Generic Yearbook

GPhA Conference Edition, February 2016 Table of Contents

1. Key Trends in the Generic Industry 2015-2016 4 2. M&A Activity in the Generic Industry 22 3. Approach to Ranking Generic Companies by Value 27 4. Ranking of the Top 75 Generic Companies with a U.S. Presence by Value 32 5. Ranking Global Top 100 Generic Companies by Value 35 6. Profiles of the Top Twenty Global Generic Companies by Value 41

Appendix: About Torreya Partners 67

This document was prepared by Torreya Partners for attendees of the GPhA conference. Underlying datasets and information are available for Torreya Insights customers (contact Suzanne Schultz at [email protected]) or reach out to Torreya Insights at 555 Madison Avenue, Suite 1202, New York, NY 10022. (212) 257-5801. www.torreyainsights.com © Torreya Partners, 2016

2 Preface

We at Torreya Partners are engaged in providing strategic advice to many companies in the global generic industry and have found ourselves again and again hampered by the lack of information on the players in the industry and a sense of overall trends shaping the sector. Thus, with our sister research company, Torreya Insights, we set out to compile a comprehensive global database of companies in the pharmaceutical industry which includes over 2,000 players involved in the generics sector. This database is fundamentally different than the widely used IMS prescription data because it approaches the industry at the company level rather than at the level. Our approach has inherent limitations because we are not able to parse aggregated company level data into country level information or information by therapeutic class. However, there are a number of advantages to our approach. First, prescription audit data misses substantial swaths of economic activity in the generics sector due to direct shipments to clinics and physicians and the way products enter the hospital distribution channel. Second, because companies report net revenues in their financials we are able to determine the economic value of shipments rather than just gross revenue amounts as are reported in IMS. This compendium of commentary, information, and data on the global generic pharmaceutical industry was compiled by Torreya Partners and its sister company Torreya Insights in the Fall of 2015 and builds on a global pharma database that Torreya has maintained since 2012. We are grateful to many individuals who helped us with the insights in this report and the underlying database used herein including: Bernard Berk, President, Nostrum Pharmaceuticals; Jonathan Berlent, Managing Director, Torreya Insights; Alexander Deardorff,Analyst, Torreya Insights; Benjamin Garrett, Executive Director, Torreya Partners; Kylor Hua, Associate, Torreya Partners; Nitin Lath, Managing Director, IDFC; Ketan Mehta, Chief Executive Officer, Tris Pharma; George Stephenson, Chief Executive Officer, Kremers-Urban Pharmaceuticals and Carl Whatley, Chief Executive Officer, Vitruvias Pharmaceuticals. All errors and omissions are our own and the information in this report, particularly that on private companies, may be inaccurate, dated or, at best, directional.

Allen Lefkowitz Tim Opler Vimal Vaderah Managing Director, Generics Partner, Pharma Analyst, Generics [email protected] [email protected] [email protected] +1 (917) 558-1477 +1 (212) 257-5802 +1 (212) 257-5822

3 1. Key Generic Industry Trends

4 Overview

he U.S. generic industry continued to experience dramatic growth in 2015 as the share of generic prescriptions approaches 90%, driven by Top Generic Pharmaceutical T an unprecedented set of recent expirations. Industry Acquisitions in 2015 This growth was accompanied by the rapid expansion of emerging players 1. Teva’s Acquisition of ’s such as Alvogen, Amneal, ANI Pharmaceuticals and ENDO. Foreign market Generic Business for $40 billion entrants such as Aurobindo, Dr. Reddy’s Laboratories, Huahai and Lupin also 2. ’s Acquisition of Hospira saw their share of the U.S. generic sector grow healthily in the last year. More for $16 billion than half of all pills sold in the now originate from a non-U.S. 3. ENDO’s Acquisition of Par based generic pharmaceutical company. Pharmaceuticals for $8 billion 2015:AYear of Consolidation 4. Concordia’s Acquisition of The U.S. generic industry continued to experience dramatic change and Amdipharm for $3.5 billion consolidation in 2015 as the largest incumbent firms expanded. Most notably, 5. Hikma’s Acquisition of Roxane Teva acquired the Allergan generic platform to position itself as an even Labs for $2.6 billion larger player in the sector. Pfizer, which has the world’s largest branded 6. Teva’s Acquisition of RIMSA for generic platform, termed Pfizer Established Products, alongside its substantial $2.3 billion Greenstone business, also took a significant step to bulk up with its $16 7. Lannett’s Acquisition of billion acquisition of Hospira. Other consolidators of non-branded generics Kremers-Urban for $1.2 billion and branded off-patent products continued to grow by acquisition. Most 8. Lupin’s Acquisition of Gavis for notably, ENDO International acquired Par Pharmaceuticals for $8 billion, $880 million adding substantial heft to an already large and growing business. In total, the 9. Bidvest’s Acquisition of Adcock top ten generic industry M&A deals of 2015 exceeded $75 billion in value, Ingram for $823 million making the year the most important for M&A in the short history of the 10. CVC’s Acquisition of Alvogen generic pharmaceutical industry.

5 Close to a Trillion Dollar Industry

Torreya Insights has analyzed over 2,000 generic pharmaceutical companies on a global basis, including both publicly-traded and Top Ten Generic Companies Worldwide privately-held companies. We define a generic company as one By Value ($ millions), Feb 16, 2016 whose primary revenues are either from INN generics or brands Rank Company Value that no longer have patent protection or market exclusivity. 1 Pfizer Established Pharma $84,621 Torreya then imputed valuations based on revenue multiples or 2 Teva Generics (including Allergan Gx) 70,301 EBITDA multiples for private companies. The implicit assumption is 3 Sandoz / 36,495 that the underlying factors driving valuations for private companies 4 30,035 are similar to the determinants for public companies. 5 CR Pharmaceutical 29,047 6 Yangtze River Pharma 28,185 With this valuation approach it then becomes possible to value all 7 28,170 known companies in the generic sector. 8 EMS 16,464 Interestingly, in January 2016, we saw the aggregate value of the 9 Abbott Established Pharma 14,582 generic sector on a global basis exceed $900 billion for the first 10 Hengrui 13,235 time. In particular, our real time estimate indicates that as of Rest of industry 578,056 February 16, 2016 the aggregate industry value was $929 billion. Total Industry Value $929,129 Just a decade ago, the aggregate value of the sector was under $150 billion, indicating that there has been massive sector growth in a short period of time. We would not be surprised to the sector run to over $1 trillion in value this year. We believe the generic pharma sector will experience extraordinary growth in the years ahead. While the share of generics in the U.S. is high, there is substantial room for growth elsewhere. And, there will be many opportunities to genericize more complicated products, including biologics, in the years ahead.

6 Figure 1. Value Share of Top Ten Companies

Pfizer Established Pharma 9%

Teva 8%

Sandoz 4%

Sun Pharma 3%

CR Pharmaceutical 3%

Yangtze River Pharma 3%

Rest of industry Mylan 62% 3%

EMS 2% Abbott 2% Hengrui 1%

This chart shows the enterprise value (or imputed value for private players) of each company as opposed to the total value of companies in the generic sector as of Feb 15, 2016.

7 Industry Remains Fragmented

Figure 1 on the previous page shows the share of the Perhaps with the exception of Teva and Pfizer, none of value pie held by the top ten companies. Several facts these firms are truly operating at global scale. about the generic sector are readily apparent. Pfizer is the World’s #1 Player Generic Sector is Not Concentrated Some observers might be surprised to see that Pfizer It is readily apparent that the generic pharmaceutical is the #1 global player in generics. In fact, Pfizer has segment is not highly concentrated. The value share of the world’s largest portfolio of off-patent brands the top ten firms is less than 40% and the largest (branded generics) in their GEP (Global Established company, Pfizer occupies only 9% of the value pie. Pharma) group. Pfizer’s U.S. non-branded generic A widely used measure of industry concentration and businesses (Greenstone and Hospira) are considerably competitiveness is the Herfindahl Index (HHI). We smaller. Notably, Pfizer’s GEP segment generates $12.5 compute that the global HHI Index as of February billion in cash flow before taxes whereas we project 2016 was 0.021, well below the U.S. DOJ threshold of that Teva will generate approximately $9 billion in 0.25 that demarcates a highly concentrated industry – total operating cash flows in 2016. We attribute where caution would be exercised by antitrust roughly $2.5 billion in cash flows to Teva’s on patent authorities on horizontal mergers. brands implying that post-Allergan their generic business generates roughly half of the cash flow of Few Players Have a Global Footprint Pfizer’s business.* What is also noteworthy in Figure 1 is that only a few Following the close of the Allergan merger, we expect of the top players in the generic sector are truly Pfizer will continue to aggressively build its portfolio global. Two companies (CR Pharma and Yangtze River) of branded and non-branded generic products on a are giants in their home country of China but have no substantial scale. Pfizer has a very real chance to meaningful presence elsewhere. Only Pfizer, Teva, increase its lead as the world’s top player in both Sandoz and Sun have a truly global presence. branded pharma and generics.The pattern of the last

* Pfizer has not provided guidance on GEP revenue and cash flow for 2016 so it is not possible to make an apples to apples comparison of the two businesses for this year.

8 Living in a Big Two World five years where four companies have been bunched together in the overall global pharma rankings (Pfizer, …the generic J&J, Roche, Novartis) will change with Pfizer as the lone leader in 2016. We doubt that other players will industry will live stand by idly; thus we believe that substantial in a “Big Two” incremental consolidation in the pharmaceutical industry will take place in 2016 and beyond. world for some The last year has obviously completely reshaped the time to come. generic pharmaceutical industry. In particular, the Teva / Allergan transaction has been Teva will further transform the global generics space transformational and has created a global player with through its best-in-class generics pipeline, R&D both horizontal and vertical economies of scale. Teva capabilities, operational network, supply chain, global has full API, formulation and marketing infrastructure commercial deployment and infrastructure to achieve on a global basis. Teva’s remaining areas of relative greater efficiencies across the healthcare system…” weakness are few. For example, the only major And, starting in 2012, Pfizer began to report segment markets where Teva is absent are China and a few data on its Global Established Pharmaceutical countries in Latin America. franchise. Pfizer writes in its 10K: “The GEP segment Teva’s communication in its press release regarding deals with products that have or are expected to lose the acquisition did not overstate the importance of market exclusivity through 2015 in most major the development: “The [Allergan generics] transaction markets. These also include the generic will create a leader in the INN and branded generics pharmaceuticals, sterile injectable products, and industry with an overall product portfolio that leads development portfolio.” The description is the industry in terms of differentiation and durability unmistakable. The GEP portfolio is generic by our and offers promising growth opportunities.The new definition: off patent branded or INN generics.

9 Recent Developments in the U.S. Market

The GEP segment has been shrinking since it was first Pricing to Remain an ImportantValue Driver broken out in 2012, as Pfizer’s key legacy brands have There are a number of notable trends. While we been experiencing generic incursion (e.g., Celebrex® / expect U.S. price increases to moderate in this Lipitor®). election year, we do not foresee any substantial scale We do not see how a #3 or #4 player can, in the near back of pricing on differentiated generic products. term, aggregate enough revenue to match either Pfizer There are, of course, areas in topicals and injectables or Teva in scale. where prices of generics are historically high. And we expect to see price increases take place selectively Sandoz would need to merge with one of the larger over time. And while approvals of complex generics Chinese domestic players, Sun Pharma and either a are speeding up, we do not expect substantial price Mylan or to become the #2 player. Given how reductions to take place in the near term for such unlikely this is, the generic industry will live in a “Big products. This is because there are many individual Two” world for some time to come. Interestingly, Sun where the competitive dynamics are not strong. is also close to Sandoz in value ($30bn value for Sun vs $36bn for Sandoz). Perhaps Sun will be the next The story for commoditized generics in the U.S. is company to design a strategy to challenge the Big Two. somewhat different. The arrival of sourcing groups in 2015 has had a major impact on pricing and results for While we count more than 70 companies with a U.S. companies like Lannett and Qualitest. Red Oak presence as of February 2016, the count is down as Sourcing, a JV of CVS and Cardinal Health, has driven numerous mid-sized and smaller companies were costs down for commoditized products by creating acquired in the 2013-2015 period. We expect this competition among generic players. One Stop, consolidation to continue apace in 2016. While new McKesson’s sourcing team, has also been an aggressive companies are coming online all the time, they are not player in driving price competition among generic building up revenue fast enough to replace the groups manufacturers in 2015. Sourcing groups will create that have ceased to be independent. additional downward price pressure in 2016 in competitive situations.

10 Regulatory Developments in the U.S. Market

Regulatory Factors With a persistent 42 month backlog, the FDA’s Janet The driving factor in ongoing drug shortages and Woodcock recently testified before Congress (Feb 4, pricing actions remains the FDA crackdown on 2016) that the Agency would continue to staff up to manufacturers in the U.S. and abroad (e.g., Bedford, work down the backlog. Hospira, Dr. Reddy’s, Wockhardt and many others). As Dr. Woodcock presented the chart that follows more facilities have received warning letters and 483’s (Figure 2) indicating that while the FDA has in the past several years, the availability of FDA- substantially ramped up its FTE count on ANDA certified CGMP facilities operating at reviews, the volume of ANDA filings has also risen scale has shrunk, particularly in injectables, liquids and dramatically, somewhat offsetting the benefits of topicals. This is true both in the manufacture of additional staff. formulations and in the manufacture of API. We have Under GDUFA, FDA has now pledged to improve increasingly seen shortages emerge of API, especially ANDA review times and has recently been meeting or in selected areas of steroids, opioids and cytotoxics. exceeding the goals laid out in Figure 3. GDUFA has the potential to significantly improve Dr. Woodcock testified before Congress on Feb 4 that industry prospects and raise prices but the ANDA “To date, the FDA has met or exceeded all backlog at the FDA remains unusually long and we performance goals outlined in the GDUFA hear repeated discussion of files that have been under Commitment Letter”. review for three years or more with no initial actions yet to be taken. Some companies have refiled The reality is more complex. Our industry contacts applications more recently in order to take advantage indicate that the FDA has made some progress in of the Agency’s pledge to deliver 18 month review catching up on the pre-2015 backlog but we have times on recently filed ANDAs. spoken to filers who have yet to even hear a first meaningful communication from the FDA.

