHOLDERS

Page I 31

7%

63%

25%

5%

BCS Class 1

BCS Class 2

BCS Class 3

BCS Class 4

Complex Molecules

20%

20%

20%

20%

20%

No patent dispute, non505b2

Non NCE patentchallenge

NCE-1 PIV

Orphan drug exclusivity

505b2

Complex IP Landscape

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GEARED UP FOR THE FUTURE

• Emerging headway in the China storm

• Biosimilar Ready

• M&A Mode Always On

Page I 33Page I 33

9 molecules in discussion

WE ARE MAKING GOOD PROGRESS IN THIS MARKET WITH RISING QUALITY AWARENESS

01BE study data integrity, tax reform, two-invoice system, and recent vaccine and API

scandal have led to increasing portfolio acquisition activities in China

02We have set up BD and regulatory teams in China in 2017 and identified several

molecules for potential partnerships with Chinese CSO and pharmaceuticals

03Expect to launch ~2 significant products in China before 2020 in addition to at least 3

new submissions to take advantage of climate change

3+ partners in DD phase

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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

Page I 34

• 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

Biosimilars reach 50% of

protein/big molecule market (~50%

of)US$33.7bn

Page I 35

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

Page I 35

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

Page I 36Page I 36

KEY ASSETS UPDATE

Page I 37Page I 37

gSuboxone film(Buprenorphine/Naloxone)

Page I 38

BUP/NAL HAS ALL IT TAKES TO BE A TRANSFORMATIVE OPPORTUNITY

Page I 38

Clear Unmet

Medical Needs

Solution

Market

IPRegulatory

Medicaid Coverage

• Opioid addiction is increasing among Americans, with addiction to heroin, fentanyl, and

prescription painkillers such as Oxycodone, Codeine and Hydrocodone

• >40,000 Americans die every year because of OUD, growing at a CAGR of ~25% since 2015,

and that’s >300 times higher than flu deaths in the US

• Sales of Zubsolv and Bunavail proved that 505b2 failed to be the affordable alternative

Source: Medicaid and Kaiser Family Foundation

Page I 39

AND US GOVERNMENT IS FUNDING THIS TREATMENT

Buprenorphine Assisted Medication (BAT) leadership and Medicaid coverage are key

• Currently all states sponsor BAT, 66% sponsors Methadone, and >50% of states started to

include Naloxone in Medicaid program

• In 2016, average treatment payment is 77% out-of-pocket and 23% covered by Medicaid

• The House passed several bills regarding the Substance Use Disorder Prevention that Promotes

Opioid Recovery and Treatment (SUPPORT) Act, The Senate has approved the Helping to End

Addiction and Lessen (HEAL) Substance Use Disorders Act which will go live by 2H2018

Page I 39Source: Medicaid and Kaiser Family Foundation

Page I 40Page I 40

WE CLEARED MOST OF THE IP AND REGULATORY HURDLES

Only 2 generics shortlisted

Sept. ‘17: non-infringement of DRDBrand filed patent ‘454 (OB, composition patent, exp. 2029)Oct. ’17: Teva received FDA tentative approval but FTF 180 day exclusivity should be either lapsed or forfeited – TBC by FDA

2017

Suboxone film’s first year

FDA ok’d Indivior’s suboxone filmKey patents were ‘150 (exp. 2023), ‘514 (process patent, exp. 2024) and ‘497 (composition patent, exp. 2022)

2010

30 month stay expired, non-infringement on 3 patents, only 2 generics in the game

PIV filers sued

TEVA/Par, Mylan, DRD, Alvogen/Lotus, Sandoz

TEVA/Par and Mylan settled; Sandoz dropped

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ALVOGEN/LOTUS WILL BE AMONG 1ST WAVE TO ENJOY MARKET

TEVA and Par (FTF) enters market

2024

Mylan enters market

20232018

Mar. ’18: non-infringement of Alovgen/Lotus

Regulatory wise, Alvogen/Lotus responded to FDA questions in 2Q’17 and now expects to hear back by end of 2Q’18; FDA TAD for DRD should be similar