Fig 2. Source: Janet Woodcock, Feb 4, 2016, “ Implementation of the Generic Drug User Fee Amendments of 2012 (GDUFA),” Testimony Before the House Comm on Oversight and Govt Reform.

11 Figure 2. FDA Generic Program FTE’s and ANDA Filings, 1990-2012

Generic Program Staff (FTE) Ceiling

1103

893 880 859 830 793 813 766

551 563

462 449 404 378 352 361 339 332 326 335 300 308 307

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Number of Applications

12 Figure 3. FDA ANDA Review Time Goals under GDUFA I

Goal FY2015 FY2016 FY2017

Original ANDA 60% in 15 months 75% in 15 months 90% in 10 months

Tier 1 first major amendment 60% in 10 months 75% in 10 months 90% in 10 months

Tier 1 minor amendments (1st – 60% in 3 months 75% in 3 months 90% in 3 months 3rd)

Tier 1 minor amendments (4th-5th) 60% in 6 months 75% in 6 months 90% in 6 months

Tier 2 amendments 60% in 12 months 75% in 12 months 90% in 12 months

Prior approval supplements 60% in 6 months 75% in 6 months 90% in 6 months

ANDA teleconference requests Close-out 200 Close-out 250 Close-out 300

Controlled correspondences 60% in 4 months 70% in 2 months 90% in 2 months

ANDA, amendment and PAS in backlog on Oct 1, 2012 Act on 90% by end of FY 2017

Source: Janet Woodcock, Feb 4, 2016, “ Implementation of the Generic Drug User Fee Amendments of 2012 (GDUFA),” Testimony Before the House Committee on Oversight and Govt Reform.

13 Figure 4. FDA ANDA Approvals, January 2014 to December 2015

Source: Janet Woodcock, Feb 4, 2016, “ Implementation of the Generic Drug User Fee Amendments of 2012 (GDUFA),” Testimony Before the House Committee on Oversight and Govt Reform.

14 Strategic Trends for 2016 – Continued Consolidation

Recent Channel Consolidation

Further, we have heard persistent complaints that the We are optimistic that FDA approvals will continue to FDA has substantially increased the frequency of accelerate with added resources and recent Refuse to File (RTF) Letters – rejecting ANDA reductions in filing volumes. applications that do not follow CFR filing rules, such This changing regulatory picture will obviously impact as formatting of ANDA’s and completed Tables of pricing for many products, ultimately benefitting Contents. consumers while making life more difficult for some But, despite the complaints, there is no doubt that companies. substantial progress has been made. As illustrated in We see a number of key strategic trends playing out Figure 4, the pace of ANDA approvals is up in 2016 in the global generic sector.These are: dramatically in the last six months.

15 Strategic Trends for 2016 – Technology Emphasis and Globalization

Trend 1. Continued Consolidation The economic case for consolidation in the U.S. generic sector is strong. As noted by Teva in their investor presentation following the Allergan Generics acquisition (see chart on previous page), there has been dramatic consolidation on the distribution and side of the business. The effect of this consolidation is to advantage larger players who have more leverage in discussions of pricing and supply with wholesalers, retailers and PBMs. Teva, for example, saw the market share of its top 3 customers grow from 52% in 2009 to 83% in 2013. We expect to see continued consolidation among generic players, particularly among companies that are in the more commoditized product categories. We At Least Three Companies Have Made a Major Investment further expect to see added vertical integration. in PLGA Microsophere Technology for Complex Injectibles Trend 2. Continued Focus onTechnologies produce sophisticated PLGA microspheres. This is An important, if not widely heralded trend in recent true for blockbusters like Risperdal Consta® and for years, has been the emergence of more technological other less widely used products. sophistication in formulation among generic companies. We have seen Amneal, Dr. Reddy’s and Lupin, for This is seen, for example in the microsphere area. example, make major investments in this area. Lupin Companies needing to introduce generics against the acquired Nanomi B.V., a technology company Alkermes / J&J depot products will need to be able to specializing in monosphere’s and complex

16 Strategic Trends for 2016 – Generics Benefitting from Global Growth

products rise ahead. Key areas of focus now include “The fevered pitch respiratory products, injectable products and of globalization has controlled release solid oral dose products. Trend 3. Continued Globalization gone to a whole As noted earlier, few companies have truly taken other level.” advantage of the economies of scale afforded by Heather Bresch globalization. Pfizer and Teva, for example, have a fully Chief Executive Officer February 2016 integrated supply chain in generic cytotoxic drugs Mylan, N.V. Speech, GPhA allowing them to produce API inexpensively, formulate a full line of cytotoxics and then supply these products around the globe. The economies of volume in this injectable technologies in January 2014. A year earlier, product line are considerable and allow both Dr. Reddy’s Laboratories made a similar acquisition of companies to experience substantial profit. China and OctoPlus N.V. India have a number of high quality, low cost producers in API and formulations that have the In the complex liquids area, we have seen an arms race potential to globalize operations substantially, emerging among a number of players with Tris Pharma including in the United States. This is true for in a leadership position. Its extended release liquids companies in other geographies such as Europe and technology has allowed it to be one of two companies Japan. To date, we have not seen Chinese, European or ® to successfully genericize Tussionex and introduced Japanese generic pharmaceutical players make superior formulations of branded products in the substantial inroads into the U.S. market but we expect cough/cold and ADHD areas. this to change in 2016 and the years ahead. We expect to see increased competition and There are two key types of globalization activities to investment in technologies for more sophisticated

17 Strategic Trends for 2016 – Continued Benefit to Consumers note. The first, of course, is seen when companies like or Sun Pharma build up a presence in the U.S. market. The progress made by Indian-domiciled companies has been spectacular in the last decade. Lupin now sells over $900 million of generic product each year in the United States. The U.S. is the key profit center for them. The second is to build up global capabilities across markets. There are numerous large, growing and “Rapid growth in emerging markets will lucrative markets around the globe including territories continue to lead to dramatic shifting of like Russia, India, China, Korea, Mexico, and South budgets into pharmaceutical products.” Africa. Selected consolidators such as Abbott, Acino, Alvogen, Amneal, Glenmark, Lupin, Mylan, Stada, Teva will shift from 60% in 2000 to 43% in 2030. and Torrent understand the economics of globalization very well and are likely to continue the pursuit of Rapid growth in emerging markets will continue to organic and inorganic growth strategies globally to lead to shifting of budgets into generic pharmaceutical. leverage their product platforms. Key players in 2015 in Generic drugs benefit disproportionately from this globalization were Alvogen, Lupin, and Teva. We expect economic growth as they have a lower cost entry many others such as Abbott, Mylan and Sun to continue point for emerging middle class consumers than to globalize their operations in 2016 given the growth branded products. Figure 5 shows the experience of of emerging markets and the benefits from supplying the U.S. itself, where spending on medical products products to these markets. rose disproportionately with GDP. economies are of increasing interest. Trend 4. Continued Benefit to Consumers The OECD forecasts that the fraction of the world’s The GPhA and IMS Health have done very nice work GDP from the world’s 29 most developed economies documenting the gains for consumers generated by

18 Strategic Trends for 2016 – Consumer Surplus Delivered by Pricing Pressure

The widespread availability of generic drugs has Figure 5. Medical Spending in the U.S. and GDP 1929 to 2010 undoubtedly had a massive positive effect on humankind. We are struck by Cipla who state the

16,000 2,500 following mission: “Cipla is a global pharmaceutical Once consumers have company whose goal is to ensure that no patient shall covered the basics of food 14,000 and shelter they direct be denied access to high quality & affordable medicine marginal dollars to 2,000 and support.” 12,000 superior goods such as Cipla supplies inexpensive generic medicines on a investments in life global basis from plants that have a consistent high 10,000 extension (medical care). 1,500 quality of production. Plants that make products for unregulated markets in Africa are the same that are 8,000 used for product destined for Europe or the U.S. 1,000 6,000 Thanks to Cipla and hundreds of other global generic

companies like Lupin, Mylan, Sandoz,, Teva, Torrent and Medical Medical Care Spending(Current billion) $ GDP GDP (Currentbillion) $ 4,000 Zydus Cadila, the availability of life saving medicines at 500 a reasonable price has spread massively over the last 2,000 several decades. We do not doubt that widely observed improvements 0 0 1929 1935 1941 1947 1953 1959 1965 1971 1977 1983 1989 1995 2001 2007 in human life spans can be attributed at least in part to GDP the spread of generic pharmaceuticals.

Source: U.S. Bureau of Economic Analysis, National Income and Product Accounts Our prediction is that the benefit to consumers (consumer surplus) in the next two decades will generic in the United States. Of course, this analysis applies exceed that of the last two decades. equally well on a global basis.

19 Strategic Trends for 2016 – Consumer Surplus Delivered by Pricing Pressure

There are several reasons for this. One is that scale Companies like HuaHai, Hisun and Humanwell are economies in both API manufacture and production now on the ground in the U.S. market and are building have not yet been fully achieved. There are some low up their organizations in the same way as the Indian cost producers in the U.S. for commoditized products generic players did ten to twenty years ago. As these such as ENDO, but the real low cost producers in companies begin to achieve critical mass in the U.S. China and India have far to go in realizing the we expect to see much more downward pressure in potential of their cost advantage. The push by the FDA the U.S. on pricing of both high volume oral solid dose on manufacturing quality has impacted supply in the products and other categories such as injectables and short and medium term, leading global suppliers to liquids in the years ahead. deliver quality products in the pattern followed by Pricing pressures in the API market are becoming ever Cipla. Ultimately, there should be substantial gains in more intense and competition from large players in share by low cost producers as more and more both China and India has impacted the market. We product categories are commoditized. We expect to have been impressed by the emergence of specialty see prices for generic products in the U.S. ultimately players in the API market such as Ipca, Laurus, and decline as these economies are achieved. Symbiotec who are pursuing “last man standing” A particularly important trend for U.S. consumers has strategies to achieve dominance an API category. been the entry of Chinese generic pharmaceutical Ultimately, these strategies should have a profound players into the market. To date, Chinese participation benefit on human life spans and the quality of life. in any market outside of China has been modest, but a number of companies are going beyond their cost If the first cause of improving consumer surplus advantage in API to develop low cost formulations in relates to improving scale economies and greater order to market them on a global basis. While modest supply at a given price then the second relates to today, we expect this trend to pick up substantially human population growth and just as importantly over the next decade. growth in wealth.According to the IMF Gross World

20 Strategic Trends for 2016 – Consumer Surplus Delivered by Pricing Pressure

Product (GWP) has grown by between three and five percent per annum after inflation since 2010 to more than $90 trillion today. The IMF does not see this ACO’s and growth rate slowing down in the foreseeable future. performance-based The implication is obvious: rising wealth, rising populations and longer life spans all spell reimbursement disproportionately high growth in generic could profoundly pharmaceutical volumes in the years ahead benefiting the world’s people. impact the U.S. generic sector. These benefits coincide with the advent of big data Michael Leavitt methods which have been increasingly used to Former Secretary of HHS determine health outcomes. In particular with the advent of Accountable Care payor pressures for less expensive products are Organizations (ACOs) in the United States we are supplemented by consumer demand for the same. With seeing an increased interest on the part of health advances in big data analytics and product traceability, systems and employers to contract around health generic players should be better positioned globally to outcomes for employees while capitating costs. be able to correlate the availability and usage of their Former HHS Secretary Michael Leavitt noted in his medicines with population health statistics. The ability keynote address at the GPhA 2016 Annual Meeting to document direct health benefits in both developed that this interest could profoundly impact the generic and developing markets should be an important tool in pharma sector. driving greater utilization of these products and In the future, we believe that the favorable cost profile associated reimbursement. of generic drugs will become even more important as

21 2. Generic Pharma M&A Activity Update

22 Key Developments in M&A: 2015 Versus 2014

Record Volume . 2015 set an all time record for M&A volume in the Dollar Volume of Generic M&A ($ Billions), generic pharmaceutical industry with a total of $78 2014 vs. 2015 billion in reported volume . Two giant transactions did not close and are not counted here (Teva / Mylan & Mylan / Perrigo) $78 . Unreported transactions sizes (e.g., CVC / Alvogen) would have grown 2015 volume number even more . Reported M&A volume in global generics, by contrast, $12 in 2014 was $12 billion 2014 2015 Higher Valuations . Average revenue multiple of 5.3 times in 2015 versus Average Revenue Multiple in M&A 3.8 times in 2014 2014 vs. 2015 . Average multiple of Enterprise value to EBITDA of 15.1 times in 2015 versus 14.2 times in 2014 . Despite toughening credit conditions and a volatile 5.3x market for generic companies equities, thus far in 3.8x 2016 we do not see multiples coming down . Mylan’s recent 14x EBITDA bid for Meda in 2016 shows the appetite for paying healthy valuations is unchanged 2014 2015

23 Generic Pharma M&A Volumes, 2007 to 2015

The explosion in generic M&A deal volume in 2015 was historically unprecedented

Global Generic Deal Count and Volume, 2007-2015 $78.0 45 Deal Count Dollar Volume ($ billions) 80

70

40

60

35 32

50

30 27

40

25

30

20

$17.1 $15.5 20 $12.1

15

$7.2 10 $3.3 $2.1 $3.2 $12.0

10

8 8 0 7 6 5 5 5

5

-10

0 -20 2007 2008 2009 2010 2011 2012 2013 2014 2015

24 Generic Pharma M&A – 2015

Consolidation in the generics industry continues at sky-high valuations for quality assets

Ann. LTM EV/LTM Date Target Acquirer EV ($mm) Revenue ($mm) EBITDA ($mm) Revenue ($mm) EBITDA ($mm) 12/10/15 Laboratories Vannier Stada $13.0 NA NA NA NA 12/04/15 Osmotica Avista NA NA NA NA NA 11/17/15 VistaPharm Warburg Pincus NA NA NA NA NA 11/16/15 Intrapharm Laboratories RIEMSER Pharma NA NA NA NA NA 10/13/15 Alveda Teligent 34.0 12.0 4.1 2.8x 8.3x 10/01/15 Rimsa 2,300.0 227.0 NA 10.1x NA 09/20/15 Solus & Solus Care Div. (Sun) Strides Arcolab 25.1 NA NA NA NA 09/08/15 Amdipharm Concordia 3,523.4 446.0 NA 7.9x NA 09/08/15 EIMA United Pharmaceuticals Hikma Pharmaceuticals NA 1,489.0 NA NA NA 09/03/15 InvaGen Cipla 550.0 225.0 50.0 2.4x 11.0x 09/02/15 Kremers Urban Lannett 1,230.0 413.0 133.0 3.0x 9.2x 08/26/15 4 Products (Pfizer) Alvogen NA NA NA NA NA 07/28/15 Roxane Hikma Pharmaceuticals 2,650.0 765.0 132.5 3.5x 20.0x 07/27/15 Allergan Generics Teva Pharmaceuticals 40,500.0 6,600.0 2,382.4 6.1x 17.0x 07/24/15 Temmler's Specialty Product Portfolio Lupin NA NA NA NA NA 07/23/15 GAVIS and Novel Laboratories Lupin 880.0 96.0 36.7 9.2x 24.0x 07/23/15 22 ANDAs (Teva) ANI 25.0 NA NA NA NA 06/30/15 Time-Cap Laboratories Marksans NA NA NA NA NA 06/02/15 Nostrum Mylan 75.0 27.0 9.0 2.8x 8.3x 06/02/15 Primegen Amdipharm NA NA NA NA NA 05/21/15 Aspen Australia Gx Assets Strides Arcoab 299.9 NA NA NA NA 05/20/15 Silarx Lannett 42.0 27.5 NA 1.5x NA 05/18/15 Par Pharma Endo 8,050.0 1,310.0 487.9 6.1x 16.5x 05/13/15 Medquimica Lupin NA 31.0 NA NA NA 05/11/15 Pharmacare Litha Pharma 132.5 30.1 NA 4.4x NA 04/10/15 Aurobindo Australian Business Eris Pharma NA NA NA NA NA 03/31/15 Australian Gx Business Amneal NA NA NA NA NA 03/05/15 ANDA (Teva) ANI NA NA NA NA NA 02/23/15 Adcock Ingram (65% Stake) Bidvest 823.2 411.6 4.0 2.0x NM 02/05/15 Hospira Pfizer 16,323.0 4,463.7 746.8 3.7x 21.9x 02/02/15 Famy Care Mylan 800.0 58.3 NA 13.7x NA 01/26/15 Auden Mckenzie Actavis 461.1 NA NA NA NA 1st Quartile: 1.5x 8.3x Median: 3.7x 16.5x Mean: 5.3x 15.1x 3rd Quartile: 7.0x 20.0x

Source: Capital IQ, Press Release and Torreya estimates

25 Generic Pharma M&A – 2014

2014 was an active year for generic M&A but did not come close to 2015 in the level of activity

Ann. LTM EV/LTM Date Target Acquirer EV ($mm) Revenue ($mm) EBITDA ($mm) Revenue ($mm) EBITDA ($mm) 12/09/14 Valeant Asset IGI Labs $0.5 NA NA NA NA 11/14/14 Uman Pharmascience 29.2 NA NA NA NA 11/03/14 Sandoz ANDAs IDT 18.0 NA NA NA NA 10/09/14 Tower Holdings (CorePharma) Impax Labs 700.0 220.0 82.5 2.6x 11.6x 10/01/04 Omega Labs Sagent Pharma 85.3 32.8 7.4 1.8x NA 09/30/14 Focus Pharma AMCo 113.6 64.9 NA 1.4x 10.9x 09/29/14 Shasun Pharma Strides Arcolab 295.1 218.2 27.0 2.6x NA 09/08/14 Soft Gel ANDAs (Par) Aceto (Rising) 8.2 NA NA NA NA 08/20/14 2 ANDAs Lannett NA NA NA NA NA 07/16/14 InnoPharma Pfizer 360.0 NA NA NA NA 07/07/14 Dream Pharma Alvogen 187.0 87.5 NA 2.1x NA 06/30/14 2 Gx Assets (Actavis) Impax Labs NA NA NA NA NA 06/26/14 Globalpharma Pfizer 158.8 NA NA NA NA 06/24/14 DAVA Pharma Endo 600.0 131.0 99.0 4.6x 6.1x 06/23/14 Veropharm Abbott 631.0 150.0 NA 4.2x NA 06/11/14 Medreich Meijia Seika 290.0 157.0 24.0 1.8x 12.1x 05/28/14 Bedford Labs Hikma Pharma 300.0 19.0 (22.0) 15.8x NM 05/16/14 CFR Pharma Abbott 3,351.4 782.3 121.6 4.3x 27.6x 05/09/14 VersaPharm Akorn 440.0 95.0 NA 4.6x NA 04/29/14 Somar Endo 268.8 100.0 NA 2.7x NA 04/06/14 Ranbaxy Labs Sun Pharma 4,084.0 1,796.1 183.9 2.3x 22.2x 04/02/14 Alvogen Pamplona NA NA NA NA NA 04/01/14 Silommedical Actavis 100.0 NA NA NA NA 03/27/14 PACK Pharma Aceto (Rising) 100.0 46.0 11.4 2.2x 8.8x 03/24/14 Upsher-Smith Assets Vertical Pharma NA NA NA NA NA 02/06/14 25 Gx Assets (Cypress) Breckenridge NA NA NA NA NA 01/17/14 Certain Gx Assets (Actavis) Aurobindo 40.7 NA NA NA NA . 1st Quartile: 2.1x 9.9x Median: 2.6x 11.6x Mean: 3.8x 14.2x 3rd Quartile: 4.3x 17.2x

Source: Capital IQ, Press Release and Torreya estimates

26 Revenue Multiples at Historically High Levels

The median M&A value to revenue multiple of 5.1x was almost double the median multiple seen in 2011

Median Reported Revenue Multiple

5.1x

4.0x 3.8x

2.8x 2.6x

2011 2012 2013 2014 2015

27 3. Generic Industry Company Valuation Approach

28 Ranking Approach

This section provides rankings based on valuation of publicly traded and private companies in the U.S. generic pharma sector.

Inclusion / Exclusion Criteria . We have chosen to include not just companies headquartered in the United States, but have instead focused on the value of those who have a significant presence in the United States market, including companies from many countries such as China, India, Israel and Switzerland . We excluded companies such as Prestige Brands whose businesses are almost entirely in the OTC space . We excluded companies such as AMRI or Cambrex whose businesses involve manufacture of API but not in marketing formulations in the United States . For large public companies that have a generic pharma division (Abbott Labs, Teva or Fresenius) we broke out the division. But, for other companies where we were not able to fully separate the business based on segment data, our estimates of value may included some activity from on-patent generics

Estimating Value . For public companies, valuations were determined by computation of enterprise value (market value of equity + debt – cash). Enterprise value gives a view of the market’s valuation of a business independent of its balance sheet . We then calculated global average ratios of enterprise value to revenue and enterprise value to EBITDA (earnings flow before cash, depreciation and amortization) for publicly traded companies as of February 16, 2016 . We checked to see if these valuation ratios followed country specific patterns

29 Ranking Approach

. Interestingly, while we had seen higher ratios systematically in China six months ago, this valuation differential has disappeared due to a fairly sharp downdraft in Chinese equities in 2016 – There were no other major areas in the developed world with statistically significant differences in valuation ratios from global averages Valuing Private Companies . For private companies, we typically have available a revenue estimate obtained from news stories, the company’s own web site, industry participants etc. Data on a number of private companies such as Alvogen or Amneal that access debt markets, were available from Moody’s Investor Service: – In a few cases, such estimates were not available and we looked at prescription data in order to obtain our best estimate of a company’s revenue in 2015 or 2014 – We know that some of these estimates will be incorrect and certain companies are missing due to the lack of financial data . Based on these data we then imputed valuations for private companies as a function of their estimated revenue. If EBITDA data were available and implied a different value estimate, we then used an EBITDA value imputation approach instead, based on the view that the market is ultimately valuing companies for the cash flows that they produce. Obviously, our imputation approach provides a crude view of valuation given that we do not have visibility into a private company’s growth prospects, pipeline etc. and thus are simply assuming that any given private company can be valued as the average public company . We employed a revenue multiple of 3.9 times to impute valuations of private companies based on median multiples observed in the valuation table of public-traded generic pharmaceutical companies with a U.S. presence as of Feb 16, 2016. that follows . In a few cases, we have been made aware of private valuations for pre-revenue companies and have included such companies in the value ranking where we had the data

30 Valuation of Publicly-Traded Generic Companies with a U.S. Presence, Feb 2016

Company LTM EV/LTM Name Exchange:Ticker Headquarters EV ($mm) Revenue ($mm) EBITDA ($mm) Revenue ($mm) EBITDA ($mm) Sun Pharma NSEI:SUNPHARMA India $29,530 $3,888 $1,111 7.6x 26.6x Mylan NasdaqGS:MYL Ireland 27,818 9,429 2,718 3.0x 10.2x Perrigo NYSE:PRGO Ireland 26,105 5,350 1,443 4.9x 18.1x Endo NasdaqGS:ENDP Ireland 19,862 3,354 782 5.9x 25.4x Lupin BSE:500257 India 11,390 1,874 506 6.1x 22.5x Dr. Reddy's BSE:500124 India 7,314 2,263 598 3.2x 12.2x Cipla NSEI:CIPLA India 6,254 1,987 416 3.1x 15.0x Aurobindo BSE:524804 India 6,110 1,941 446 3.1x 13.7x Hikma LSE:HIK United Kingdom 5,739 1,460 433 3.9x 13.3x Zydus Cadila BSE:532321 India 4,837 1,370 332 3.5x 14.6x Akorn NasdaqGS:AKRX United States 3,994 593 208 6.7x 19.2x Torrent Pharma BSE:500420 India 3,311 846 249 3.9x 13.3x Glenmark BSE:532296 India 3,289 1,055 171 3.1x 19.2x Huahai Pharma SHSE:600521 China 3,116 416.8 77 7.5x 40.4x Hisun Pharma SHSE:600267 China 2,765 1,628 197 1.7x 14.1x Impax NasdaqGS:IPXL United States 2,279 596 133 3.8x 17.1x Lannett NYSE:LCI United States 1,802 407 236 4.4x 7.6x Wockhardt BRSE:WBIO India 1,337 590 95 2.3x 14.1x Mayne Pharma ASX:MYX Australia 691 109 23 6.4x 30.7x Amphastar Pharma NasdaqGS:AMPH United States 477 211 (3) 2.3x NA Sagent Pharma NasdaqGS:SGNT United States 392 289 28 1.4x 14.2x Coherus NasdaqGM:CHRS United States 375 31 (64) 12.1x NA Momenta NasdaqGS:MNTA United States 335 52 (91) 6.4x NA ANI Pharmaceuticals NasdaqGM:ANIP United States 298 56 24 5.3x 12.5x Teligent AMEX:IG United States 283 34 4 8.4x 64.0x Claris Lifesciences Limited BSE:533288 India 125 112 23.8 1.1x 5.2x 1st Quartile: 3.1x 13.3x Median: 3.9x 14.6x 3rd Quartile: 6.3x 20.8x

Valuations as of Feb 15, 2016.