Brand filed patent ‘221 (OB, composition patent, exp. 2022) and patent ‘305 (filing OB listing)

“At risk” launch now possible

Up to 5 years of good margin and limited

competition

Page I 42Page I 42

Dr Reddy’s

(Current FTM)

Indivior

(innovator)

• New gen Sublocade

injection only achieved

1/10 of company estimates

• Sublocade is under REMS

control and can only be

prescribed at specialty

pharma and administered

in health centers Medicaid

works with

• This has led to a 27 to 60

days prescription journey,

36% dispense conversion

rate, and 27% YoY

increase in SG&A

IP & REGULATORY LANDSCAPE OF OUR COMPETITORS AND US:

WHAT HAPPENED SINCE JUNE

42

WHY ARE WE CONFIDENT?

• FDA approval in June

(along with partial strength

approval of Mylan’s); RDY

launch at risk = 4.7%

market share

• Indivior filed TRO and PI

was accepted then granted

in July; Dr. Reddy’s stay of

PI rejected; Federal Circuit

Court expedited Dr

Reddy’s PI appealing for

first week of Oct

• Indivior posted a bond of

US$1.27mn per day

Source: IR material of Indivior and Dr. Reddy’s

Page I 43Page I 43

gRevlimid (Lenalidomide)

Page I 44

LENALIDOMIDE: AN OPPORTUNITY TOO CRITICAL TO MISS

44

Lotus invested early in the development of this product, starting from its 1st gen Thalidomide

Lotus Nantou site is nicely equipped with cytotoxic manufacturing facilities for this product

Company will begin to benefit from early launches in APAC and CEE as early as 4Q 2018

Lotus is actively building IP case and REMS program for Lenalidomide in the, targeting first wave launch

Lotus received approval in Taiwan and EU within 12 months post-submission, and US FDA confirmed finalization of technical review in June 2018, signaling high quality of the dossier

Alvogen/Lotus targets to be the first wave generics globally

Page I 45

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

Page I 46Page I 46

APPENDIX

Page I 46

Page I 47

BALANCE SHEET ENDING JUNE 30TH 2018

Page I 47

Unit: NT$MN JUNE-30-2018 JUNE-30-2017CURRENT ASSETS

Cash & cash equivalents 2,022 13% 2,041 13%Notes and trade receivables, net 1,248 8% 1,148 8%Other receivables 7 0% 9 0%Other receivables from related parties 66 0% 10 0%Inventories 856 6% 985 6%Other current assets 115 1% 113 1%

4,314 28% 4,306 28%NON-CURRENT ASSETS

PP&E 1,864 12% 1,902 12%Goodwill & other intangibles 8,374 53% 8,458 54%Deferred tax assets 470 3% 433 3%Other non-current assets 613 4% 543 3%

11,321 72% 11,336 72%TOTAL ASSETS 15,635 100% 15,642 100%LIABILITIES & EQUITYCURRENT LIABILITIES

Loans & borrowings 310 2% 310 2%Notes and payables 783 5% 740 5%Other payables to related parties 114 1% 45 0%Current portion of long-term borrowings 704 5% 0 0%Other current liabilities 373 2% 577 4%

2,284 15% 1,672 11%NON-CURRENT LIABILITIES

LT Borrowings, net of current portion 2,257 14% 4,320 28%Loan payables to related parties - non-current 2,547 16% 822 5%Other non-current liabilities 996 6% 941 6%

5,800 37% 6,083 39%TOTAL LIABILITIES 8,084 52% 7,755 50%

EQUITY

Total equity attributable to owners of the company 7,133 45% 7,225 46%

Non-controlling interests 418 3% 661 4%Total equity 7,551 48% 7,886 50%

TOTAL LIABILITIES & EQUITY 15,635 100% 15,641 100%