31 4. U.S. Generic Company Value Ranking

32 Top 25 Generic Companies with a U.S. Operating Presence Generic Sector Value Ranking – Torreya Insights

Value Enterprise Value / Revenue EBITDA Rank Name Exchange:Ticker HQ - Country Company Type Imputed Value ($mm) ($mm) ($mm) 1 Pfizer Established Pharma NYSE:PFE United States Public Company 84,621 21,587 12,885 2 Teva Generics (including Allergan Gx) NYSE:TEVA Israel Public Co Segment 70,301 9,546 2682 3 Sandoz / Novartis SWX:NOVN Switzerland Public Co Segment 36,495 9,310 3985 4 Sun Pharma NSEI:SUNPHARMA India Public Company 30,035 4,021 1149 5 Mylan NasdaqGS:MYL United Kingdom Public Company 28,170 9,429 3010 6 Lupin BSE:500257 India Public Company 11,019 1,831 603.1 7 Fresenius - Kabi Generic Drugs Public Segment Germany Public Co Segment 10,463 2669 561 8 Endo Generics NasdaqGS:ENDP Ireland Public Co Segment 9,549 2,436 NA 9 Perrigo - Prescription Pharma NYSE:PRGO Ireland Public Co Segment 7,868 1,073 540 10 Generics Public Segment Public Co Segment 7,775 1,984 495.9 11 Dr. Reddy's BSE:500124 India Public Company 7,317 2,368 562.4 12 Hikma LSE:HIK United Kingdom Public Company 6,503 2,058 327.0 13 Private Company Canada Private Company 6,388 1,630 NA 14 GSK Mature Brands Public Segment United Kingdom Public Co Segment 6,272 1,600 1440 15 Cipla NSEI:CIPLA India Public Company 6,164 2,018 442 16 Zydus Cadila BSE:532321 India Public Company 6,164 1,384 282.5 17 Aurobindo BSE:524804 India Public Company 5,942 1,930 466 18 Akorn NasdaqGS:AKRX United States Public Company 5,600 593 208.3 19 Glenmark BSE:532296 India Public Company 5,345 1,055 171.4 20 Torrent Pharma BSE:500420 India Public Company 4,418 846 249.0 21 Chemo Private Company Spain Private Company 4,312 1,100 NA 22 Humanwell SHSE:600079 China Public Company 3,728 1,137 326.6 23 Intas Pharma Private Company India Private Company 3,042 776 NA 24 Alvogen Private Company Luxembourg Private Company 2,940 750 187.5 25 Huahai Pharma SHSE:600521 China Public Company 2,899 417 77.1

33 Generic Companies with a U.S. Operating Presence Ranked #26-50 Generic Sector Value Ranking – Torreya Insights

Value Enterprise Value / Revenue EBITDA Rank Name Exchange:Ticker HQ - Country Company Type Imputed Value ($mm) ($mm) ($mm) 26 Amneal Private Company United States Private Company 2,881 735 NA 27 Prasco Private Company United States Private Company 2,588 660 NA 28 Impax NasdaqGS:IPXL United States Public Company 2,499 596 133.1 29 Wockhardt BRSE:WBIO India Public Company 2,361 590 94.9 30 Alembic BSE:533573 India Public Company 2,062 329 63.9 31 Alkem / Heritage Pharma Private Company India Private Company 1,993 498 89.46 32 Ajanta Pharma BSE:532331 India Public Company 1,972 237 80.7 33 Breckenridge Pharma Private Company United States Private Company 1,568 400 NA 34 Lannett NYSE:LCI United States Public Company 1,537 407 236.1 35 Momenta NasdaqGS:MNTA United States Public Company 965 52 (90.7) 36 Coherus NasdaqGM:CHRS United States Public Company 851 31 (63.9) 37 Osmotica / Vertical Private Company United States Private Company 840 210 NA 38 Hetero Private Company India Private Company 751 188 NA 39 G & W Laboratories Private Company United States Private Company 624 156 NA 40 Mayne Pharma ASX:MYX Australia Public Company 624 109 22.5 41 Sagent Pharma NasdaqGS:SGNT United States Public Company 584 289 28 42 Amphastar Pharma NasdaqGS:AMPH United States Public Company 557 211 (3.1) 43 ANI Pharmaceuticals NasdaqGM:ANIP United States Public Company 505 56 23.9 44 Nephron Pharmaceuticals Private Company United States Private Company 500 125 NA 45 Epic Pharma, LLC Private Company United States Private Company 475 60 24.0 46 KVK-TECH Private Company United States Private Company 380 95 NA 47 Teligent AMEX:IG United States Public Company 371 34 4.42 48 County Line Pharma Private Company United States Private Company 356 45 18 49 Ingenus Pharma Private Company United States Private Company 324 81 NA 50 X-Gen Pharma Private Company United States Private Company 248 62 NA

34 Generic Companies with a U.S. Operating Presence Ranked #51-73 Generic Sector Value Ranking – Torreya Insights

Value Enterprise Value / Revenue EBITDA Rank Name Exchange:Ticker HQ - Country Company Type Imputed Value ($mm) ($mm) ($mm) 51 Vertice Pharma Private Company United States Private Company 240 60 NA 52 Blu Pharmaceuticals LLC Private Company United States Private Company 224 56 NA 53 Sterimax Private Company Canada Private Company 200 50 NA 54 PII Private Company United States Private Company 160 NA NA 55 Citron Pharma LLC Private Company United States Private Company 157 40 NA 56 Claris Lifesciences Limited Private Company India Public Company 102 103 NA 57 Amerigen Pharmaceuticals Limited Private Company China Private Company 100 NA NA 58 Banner Life Sciences Private Company United States Private Company 96 24 NA 59 Virtus Pharma Private Company United States Private Company 92 23 NA 60 Granard Private Company United States Private Company 90 NA NA 61 Vista Pharma Private Company United States Private Company 84 21 NA 62 Lehigh Valley Technologies Private Company United States Private Company 80 20 NA 63 Stratus Pharma Private Company United States Private Company 80 20 NA 64 EPIRUS NasdaqCM:EPRS United States Public Company 76 0 (31.5) 65 Ritedose Pharma Private Company United States Private Company 64 16 NA 66 Vensun Pharmaceuticals, Inc. Private Company United States Private Company 60 0 NA 67 Bayshore Pharma Private Company United States Private Company 50 0 NA 68 CANDA Pharma Private Company United States Private Company 50 0 NA 69 Vitruvias Therapeutics, LLC Private Company United States Private Company 40 0 NA 70 Stason Pharmaceuticals, Inc. Private Company United States Private Company 33 8 NA 71 Amring Pharma Private Company United States Private Company 30 0 NA 72 Slayback Pharma Private Company United States Private Company 30 0 NA 73 Oakwood Laboratories LLC Private Company United States Private Company 26 6 NA

35 5. Global Generic Company Value Ranking

36 Top 25 Generic Companies Worldwide Generic Sector Value Ranking – Torreya Insights

Value Enterprise Value / Revenue EBITDA Rank Name Exchange:Ticker HQ - Country Company Type Imputed Value ($mm) (2015, $mm) (2015, $mm) 1 Pfizer Established Pharma NYSE:PFE United States Public Company 84,621 21,587 12,885 2 Teva Generics (including Allergan Gx) NYSE:TEVA Israel Public Co Segment 70,301 9,546 2682 3 Sandoz / Novartis SWX:NOVN Switzerland Public Co Segment 36,495 9,310 3985 4 Sun Pharma NSEI:SUNPHARMA India Public Company 30,035 4,021 1149 5 CR Pharmaceutical Private Company China Private Company 29,047 7,410 345 6 Yangtze River Pharma Private Company China Private Company 28,185 7,190 NA 7 Mylan NasdaqGS:MYL United Kingdom Public Company 28,170 9,429 3010 8 EMS Private Company Brazil Private Company 16,464 4,200 NA 9 Abbott Established Pharma Segment: NYSE:ABT United States Public Co Segment 14,582 3,720 711 10 Hengrui SHSE:600276 China Public Company 13,235 1,401 376 11 Lupin BSE:500257 India Public Company 11,019 1,831 603.1 12 Fresenius - Kabi Generic Drugs Public Segment Germany Public Co Segment 10,463 2669 561 13 Aspen Pharmacare JSE:APN South Africa Public Company 9,864 2,236 553 14 Endo Generics NasdaqGS:ENDP Ireland Public Co Segment 9,549 2,436 NA 15 Celltrion KOSDAQ:A068270 South Korea Public Company 9,534 452 192.0 16 Perrigo - Prescription Pharma NYSE:PRGO Ireland Public Co Segment 7,868 1,073 540 17 Sanofi Generics Public Segment France Public Co Segment 7,775 1,984 495.9 18 Dr. Reddy's BSE:500124 India Public Company 7,317 2,368 562.4 19 Sinopharm - Rx Segment Private Company China Private Company 7,208 2,044 NA 20 Hikma LSE:HIK United Kingdom Public Company 6,503 2,058 327.0 21 Apotex Private Company Canada Private Company 6,388 1,630 NA 22 GSK Mature Brands Public Segment United Kingdom Public Co Segment 6,272 1,600 1440 23 Cipla NSEI:CIPLA India Public Company 6,164 2,018 442 24 Zydus Cadila BSE:532321 India Public Company 6,164 1,384 282.5 25 Aurobindo BSE:524804 India Public Company 5,942 1,930 466

37 Top Generic Companies Worldwide, Ranked 26-50 by Value Generic Sector Value Ranking – Torreya Insights

Value Enterprise Value / Revenue EBITDA Rank Name Exchange:Ticker HQ - Country Company Type Imputed Value ($mm) ($mm) ($mm) 26 R-Pharm Private Company Russia Private Company 5,880 1,500 NA 27 Akorn NasdaqGS:AKRX United States Public Company 5,600 593 208.3 28 Huadong Medicine SZSE:000963 China Private Company 5,558 3,295 268 29 CSPC Pharma SEHK:1093 Hong Kong Public Company 5,473 1,413 290.9 30 Glenmark BSE:532296 India Public Company 5,345 1,055 171.4 31 PT Kalbe JKSE:KLBF Indonesia Public Company 4,929 1,209 213.0 32 Fosun Pharma Generics Business SHSE:600196 China Public Co Segment 4,781 1,220 229.4 33 Eurofarma Laboratórios Private Company Brazil Private Company 4,761 823 326.8 34 GPC SEHK:874 China Public Company 4,553 3,031 226.0 35 Torrent Pharma BSE:500420 India Public Company 4,418 846 249.0 36 Chemo Private Company Spain Private Company 4,312 1,100 NA 37 Laboratorios Bagó Private Company Argentina Private Company 4,312 1,100 NA 38 Salubris Pharmaceuticals SZSE:002294 China Public Company 4,122 507 220.09 39 Roemmers Private Company Argentina Private Company 4,116 1,050 NA 40 Polpharma Private Company Poland Private Company 3,920 1,000 NA 41 Qilu Pharma Private Company China Private Company 3,834 978 NA 42 Dongbao Pharma SHSE:600867 China Public Company 3,829 234 74.3 43 Neptunus Group Private Company China Private Company 3,747 956 NA 44 Humanwell SHSE:600079 China Public Company 3,728 1,137 326.6 45 Stada DB:SAZ Germany Public Company 3,693 2,496 555.8 46 Kanghong Pharma SZSE:002773 China Public Company 3,561 270 61.0 47 Livzon Pharmaceutical Group Inc. SZSE:000513 China Public Company 3,504 894 134.8 48 Conba Pharma SHSE:600572 China Public Company 3,463 578 126.4 49 Piramal Enterprises BSE:500302 India Public Company 3,412 843 171.1 50 Hualan Biological SZSE:002007 China Public Company 3,397 201 100.2

38 Top Generic Companies Worldwide, Ranked 51-75 by Value Generic Sector Value Ranking – Torreya Insights

Value Enterprise Value / Revenue EBITDA Rank Name Exchange:Ticker HQ - Country Company Type Imputed Value ($mm) ($mm) ($mm) 51 Haisco Pharma SZSE:002653 China Public Company 3,378 195 69.3 52 Kelun Pharma SZSE:002422 China Public Company 3,371 1,241 288 53 Hypermarcas BOVESPA:HYPE3 Brazil Public Company 3,287 1,196 296.0 54 Aodong Medicine SZSE:000623 China Public Company 3,280 361 70.7 55 Unilab Private Company Private Company 3,273 835 NA 56 Joincare Pharma SHSE:600380 China Public Company 3,243 1,196 195.5 57 Genomma BMV:LAB B Mexico Public Company 3,155 932 172.3 58 Gloria Pharmaceuticals SZSE:002437 China Public Company 3,084 307 96.7 59 Harbin Pharma SHSE:600664 China Public Company 3,056 2,662 118.3 60 Intas Pharma Private Company India Private Company 3,042 776 NA 61 Wuzhou Pharm SHSE:600252 China Public Company 3,026 518 179.7 63 Alvogen Private Company Luxembourg Private Company 2,940 750 187.5 62 Pharmascience Private Company Canada Private Company 2,940 750 NA 64 Huahai Pharma SHSE:600521 China Public Company 2,899 417 77.1 65 Amneal Private Company United States Private Company 2,881 735 NA 66 Dahuanong Animal Health SZSE:300186 China Public Company 2,875 164 24.7 67 Hisun Pharma SHSE:600267 China Public Company 2,807 1,628 196.5 68 SL Pharmaceutical SZSE:002038 China Public Company 2,753 200 119.4 69 China Medical System SEHK:867 China Public Company 2,729 475 147.4 70 Gedeon Richter BUSE:RICHTER Hungary Public Company 2,601 1,352 264.3 71 Prasco Private Company United States Private Company 2,588 660 NA 72 Aché Laboratórios Private Company Brazil Private Company 2,524 533 173.2 73 Yiling Pharma SZSE:002603 China Public Company 2,524 471 75.9 74 Xinbang Pharma SZSE:002390 China Public Company 2,523 399 45.9 75 Hybio Pharma SZSE:300199 China Public Company 2,519 68 34.6

39 Top Generic Companies Worldwide, Ranked 76-100 by Value Generic Sector Value Ranking – Torreya Insights

Value Enterprise Value / Revenue EBITDA Rank Name Exchange:Ticker HQ - Country Company Type Imputed Value ($mm) ($mm) ($mm) 76 Impax NasdaqGS:IPXL United States Public Company 2,499 596 133.1 77 Pharmstandard Private Company Russia Private Company 2,449 625 188.0 78 Dingli Tech SHSE:900907 China Public Company 2,443 205 22.7 79 Chase Sun Pharma SZSE:300026 China Public Company 2,434 462 85.2 80 Tecnoquimicas Private Company Colombia Private Company 2,411 603 NA 81 Luye Pharma SEHK:2186 China Public Company 2,409 509 130.3 82 Mega Labs S.A. Private Company Uruguay Private Company 2,400 600 NA 83 Wockhardt BRSE:WBIO India Public Company 2,361 590 94.9 84 ZBD Pharma SHSE:603567 China Public Company 2,356 257 104.9 85 Jiangzhong Pharma SHSE:600750 China Public Company 2,356 457 72.2 86 Chongqing Zhifei Bio SZSE:300122 China Public Company 2,340 129 29.0 87 North China Pharma SHSE:600812 China Public Company 2,330 1,516 104.6 88 Hisoar Pharma SZSE:002099 China Public Company 2,320 213 38.8 89 Sawai TSE:4555 Japan Public Company 2,238 879 221.3 90 Zhongxin Pharma SHSE:600329 China Public Company 2,236 1,143 74.8 91 KrKa LJSE:KRKG Slovenia Public Company 2,170 1,442 404.6 92 China Traditional Chinese Medicine SEHK:570 Hong Kong Public Company 2,135 434 107.3 93 Yibai Pharmaceutical SHSE:600594 China Public Company 2,101 509 99.4 94 Mankind Pharma Private Company India Private Company 2,100 525 NA 95 Alembic BSE:533573 India Public Company 2,062 329 63.9 96 Changchun High & New Tech SZSE:000661 China Public Company 2,059 365 97.4 97 Jiangsu Wuzhong Group Private Company China Private Company 2,016 514 NA 98 Alkem / Heritage Pharma Private Company India Private Company 1,993 498 89.5 99 Sihuan Pharma SEHK:460 China Public Company 1,989 497 340 100 Ajanta Pharma BSE:532331 India Public Company 1,972 237 80.7

40 6. Profiles of Top Twenty Global Generic Pharmaceutical Companies

41 #1: Pfizer Global Established Pharma (GEP)

Company Details

Address: Pfizer Inc. 235 East 42nd Street New York, New York 10017 Company Overview United States Main Phone: 212-733-2323 . Pfizer Inc. manufactures, and sells ethical and OTC pharmaceutical products across Website: www.pfizer.com the world. The company operates three divisions: Global Innovative Pharmaceutical Type of Company: Public Company Segment (GIP); Global , Oncology and Consumer Healthcare (VOC); and Global Exchange and Ticker: NYSE:PFE Established Pharmaceutical (GEP) segments. Business Head: John Young . The GEP segment offers patent-protected products that have lost marketing Summary Financials ($ millions) exclusivity in various markets; and generic pharmaceuticals, and sterile injectable and biosimilar development products. Key products in the Pfizer GEP business are off Revenue (2015) $21,587mm patent brands such as Lipitor®, Celebrex® and Lyrica®. In total, Pfizer GEP markets EBITDA (2015) $12,885mm over 200 so-called branded generics across the globe. GEP also includes Hospira and has a world class portfolio of generic injectable pharmaceutical products. Imputed Value $84,621mm . The top products in the GEP segment are branded generics, including Lipitor, Lyrica, Notes: Data for Revenue and EBITDA for FY ending Dec 2015. These data were extracted from Pfizer's segment data for 2015 Zyvox, Pristiq, Premarin, Norvasc, Xalatan, Zoloft, Relpax, EpiPen, Effexor, Zithromax, which were reported by press release on Feb 2, 2016. Imputed Medrol, Superazon. Also included are a portfolio of biosimilar products, Pfizer’s market value is computed as 2015 revenue times the median multiple for comparable publicly traded generic companies. The Greenstone generic business and Hospira’s biosimilar business. median multiple was computed as of Feb 15, 2016. . Pfizer has indicated a willingness to separate GEP into a new spun off company sometime around 2018, although the final decision to go forward with this decision Ranking (as of Feb 27, 2016) has not been made. . Pfizer serves wholesalers, retailers, hospitals, clinics, government agencies, Generic Value Rank #1 pharmacies, and individual provider offices, as well as centers for disease control and Generic Revenue Rank #1 prevention. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.

42 #2: Teva Generics

Company Details Address: Teva Pharmaceutical Industries Limited 5 Basel Street, Box 3190 Petach Tikva, - 49131 Company Overview Israel Main Phone: 972 3 926 7267 . Teva Pharmaceutical manufactures and markets pharmaceutical products around the Website: www.tevapharm.com world. Teva’s Generic Medicines segment offers generic or branded generic Type of Company: Public Co Segment medicines; specialized products, such as sterile products, hormones, narcotics, high- Exchange and Ticker: NYSE:TEVA potency drugs, and cytotoxic substances; and active pharmaceutical ingredients. Business Head: Siggi Olafsson . Teva’s generic products include a wide variety of therapeutics, ranging from cardiovascular, anti-infective, central nervous system, anti-inflammatory, oncolytic, Summary Financials ($ millions) anti-diabetic, analgesic, dermatologic, respiratory, and women's health, with dosage Revenue (2016) $17,934 forms including tablets, capsules, injectables, creams, ointments, liquids and inhalables. . In 2015 Teva acquired Allergan’s generic business for $40.5 billion. Teva wrote in its EBITDA (2016) $7,000 press release announcing the transaction (July 27, 2015): “When combined with Imputed Value $70,301 Teva’s strong generics portfolio, Allergan Generics’ world-class generics pipeline, Notes: Market value estimate tied to 2016 numbers for Teva’s which holds a leading position in first-to-file opportunities in the U.S., will further generic segment after the Allergan Generics acquisition using estimates in press release announcing the Allergan deal. enhance Teva’s goals of delivering the highest quality generic medicines at the most Because this transaction has not yet closed, the numbers are competitive prices and cultivating the best development pipeline in the industry. The pro forma. Imputed market value is computed as 2016 revenue times the median multiple for comparable publicly traded resulting world-class product portfolio will be complemented by a significantly generic companies. expanded and more efficient global footprint, including leadership positions and strengthened operations, sales and R&D platforms in attractive markets around the Ranking (as of Feb 27, 2016) world.” Teva has a large API business with a leading position in a number of specialty API categories such as cytotoxics. Generic Value Rank #2 . Teva Pharmaceutical Industries Limited is based in Petah Tikva, Israel and was Generic Revenue Rank #2 founded in 1901.

43 #3: Sandoz

Company Details Address: Novartis AG Lichtstrasse 35 Basel, Basel-Stadt 4056 Company Overview Switzerland Main Phone: 41 61 324 11 11 . The Sandoz division of Novartis offers generic pharmaceuticals comprising active Website: www.sandoz.com ingredients and finished dosage forms. Type of Company: Public Company Segment . Sandoz has more than ten major global development centers and a worldwide Exchange and Ticker: NYSE:NVS network of more than 30 manufacturing sites, and its products are available in more Business Head: Richard Francis than 160 countries. Summary Financials ($ millions) . Sandoz’s portfolio of approximately 1,100 generic molecules is already available to more than 90% of the world’s population. Revenue (2015) $9,310 . Sandoz’s portfolio ranges from standard generics to complex value-added products. EBITDA (2015) $3,985 These generic products range in complexity from oral solids, gels and patch Imputed Value $36,495 technologies, to complex injectables, inhalers and . Sandoz is a leading global provider and producer of essential anti-infective medicines Notes: Market value estimate tied to 2015 Sandoz segment numbers taken from Novartis’ financials which were reported . Other key product groups include cardiovascular medicines, treatments for central on January 27, 2016. Imputed market value is computed as 2015 Sandoz revenue times the median multiple for comparable nervous system disorders, gastrointestinal medicines, oncology and respiratory publicly traded generic companies. therapies, as well as for blood and blood forming organ disorders. . Sandoz was the first company to develop and market follow-on versions of biopharmaceuticals. Ranking (as of Feb 27, 2016) . Novartis is shifting $900mm in revenue of mature products to Sandoz in 2016. This will raise the value of the segment considerably. Generic Value Rank #3 . Novartis AG was founded in 1895 and is headquartered in Basel, Switzerland. Generic Revenue Rank #3 . Sandoz employs 26,500 people.

44 #4: Sun Pharma

Company Details Address: Sun Pharmaceutical Industries Limited Acme Plaza, Andheri Kurla Road Mumbai, Maharashtra 400059 Company Overview India Main Phone: 91 22 6696 9696 . Sun Pharmaceutical Industries Limited, a specialty pharmaceutical company, Website: www.sunpharma.com manufactures and markets pharmaceutical formulations and active pharmaceutical Type of Company: Public Company ingredients (APIs) in India and internationally. Exchange and Ticker: NSEI:SUNPHARMA . Sun provide high-quality, affordable medicines trusted by healthcare professionals Business Head: Dilip Shangvi and patients in over 150 countries of the world. Summary Financials ($ millions) . Sun’s presence in 65 key markets around the world is supported by 45 manufacturing facilities, across five continents. Revenue (2015) $4,021 . Sun has a multi-cultural workforce, comprising more than 30,000 employees of over EBITDA (2015) $1,149 50 nationalities. Enterprise Value $30,395 . Sun’s portfolio includes generics, branded generics, complex or difficult to make Notes: Data for Revenue and EBITDA for LTM ended Dec 31, technology intensive products, over-the-counter (OTC) products, anti-retrovirals 2015. Sun Pharma has March 31 fiscal year end. Enterprise value (ARVs), Active Pharmaceutical Ingredients (APIs) and intermediates. as of Feb 24, 2016. Computed as market cap plus debt minus cash. . It’s portfolio of over 2000 high quality molecules covers multiple dosage forms, including tablets, capsules, injectables, inhalers, ointments, creams and liquids. Our presence extends across a vast range of therapeutic segments covering psychiatry, anti-infectives, neurology, cardiology, orthopaedic, diabetology, gastroenterology, Ranking (as of Feb 27, 2016) ophthalmology, nephrology, urology, dermatology, gynaecology, respiratory, oncology, dental and nutritionals. Generic Value Rank #4 . Sun Pharmaceutical Industries Limited was founded in 1983 and is based in Mumbai, Generic Revenue Rank #9 India. Sun’s Ranbaxy subsidiary was founded in 1961.

45 #5: CR Pharmaceutical

Company Details Address: China Resources Pharmaceutical Group Ltd. 27/F,Block A,Phoenix Plaza,No.A-5,Shu Guang Xi Li, Chaoyang District Company Overview Beijing, 100028 China . CR Pharma is the largest pharmaceutical company in China, registered in Beijing, Main Phone: 86-10-57985000 and engaged in the whole drug industrial chain including marketing of Website: www.crpharm.com formulations, manufacturing of API and formulations and distribution. Type of Company: Privately held Business Head: Wang Chuncheng . CR Pharma is structured as a holding company for many subsidiary companies which market generic pharmaceutical products across China. CR Pharma does not Summary Financials ($ millions) have a presence in markets outside of China. One of its subsidiaries, Beijing Pharma, is one of the largest distributors of drugs in the world. Revenue (2015) $7,410 . CR Pharma does business across more than 30 provinces in China, providing EBITDA (2015) NA generics across therapeutic areas such as cardiovascular, diabetes, women health Imputed Value $29,047 and pediatrics. CR Pharma also manufactures and markets API, biosimilars, Notes: CR Pharma reports its 2013 revenues and financials on its Traditional Chinese Medicines (TCM), OTC products and medical devices. website. However, because Beijing Pharma is a big source of this revenue and is primarily in distribution, we have reduced the company’s . CR Pharma owns many pharmaceutical marketing companies including including revenue estimate by 50% and have converted hem from HKD to USD. China Resources Pharmaceutical Commercial Group Company, China Resources We do not have access to financial numbers since 2013 and thus have assumed zero growth since then. In reality, CR Pharma may well be a Sanjiu Medical & Pharmaceutical Co., Ltd., China Resources double-Crane substantially larger company than portrayed here. Imputed value is computed as 2015 revenue times the median revenue multiple for Pharmaceutical co., Ltd., Shandong Dong-E-E-Jiao Pharmaceutical Co., Ltd., China publicly traded generic companies in Feb 2016. Resources Saike Pharmaceutical Co., Ltd., China Resources Zizhu Pharmaceutical Co., Ltd., China Anhui World-best Pharmaceutical Co., Ltd., China Resources Ranking (as of Feb 27, 2016) PienTze Huang Pharmaceutical Co., Ltd. Generic Value Rank #5 . CR Pharma is one of the seven core strategic business units of China Resources (Holdings) Company Limited, which was founded in 1938. Generic Revenue Rank #5 . This company is a state-owned enterprise.

46 #6: Yangtze River Pharma

Company Details Address: Yangtze River Pharmaceutical Group Bld 8, Lane 67, Libing Road, Zhangjiang High Tech Park Company Overview Shanghai, 201203 China . Yangtze River Pharmaceutical Group (YRPG) is a fully-integrated generic Main Phone: 86-10-57985000 pharmaceutical company in China with marketing, R&D and manufacturing Website: www.yangzijiang.com capabilities. Type of Company: Privately held . YRPG does not market generics outside of China. Business Head: Xu Jingren . This state-owned group achieved $7.19 billion in revenue in 2014 with CAGR of Summary Financials ($ millions) 19% for the past 10 years. . YRPG has 24 branch companies with over 10,000 employees across China. Revenue (2015) $7,190 . YRPG’s facilities cover 2 million square meters and its sales network spans all EBITDA (2015) NA over China. Imputed Value $28,185

. Yangtze River Pharma may have the largest campus of any pharmaceutical Notes: Revenue estimate provided by the company in its profile company in the world. It’s campus is over a mile wide and is best crossed by car. at BioPharm America in September 2014. The estimate is assumed to be for 2013. We have carried this number forward . More than 130 products have been registered and marketed in China, covering 10 assuming zero growth through 2015. It is likely, in fact, that major therapeutic areas with great emphasis in the fields of Infection, CNS, GI, revenues have grown substantially for Yangtze River. Imputed value is computed as 2015 revenue times the median revenue Respiratory, CNS and Oncology. multiple for publicly traded generic companies in Feb 2016. . YRPG invests 3% of its annual sales revenue into technological , and it has built the Jiangsu New Medicine Institute through industry-university- Ranking (as of Feb 27, 2016) institution cooperation. Its 400-person R&D platform includes a world class Generic Value Rank #6 technological center, a key state-level laboratory of pharmaceutical preparation, and an engineering R&D center for traditional Chinese medicine. Generic Revenue Rank #6 . YRPG was founded in 1971.

47 #7: Mylan

Company Details Address: Mylan N.V. Albany Gate, Darkes Lane Potters Bar, Hertfordshire EN6 1AG Company Overview United Kingdom Website: www.mylan.com . Mylan offers a portfolio of more than 1,400 generic and branded pharmaceuticals Type of Company: Public Company which are marketed in approximately 165 countries and territories. Exchange and Ticker: NYSE:MYL . Its global R&D and manufacturing platform includes more than 50 facilities. Mylan Business Head: Heather Bresch (CEO) is also one of the world’s largest producers of active pharmaceutical ingredients. . Through its global manufacturing facilities Mylan has manufacturing capacity Summary Financials ($ millions) capable of producing approximately 65 billion oral solid doses, 3,600 kiloliters of APIs, 500 million injectable units, 260 million patches and 15 million semisolid units Revenue (2015) $9,421 per year. Mylan reaches many channels including retail, hospital and direct. EBITDA (2015) $3,010 . Mylan holds the number two ranking in the U.S. generics prescription market both in terms of sales and prescriptions dispensed. Enterprise Value $28,170 . Approximately one in every 13 prescriptions dispensed in the U.S. is a Mylan Notes: Data for Revenue and EBITDA for FY ending Dec 2015. Market value estimate as of Feb 27, 2016. product. Mylan’s sales are derived primarily from the sale of oral solid dosages, injectables, transdermal patches, gels, creams, ointments and unit dose offerings. . Mylan has built up through acquisitions over time starting with Matrix for HIV drugs and Merck KGAA’s generic business which created a more global platform in 2007. Other key acquisitions include Famycare and Agila Specialties. The recent Ranking (as of Feb 27, 2016) large acquisition of Abbott’s European branded generics business has helped to create critical mass for its business in Europe. Mylan will be further transformed Generic Value Rank #7 via its acquisition of MEDA, announced in February 2016. Generic Revenue Rank #3 . Mylan was founded in 1961 and has 30,000 employees.

48 #8: EMS

Company Details Address: EMS S/A Rodovia SP 101, Km 08 Hortolândia, São Paulo 13186-901 Company Overview Brazil Main Phone: 55 19 3887 9800 . EMS S.A sells generic pharmaceutical products in Brazil. It’s products include both Website: www.ems.com.br branded generics and INN generics. Type of Company: Private Company . EMS is the top-ranked domestic producer of generic pharmaceutical products in Business Head: Carlos Sanchez (Owner) Latin America. EMS has achieved this position through very rapid growth over years. . EMS’ portfolio of 2600 products includes analgesics, antibiotics, anti-inflammatories, Summary Financials ($ millions) antihypertensive, anti-anemics, immunosuppressants, contraceptives, and others. Revenue (2015) $4,200 . It serves hospitals, clinics, and health agencies. Many of EMS’ Rx products are distributed through pharmacies. EBITDA (2015) NA . EMS has also started Brace Pharma which invests in innovative Imputed Value $16,464 companies worldwide in partnership with Ray Schinazzi, one of the world’s leading Notes: A $4bn revenue estimate is from the Brace Pharma website as of September 2015. This number is assumed to be innovators in . for FY 2014. Confirmed by EMS. Based on historical growth but also adjusting for recent weakness in the Brazil market, Torreya . EMS has over 1500 sales reps in Brazil who make over 5mm medical visits a year. has estimated $4,200 in revenue for 2015 (5% growth only). . EMS exports its products to Latin America, Africa, Asia, MidEast, Canada and Europe. Brace also reported $3500mm in revenue for 2013. Wikipedia indicates that 2012 revenue was 2700mm. Imputed market . Founded 52 years ago, EMS began its history with the São Bernardo plant do value is computed as 2015 EMS revenue times the median Campo (SP) in 1964, expanded to Hortolandia (SP) in 1999 and implemented the multiple for comparable publicly traded generic companies. Center in 2002. More recently, EMS expanded to Ranking (as of Feb 27, 2016) Manaus where it built a high volume formulation facility called the Novamed with capacity to produce more than 18 billion tables a year. Generic Value Rank #8 . EMS has more than 7,000 employees. Generic Revenue Rank #7 . EMS S.A. was founded in 1964 and is based in Hortolândia, Brazil.

49 #9: Abbott Established Pharmaceuticals Division (EPD)

Company Details Address: Abbott Product Operations AG Hegenheimermattweg 127 4123 Allschwil Company Overview Switzerland . Abbott’s Established Pharmaceuticals Division (EPD), headquartered in Basel, Main Phone: +41 61 487 02 00 Switzerland, is a leader in the sale of branded generics in emerging markets. Website: www.abbott.com . Operational sales in the company’s 14 key emerging markets, which include Brazil, Type of Company: Public Company Segment China, Russia and India, have grown rapidly over the last five years. Business Head: Michael Warmuth . EPD brings value to its patients and customers through a growing portfolio of high- Summary Financials ($ millions) quality established pharmaceutical products and by building country-specific portfolios of trusted products to suit local needs. Revenue (2015) $3,720 . EPD has a broad portfolio of established pharmaceuticals – high-quality, affordable EBITDA (2015) $711 branded generic medicines that have been successfully treating patients for many Imputed Value $14,880 years. This portfolio covers several therapeutic areas, including gastroenterology, Notes: The revenue and EBITDA number for 2015 was women’s health, cardiology, metabolic disorders and primary care: • Cardiology and obtained from Abbott's 2015 financials in the segment data metabolic: Lipanthyl® (), Omacor®, Teveten®, Tarka®, Synthroid®, section of its press release for Q4 2015 results (Jan 28, 2015). Imputed market value is computed as 2015 revenue times the Isoptin® • Primary care: Klaricid®, Influvac®, Serc®, Luvox®, Brufen® • Women’s median multiple for comparable publicly traded generic health: Duphaston®, Femoston® • Gastroenterology: Creon®, Adomet®, companies. Duphalac®, Dicetel® patient needs. . Abbott made two substantial strategic acquisitions in 2014 to expand its presence in the generic pharmaceuticals market in emerging economies. The company bought Ranking (as of Feb 27, 2016) Chile-based CFR Pharmaceuticals for $2.9 billion in May 2014, followed by Russian Generic Value Rank #9 pharmaceutical company Veropharm for $631 million in June 2014. Generic Revenue Rank #9 . Abbott was founded in 1888 and employs approximately 69,000 employees in 150 countries.

50 #10: Hengrui

Company Details Address: Jiangsu Hengrui Medicine Co., Ltd. Lianyungang Eco & Tech Development Zone Lianyungang, Jiangsu Province 222047 Company Overview China . Jiangsu Hengrui Medicine Co., Ltd. (“Hengrui”) researches, manufactures, and sells Website: www.hrs.com.cn pharmaceutical products in China. Type of Company: Public Company . Hengrui is the largest Chinese pharmaceutical company that is not state owned. Exchange and Ticker: SHSE:600276 Business Head: Piaoyang Sun . Hengrui is the top marketer of generic cancer drugs and injectables in China. . It offers antineoplastic, angiomyocardiac, antibiotic, and other drugs in the form of Summary Financials ($ millions) tablets, injectables, injections, oral solutions, capsules, and ointments. Revenue (2015) $1,401 . Hengrui has revenue of $1.2 billion and is highly profitable. . The company stock was officially listed on the Shanghai Stock Exchange in 2000. EBITDA (2015) $376 . Its API and finished drugs manufacturing facilities have passed Chinese GMP Enterprise Value $13,235 authentication. In addition, its plants which manufacture API of Etoposide, Notes: Data for Revenue and EBITDA for 2015 were based on Ifosfamide and Irinotecan HCl, and finished drugs of Irinotecan HCl Injection, the company’s first nine months reported through Sep 30, 2015 and then annualized. Market value estimate as of Feb 27, 2016. Letrozole Tablet and Cabapentin Capsule have passed the USFDA inspection. . Hengrui was the first Chinese manufacturer of injectables to export its products to the U.S., Europe and Japan. . Hengrui has over 2900 sales reps that cover 80 major cities across China. . Hengrui invests 10% of its annual revenue in research and development, and has Ranking (as of Feb 27, 2016) constituted a thorough innovation system with R&D centers and clinical division Generic Value Rank #10 in New Jersey, Shanghai, Chengdu, and Lianyungang. Its R&D is focused on cancer drugs and endocrinology. Generic Revenue Rank #32 . Hengrui was founded in 1970 and is headquartered in Lianyungang, China.

51 #11: Lupin

Company Details Address: Laxmi Towers, B Wing Mumbai, Maharashtra 400051 Company Overview India . Lupin’s generic drug business encompasses the entire pharmaceutical value chain, Website: www.lupin.com ranging from branded and generic formulations, APIs, advanced drug Type of Company: Public Company delivery systems to biotechnology. Exchange and Ticker: BSE:500257 . Lupin’s drugs reach 70 countries with a footprint that covers advanced markets Business Head: Vinita Gupta (CEO) such as USA, Europe, Japan,Australia as well as emerging markets including Summary Financials ($ millions) India, the Philippines and South Africa. . Lupin has been an outstanding financial performer, exhibiting consistent 20%+ Revenue (2015) $1,831 annual growth driven by its record of developing new generic drugs and in EBITDA (2015) $603 commercial globalization. Enterprise Value $11,019 . Lupin markets generic drug formulations in the areas of cardiovascular, Notes: Data for Revenue and EBITDA for FY ending March 31, diabetology, asthma, pediatric, central nervous system (CNS), gastro-intestinal, 2015. Financials converted to USD from INR at exchange rate anti-diabetic, anti-infective, pain, anti- tuberculosis, cephalosporin, gynecology, and on Feb 27, 2016. Market value estimate as of Feb 27, 2016. other therapeutic areas. . Lupin has a growing branded business in the U.S. and is investing in NCEs. . The company was formerly known as Lupin Chemicals Limited and changed its name to Lupin Limited in 2001. Ranking (as of Feb 27, 2016) . Lupin was founded in 1968 by Dr. Desh Bandhu Gupta, then an Associate Professor at BITS-Pilani, Rajasthan. Named after the Lupin flower because of its Generic Value Rank #11 inherent qualities and what it personifies and stands for, the company was Generic Revenue Rank #23 created with a vision to fight life-threatening infectious diseases and to manufacture drugs of the highest social priority.

52 #12: Fresenius Kabi IV Generic Drugs

Company Details Address: Fresenius Kabi Rx Segment Else-Kröner-Straße 1 Bad Homburg, Hessen 61352 Company Overview Germany Phone: 49 61 72 686 0 . The Kabi division of Fresenius specializes in intravenously administered generic Website: www.fresenius-kabi.com drugs, infusion therapies, clinical nutrition, and related medical devices, achieved in Type of Company: Public Company Segment 2015 total sales of €5.95 billion. Business Head: Mats Henriksson . Kabi’s generic IV drug revenues in 2015 were $2.7 billion making it a giant in hospital generics on a global basis. It’s revenues are diversified, roughly a third each Summary Financials ($ millions) in North America, Europe and the emerging markets. Revenue (2015) $2,669 . Fresenius Kabi markets more than 100 product families for critically and chronically ill patients. EBITDA (2015) $561 . Fresenius Kabi has a global footprint with 61 sales and marketing organizations, 72 Imputed Value $10,667

production sites and 16 R&D centers around the world. Notes: The Fresenius Kabi IV segment includes generic IV drugs . revenue as reported in Fresenius financials which were Fresenius Kabi has more than 33,000 employees. reported on February 24, 2016. Imputed market value is . Fresenius Kabi Oncology Plc. It produces generics of intravenous oncology products computed as 2015 Kabi IV drugs revenue times the median multiple for comparable publicly traded generic companies. such as Paclitaxel, Irinotecan, , Gemcitabine, Cytarabine, Carboplatin, Revenue in Euros was converted to USD at the Feb 27, 2016 Topotecan, and Epirubicin. Kabi is also a world leader in cytotoxic API exchange rate. EBITDA is computed using the EBITDA margin of 21% reported for the Kabi segment times IV drug revenue. manufacture. . Fresenius Kabi also does contract for companies all around the Ranking (as of Feb 27, 2016) globe. With over 40 years of experience in contract manufacturing, we have developed active partnerships with an impressive number of top-tier pharmaceutical Generic Value Rank #12 multinationals as well as start-ups and biotech companies. Generic Revenue Rank #12 . Kabi’s roots go back more than 100 years to the founding of Fresenius SE in Bad Homburg, Germany, where the company is headquartered today.

53 #13: Aspen Pharmacare

Company Details Address: Aspen Pharmacare Holdings Limited Aspen Park Durban, KwaZulu-Natal 4019 Company Overview South Africa Main Phone: 27 31 580 8600 . Aspen Pharmacare Holdings Limited, through its subsidiaries, manufactures, markets, Website: www.aspenpharma.com and distributes branded and generic pharmaceutical products. Type of Company: Public Company . Aspen is publicly-traded and headquartered in South Africa. The company is Exchange and Ticker: JSE:APN increasingly focused on globalization and has expressed interest in entering the U.S. Business Head: Stephen Saad generic market. Summary Financials ($ millions) . The company offers branded, generic, over-the-counter, consumer, and infant nutritional products. It provides various product types, including tablets, capsules, Revenue (2015) $2,236 eye drops, injectable products, oral contraceptives, form-filled seals, suppositories, EBITDA (2015) $553 liquids, creams, ointments, infant nutritional products, and specialist active pharmaceutical ingredients. Enterprise Value $9,864 . Aspen is represented in 47 countries including South Africa, Australia, Hong Kong, Notes: The revenue and EBITDA for 2015 are for the FY ending on June 30, 2015. Converted from South African Rand Malaysia, Philippines, Taiwan, Japan, Kenya, Nigeria, Tanzania, Uganda, Ireland, United to USD on Feb 26, 2016 exchange rate. Arab Emirates, Germany, France, the Netherlands, Mauritius, Brazil, Mexico, Venezuela and the United States. . Acquisitions announced in recent years further extended the Group’s emerging market presence to the Commonwealth of Independent States (“CIS”), comprising Russia and the former Soviet Republics as well as to Central and Eastern Europe. Ranking (as of Feb 27, 2016) . Aspen has 26 manufacturing facilities at 18 sites on 6 continents and more than 10 Generic Value Rank #13 000 employees. Generic Revenue Rank #18 . Aspen Pharmacare Holdings Limited was founded in 1997.

54 #14: ENDO Generics / Par Pharma

Company Details Address: Endo International plc Minerva House Dublin, Co. Dublin 4 Company Overview Ireland . Endo International plc is a global specialty pharmaceutical company focused on Website: www.endo.com improving the lives of patients while creating value. Endo develops, manufactures, Type of Company: Public Company markets and distributes quality branded pharmaceutical and generic Exchange and Ticker: NASDAQ:ENDP pharmaceutical products as well as over-the-counter medications through its Business Head: Paul Campanelli operating companies. Summary Financials ($ millions) . ENDO’s Par Pharmaceuticals (generic) segment offers products in the pain management, urology, CNS disorders, immunosuppression, oncology, women’s Revenue (2015) $2,436 health, hypertension, generic lidocaine patch, and other markets. EBITDA (2015) NA . Par has a strong manufacturing base in both Alabama and New York. Imputed Value $9,549 . Par has an excellent pipeline of U.S. generic products including numerous first to Notes: Data for Revenue for FY ending Dec 2015. These data file products and Paragraph IV’s. were obtained from ENDO’s YE press release dated Feb 29, . The combination in 2015 of ENDO’s Qualitest and newly acquired Par 2016. We annualized Q4 revenue to obtain full year revenue given the integration of Par Pharma in financials took place in businesses (known collectively as Par Pharmaceutical) expands Endo’s generics Q3 2015. Imputed value is computed as 2015 revenue times the business to be an industry leader. ENDO had previously acquired Boca and Dava median revenue multiple for publicly traded generic companies in Feb 2016. Pharma. . Par Pharmaceuticals sells its generics directly to large pharmacy chains; and Ranking (as of Feb 27, 2016) through wholesale drug distributors to pharmacies, hospitals, governmental agencies, and physicians. Generic Value Rank #14 . Endo International plc was founded in 1920 and is headquartered in Dublin, Generic Revenue Rank #15 Ireland.

55 #15: Celltrion

Company Details Address: Celltrion, Inc. 23, Academy-ro Incheon, - 406-840 Company Overview South Korea Main Phone: 82 3 2850 5000 . Celltrion, Inc. develops and produces various therapeutic proteins including Website: www.celltrion.com oncology treatment drugs by bioengineering mammalian cell-culture technology. Type of Company: Public Company . Exchange and Ticker: A068270 (KOSDAQ) Celltrion is a world leader in biosimilar monoclonal antibodies and was the first Business Head: Jung-Jin Seo company to get a biosimilar antibody approved in 2013. . Celltrion markets Remsima, the first approved biosimilar mAb and tumor necrosis Summary Financials ($ millions) factor antagonist that is used to treat rheumatoid arthritis, ankylosing spondylitis, ulcerative colitis, adult Crohn’s disease, plaque psoriasis, and psoriatic arthritis. Revenue (2015) $452 . Celltrion’s product pipeline includes CT-P6 for the treatment of breast cancer; CT- EBITDA (2015) $192 P10 for the treatment of non- Hodgkin’s lymphoma and rheumatoid arthritis; and Enterprise Value $9,534 CT-P27, a therapeutic antibody for treatment against universal influenza, which has Notes: Data for Revenue and EBITDA for FY ending December completed Phase IIA clinical trials. 31, 2015. Market value estimate as of Feb 27, 2016. . Celltrion is also jointly developing mAbs for rabies with the Center for Disease Control and Prevention in the United States; antibodies against various virus subtypes and drug resistant hepatitis B viruses; Anti–GP88, mAbs for treatment of breast and lung cancer diseases; antibody-drug conjugate. In addition, it offers contract manufacturing services to biopharmaceutical companies. Ranking (as of Feb 27, 2016) . Celltrion boasts one of the world's lagest state-of-the-art mammalian cell culture plants with a total production capacity of 140,000L. These plants were designed and Generic Value Rank #15 constructed to comply with US FDA cGMP and EMA GMP regulations. Generic Revenue Rank #106 . The Company’s head office is located in the Incheon Free Economic Zone. . Celltrion, Inc. was founded in 2002.

56 #16: Perrigo Prescription Pharmaceuticals Segment

Company Details Address: Perrigo Company Public Limited Company Treasury Building, lower Grand Canal Street Dublin, Co. Dublin 2 Company Overview Ireland Main Phone: 353 1 709 4000 . Perrigo Company plc markets generic drugs and OTC products worldwide. Website: www.perrigo.com . Perrigo operates through Consumer Healthcare (CHC), Branded Consumer Type of Company: Public Company Healthcare (BCH), Prescription Pharmaceuticals (Rx Pharmaceuticals), Specialty Exchange and Ticker: NYSE: PRGO Business Head: Joe Papa Sciences, and Other segments. . Perrigo’s business is mainly focused on OTC products. We have valued its Summary Financials ($ millions) prescription pharmaceutical segment which is almost entirely comprised of generic Revenue (2015) $1,073 products. . Perrigo’s Prescription Pharmaceuticals segment offers generic and specialty EBITDA (2015) $540 pharmaceutical prescription drugs in various dosage forms, such as creams, Imputed Value $7,868 ointments, lotions, gels, shampoos, foams, suppositories, sprays, liquids, suspensions, Notes: Calendar year data for 2015 and 2014 prescription solutions, powders, controlled substances, injectables, hormones, women's health pharmaceuticals are included. These data were reported in a Feb 18, 2016 press release and a bridge 10KT on Feb 25, 2016. This products, oral solid dosage forms, and oral liquid formulations; and ORx products. segment is valued using an EBITDA multiple given its abnormally high margin. EBITDA for the segment is computed as operating . Perrigo serves wholesalers; retail drug, supermarket, and mass merchandise chains; income plus an adjustment for noncash items as reported in the hospitals; and pharmacies. 10KT of 39% of depreciation and amortization less a non-cash tax adjustment. We used 39% because 39% of 2015 CY operating . Perrigo’s Rx segment is particularly strong in the topicals and opthalmics area. income of Perrigo was from the Rx segment. Perrigo offers the largest line of generic dermatologicals in the United States. Ranking (as of Feb 27, 2016) . Perrigo was the subject of a hostile takeover in 2015 from Mylan who was interested in its large global OTC business and its generic exposure. Perrigo’s Generic Value Rank #16 shareholders voted down the Mylan offer. Generic Revenue Rank #45 . Perrigo was founded in 1887 and is headquartered in Dublin, Ireland.

57 #17: Sanofi Generics

Company Details Address: 54, rue La Boétie 75008 Paris France Company Overview Main Phone: +33 (0)1 53 77 40 00 Website: www.sanofi.com . Sanofi S.A. is a global pharmaceutical company headquartered in Gentilly, France. Type of Company: Public Company . The company was formed as Sanofi-Aventis in 2004 by the merger of Aventis and Exchange and Ticker: NYSE: SNY Business Head: Olivier Brandicourt Sanofi-Synthélabo, which were each the product of several previous mergers. It changed its name to Sanofi in May 2011. Summary Financials ($ millions) . Sanofi has a substantial generics business which comprises Zentiva in Europe (recently renamed Sanofi Generics); Winthrop in the United States; Medley in Brazil; Revenue (2015) $1,984 Genfar with a presence across South America; and Global Pharma based in Dubai. EBITDA (2015) $496 . Medley, based in Brazil, has approximately $1 billion in revenue while Zentiva does Imputed Value $7,775 does approximately $1 billion Euros in annual sales. Revenues of Winthrop in the Notes: Sanofi disclosed revenues of its generics business as being U.S. are also substantial while revenues of Genfar and Global Pharma are less 1805mm Euros in 2014. Given that Sanofi has indicated that this important. business is under some pressure we have estimated flat revenues for 2015. This was on p. 210 of its document entitled "Meet . Key transactions historically have been: Sanofi Management". Sanofi has indicated that its EBIT margins are approximately 20%. We have thus estimated EBITDA margins to – Sanofi acquired Genfar S.A. in 2012. At the time of the acquisition Genfar was be approximately 25%. Imputed value is computed as 2015 the second largest generic company in sales and leader in units in Colombia and revenue times the median revenue multiple for publicly traded generic companies in Feb 2016. has a commercial presence in Venezuela, Peru, Ecuador and ten other countries in Latin America Ranking (as of Feb 27, 2016) – In 2009 Sanofi acquired Medley of Brazil for it’s generics business – In 2014 Sanofi Acquired Globalpharma of Dubai for it’s generics business Generic Value Rank #17 – In 2008 Sanofi Acquired the Czech Generic drug maker Zentiva NV for $2.6B Generic Revenue Rank #22 . Sanofi has indicated that it is open to divesting its European generic operations.

58 #18: Dr. Reddys

Company Details Address: Dr. Reddy's Laboratories Ltd. 8-2-337, Road No. 3 Hyderabad, Andhra Pradesh 500034 Company Overview India Main Phone: 91 40 4900 2900 . Dr. Reddy’s Laboratories Limited operates as a vertically integrated generic Website: www.drreddys.com pharmaceutical company across the world. Type of Company: Public Company . Dr. Reddy’s has three segments: Global Generics, Pharmaceutical Services and Exchange and Ticker: BSE:500124 Business Head: Satish Reddy Active Ingredients (PSAI), and Proprietary Products. The Global Generics segment produces and markets finished pharmaceutical products as branded formulations or Summary Financials ($ millions) generic finished dosages. This segment also has a biosimilars business. . The PSAI segment develops active pharmaceutical ingredients (APIs) and Revenue (2015) $2,368 intermediaries, which are used as ingredients for finished pharmaceutical products. EBITDA (2015) $562 . Dr. Reddy’s has 10 manufacturing facilities of which 5 are FDA inspected. These Enterprise Value $7,317 facilities have capacity to generate over 25 billion generic units a year. Notes: Data for Revenue and EBITDA for FY ending March 31, . Dr. Reddy’s generics business offers over 200 high-quality generic versions of 2015. Market value estimate as of Feb 27, 2016. expensive innovator medicines—at a fraction of the cost—in over 20 countries around the world. Key therapeutic areas include anti-infective, metabolic disorders, and pain and inflammation. . Dr. Reddy’s recently received an FDA warning letter that impacted 3 manufacturing facilities in India. The company is aggressively moving to remedy the situation. Ranking (as of Feb 27, 2016) . Dr. Reddy’s generic business is 54% North America; 15% India and 12% Russia. . Dr. Reddy’s has achieved 18% annualized top line growth over the last decade. Generic Value Rank #18 . Dr. Reddy’s has approximately 20,000 employees. Generic Revenue Rank #16 . Dr. Reddy’s was founded in 1984 and is headquartered in Hyderabad, India.

59 #19: Sinopharm Rx Segment

Company Details Address: China National Pharmaceutical Group Corp. No.20 Zhichun Road Haidian District Beijing, China 100088 Company Overview Main Phone: 86 10 6203 3332 Website: www.sinopharm.com . Sinopharm is the largest integrated pharmaceutical company in China with more Type of Company: Private Company than $40 billion in revenue in 2015; more than $2bn in EBITDA and approximately Exchange and Ticker: BSE:500124 $5 billion in cash. Business Head: Zheng Hong . Sinopharm is a state-owned enterprise that is supervised by the State-Owned Assets Supervision & Administration Commission Of The State Council. Summary Financials ($ millions) . Sinopharm’s activities are principally in pharmaceutical distribution. However, among its many subsidiaries are three companies which are publicly listed that sell non- Revenue (2015) $2,043 patented RX medicines in the fields of biosimilars, vaccines and Traditional Chinese EBITDA (2015) NA Medicine. Imputed Value $7,208 . Sinopharm owns 11 wholly-owned or holding subsidiaries, and 6 listed companies: Notes: Data for Revenue is based on 2014 financials. Market Sinopharm Group Co., Ltd., China National Medicines Co., Ltd., Sinopharm Accord value estimate as of Feb 27, 2016 and is computed as the sum of Medicines Co., Ltd., Beijing Tiantan Biological Products Co., Ltd., Shanghai Shyndec the market caps of Beijing Tiantan Biological Products Co., Ltd., Shanghai Shyndec Pharmaceutical Co., Ltd. and China Traditional Pharmaceutical Co., Ltd. and China Traditional Chinese Medicine Co. Ltd. Chinese Medicine Co. Ltd. Imputed value is computed as 2015 . The Sinopharm Rx Segment includes Beijing Tiantan; Shanghai Shyndec and China revenue times the median revenue multiple for publicly traded generic companies in Feb 2016. TCM. . In Chinese pharmaceutical industry, Sinopharm is the first, the largest and the most Ranking (as of Feb 27, 2016) successful enterprise to cooperate with foreign companies. Sinopharm has established dozens of successful Sino-foreign pharmaceutical joint ventures since Generic Value Rank #19 1980’s, e.g. China Otsuka Pharmaceutical Co., Ltd. , Sino-Swed Pharmaceutical Co., Generic Revenue Rank #20 Ltd. (SSPC), Xian Janssen Pharmaceutical Co., Ltd., Sino-American Squibb Pharmaceutical Co., Ltd. and Suzhou Capsugel Ltd.

60 #20: Hikma

Company Details Address: Hikma Pharmaceuticals PLC 13 Hanover Square London, Greater London W1S 1HW Company Overview United Kingdom Main Phone: 44 20 7399 2760 . Hikma Pharmaceuticals PLC develops, manufactures, and markets a range of generic Website: www.hikma.com and in-licensed pharmaceutical products in solid, semi-solid, liquid, and injectable Type of Company: Public Company final dosage forms in the Middle East and North Africa, the United States, Europe, Exchange and Ticker: LSE: HIK the United Kingdom, and internationally. Business Head: Said Dawarzah . Hikma Pharmaceuticals is a multinational pharmaceutical company based in London, Summary Financials ($ millions) that manufactures branded and non-branded generic and in-licensed pharmaceutical products. Revenue (2015) $2,058 . Hikma was first listed on the London Stock Exchange in 2005 is now a constituent EBITDA (2015) $327 of the FTSE 100 Index. Hikma is the largest regional pharmaceutical company in the Enterprise Value $6,503 MENA region and has a major presence in the U.S. generics marketplace. Notes: The 2015 revenue estimate is pro forma for the Roxane . Hikma was founded in Amman, Jordan in 1978 by Samih Darwazah. acquisition. In particular we annualized first half reported revenue . Hikma operates through three segments: Branded, Injectables, and Generic. The for Hikma and then added $650mm in Roxane 2015 revenue (based on a news story issued in 2015). Branded segment offers over 450 products across a range of therapeutic areas. These products are largely branded generics. The Injectables segment markets over 200 branded and non-branded products in many dosage strengths. This segment also offers sterile liquid, lyophilized, and cytotoxic products. The Generics segment provides 11 products in 44 dosage strengths and forms for various therapeutic Ranking (as of Feb 27, 2016) areas including analgesic, anti-infective, anti-inflammatory, cardiovascular, CNS, Generic Value Rank #20 respiratory, hormonal, and others. Generic Revenue Rank #19 . Hikma Pharmaceuticals PLC was founded in 1978 and is based in London, United Kingdom.

61 #21: Apotex

Company Details Address: Apotex, Inc. 150 Signet Drive Toronto, Ontario Company Overview M9L 1T9 . Apotex is the largest Canadian owned pharmaceutical company with over 10,000 Main Phone: 1-800-268-4623 Website: www.apotex.com employees globally and with estimated sales of approximately $2 billion. Type of Company: Private Company . With its manufacturing sites, Apotex can produce up to 24 billion dosages per year. Business Head: Barry Sherman (Chairman) . It produces 300 medicines in 4,000 dosage forms and formats that are exported to 115 countries. Summary Financials ($ millions)

. Extensive investments in Canadian facilities include over 3 million square feet in Revenue (2015) $1,630 manufacturing and R&D facilities in Richmond Hill, Toronto, Etobicoke, Brantford, Windsor and Winnipeg. EBITDA (2015) NA . The success of Apotex has been built not only on developing a broad product Imputed Value $6,388 portfolio but also in launching the difficult to do generics — taking on challenges of Company disclosed revenues of approximately $2bn CAD in March 2015 press release. Press release: developing difficult APIs and formulations, products with difficult clinical and http://www.apotex.com/global/about/press/20150316.asp. The regulatory pathways, and patent challenges. company reports revenue of more than $2bn on its website in Feb 2016. Because IMS MIDAS shows $3bn in gross revenue we . Apotex operates along 3 core Lines of Business: (1) Global Generics: Responsible suspect that Apotex’s revenue is considerably higher than reported. We converted CAD to USD using exchange rates as for the delivery of the generics portfolio to all global markets; (2) Global Specialty of Feb 27, 2016 and imputed the value by multiplying 2015 Pharma: Responsible for the development, manufacturing and global revenue by the median multiple for public traded comparables. commercialization of Biosimilars and other specialty products and (3) Global Active Ranking (as of Feb 27, 2016) Pharmaceutical Ingredients (API). . Apotex has 500 products under development and will spend $2 billion in R&D Generic Value Rank #21 between 2015 and 2025. Generic Revenue Rank #25 . Apotex Inc. was founded in 1974, and is the largest Canadian-owned pharmaceutical company.

62 #22: GSK Mature Brands

Company Details Address: GlaxoSmithKline Pharmaceuticals PLC 980 Great West Road Brentford Middlesex TW8 9GS Company Overview United Kingdom Main Phone: 44 20 8047 5000 . GlaxoSmithKline plc is a global pharmaceutical company with expertise in Website: www.gsk.com therapeutic areas, including respiratory, anti-virals, central nervous system, Type of Company: Public Company cardiovascular and urogenital, metabolic, anti-bacterials, and emesis, dermatology, Exchange and Ticker: LSE: GSK rare diseases, immuno-inflammation, vaccines, and HIV. Business Head: Andrew Witty . GSK also has a large separately managed portfolio of mature brands. Summary Financials ($ millions) . These brands are off-patent and are generic for all intents and purposes. . GSK went through a sale process for its established products brands in 2014 that Revenue (2014) $1,600 was eventually pulled. During the sale process the dimensions of the established EBITDA (2014) NA products portfolio became public. Imputed Value $6,272 . The drugs that were in the sale process had a revenue base of approximately $1.6 Notes: The 2014 revenue estimate was disclosed in a Reuters billion. story in 2014 describing a potential sale of the GSK products. Imputed value is computed as 2015 revenue times the median . GSK established brands include antidepressant Paxil, migraine treatment Imitrex, revenue multiple for publicly traded generic companies in Feb Zantac for stomach acid and Zofran for nausea. 2016. One could argue that this process overstates the value of these products since they are declining. However, these products . Our revenue estimate understates the size of the portfolio because there are are considerably more profitable than traditional generics. additional revenues from these products that have not been publicly disclosed for emerging markets. Ranking (as of Feb 27, 2016) . GlaxoSmithKline plc was founded in 1935 and is headquartered in Brentford, the United Kingdom. Generic Value Rank #22 Generic Revenue Rank #27

63 #23: Cipla

Company Details Address: Cipla Limited Cipla House Mumbai, Maharashtra 400013 Company Overview India Main Phone: 91 22 2482 6000 . Cipla is a global generic pharmaceutical company which uses cutting edge Website: www.cipla.com technology and innovation to meet the everyday needs of all patients. Type of Company: Public Company . Its portfolio includes more than 1,500 generic pharmaceutical products provided to Exchange and Ticker: NSEI:CIPLA Business Head: Yusuf Hamied (Chairman) 150 countries across therapeutic categories with one quality standard globally. . Cipla has an 80 year history and a well-respected brand for delivering generics. Summary Financials ($ millions) . Cipla’s emphasis on access for patients was recognized globally for the pioneering role played in HIV/AIDS treatment as the first pharmaceutical company to provide a Revenue (2015) $2,018 triple combination anti-retroviral (ARV) in Africa at less than one dollar a day and EBITDA (2015) $442 thereby treating many millions of patients since 2001. Enterprise Value $6,164 . Cipla acquired Invagen, a U.S. generic company, from Hetero in February 2016 The revenue and EBITDA for 2015 are annualized based on which adds $230mm in revenue. Cipla’s press release announcing the Invagen quarterly results. These numbers are converted from INR to acquisition noted: “The acquisition of InvaGen pharmaceuticals also provides Cipla USD based on exchange rates as of Feb 27, 2016. with about 40 approved ANDAs, 32 marketed products, and 30 pipeline products which are expected to be approved over the next 4 years. In addition, InvaGen has filed 5 first-to-file products. Dosage forms include immediate release, modified release and extended release tablets and capsules. With a manufacturing footprint of ~350,000 sq.ft of GMP area, InvaGen has 3 units located in Long Island, NY, with a Ranking (as of Feb 27, 2016) total production capacity of 12 billion tablets and capsules per annum and about Generic Value Rank #23 500 employees. “ Generic Revenue Rank #21 . Cipla was founded in 1935 Dr. K A Hamied, with a vision to make India self- sufficient in healthcare.

64 #24: Zydus Cadila

Company Details Address: Limited Satellite Cross Roads, Sarkhej-Gandhinagar Hwy Ahmedabad Gujarat 380015 Company Overview India Main Phone: 91 79 2686 8100 . Cadila Healthcare Limited engages in the research, development, production, Website: www.zyduscadila.com marketing, and distribution of pharmaceutical products. Type of Company: Public Company . Exchange and Ticker: BSE:532321 This company is sometimes confused with Cadila Pharma which is a separate player Business Head: Pankaj Patel with a common lineage, also based in Ahmedabad. To avoid confusion, we refer to Cadila Healthcare as Zydus Cadila. Summary Financials ($ millions) . Zydus’ portfolio includes active pharmaceutical ingredients, veterinary, and human generic drug formulations. Revenue (2015) $1,384 . Zydus has over 20 manufacturing sites which produce more than 15 bn pills / year. EBITDA (2015) $283 . Zydus markets its products in the U.S. through its Accord Health subsidiary. Enterprise Value $6,164

. Zydus has seen 43 fold in revenue over the last 20 years. Notes: The 2014 revenue estimate was disclosed in a Reuters story in 2014 describing a potential sale of the GSK products. . Zydus is developing a pipeline of 24 biologics comprising 20 biosimilars and 4 novel Imputed value is computed as 2015 revenue times the median biological products; and new drugs in cardio-metabolic, inflammation, pain, and revenue multiple for publicly traded generic companies in Feb 2016. One could argue that this process overstates the value of oncology therapeutic areas. Recently, Zydus launched Exemptia, the first biosimilar these products since they are declining. However, these products for Adalimumab, the largest selling therapy worldwide for inflammatory arthritis. are considerably more profitable than traditional generics. . Zydus also has a portfolio, an animal health portfolio and a formidable NCE portfolio. Zydus is also the only Indian pharma company to launch its own patented Ranking (as of Feb 27, 2016) NCE – Lipaglyn, which has been approved for the diabetic dyslipidemia. Generic Value Rank #24 . Zydus has over 16,000 employees and is headquartered in Ahmedabad, India. . The group’s origin can be traced to 1952 when it was founded by Late Mr. Generic Revenue Rank #33 Ramanbhai B. Patel.

65 #25: Aurobindo

Company Details Address: Limited Water Mark Building Hyderabad, Andhra Pradesh 500 084 Company Overview India Main Phone: 91 40 6672 5000 . Aurobindo, headquartered in Hyderabad, India, is a generics and API manufacturing Website: www.aurobindo.com powerhouse: Type of Company: Public Company – High-growth company with a large ANDA pipeline in multiple therapeutic areas Exchange and Ticker: BSE:524804 and formulations Business Head: N.Govindarajan – Major presence in the US with a rapidly growing injectable business Summary Financials ($ millions) . Increased revenues from nearly $950M in FY2013 to over $2 Billion in 2015. Revenue (2015) $1,930 – Generic sales account for 65% of revenue, with API manufacturing accounting for the rest EBITDA (2015) $466 . Aurobindo’s manufacturing facilities are approved by several leading regulatory Enterprise Value $5,942 agencies like US FDA, UK MHRA, Japan PMDA, WHO, Health Canada, MCC South Notes: Data for Revenue and EBITDA for FY ending March 31, Africa and ANVISA Brazil. The company’s robust product portfolio is spread over 6 2015. Market value estimate as of Feb 27, 2016. INR financials are converted to USD using exchanges rates as of Feb 27, 2016. major therapeutic/product areas encompassing Antibiotics, Anti-Retroviral, CVS, CNS, Gastroenterological, . US generic sales comprised over 60% of total generic sales in FY2014, with sales over $550M . AuroMedics, arm that markets injectable products in the US, is expected to grow by Ranking (as of Feb 27, 2016) over 120% and account for 27% of total Aurobindo sales in FY2015 Generic Value Rank #25 . Unlike other Indian domiciled generic players, Aurobindo does not have a significant domestic presence Generic Revenue Rank #23 . Aurobindo began operations in 1988-89 with a single manufacturing unit

66 Appendix A-1. About Torreya Partners

67 An Investment Bank Focused on Pharmaceuticals 19 Senior with 34 Employees Across 2 Offices + Strong Global Coverage and deep sector expertise focused on long-term interest of our clients Advisors Most with industry experience.

Examples of Transaction Work in 2015 Top Rank #1 Ranking by Number of Strategic Advisory Transactions Closed in the Pharmaceutical Sector Worldwide in 2015. 25 Deals closed in 2015 across the pharma sector. $7.6 Billion in transactions closed in 2015 across the pharma sector. Over $100bn in transactions across 180+ deals closed since 2007. Top ranked across numerous subsectors in this time.

68 Selected Torreya Advisory Roles in Branded Generics, Formulations and API

Sale of ANDA Acquired assets of Acquisition of Sale of ANDA Sale to Portfolio to Portfolio to Divestiture of injectable assets of (Vertice Pharma) Bedford LLaboratories Terms Undisclosed Terms Undisclosed $10 mm CAD$47 mm $25 mm + Profit Share

February 2016 January 2016 December 2015 November 2015 November 2015 July 2015

Sale of ANDA Acquisition of US Rights ® Sale of Zonalon Advisor to owner in sale Sale of Pessac Liquids / portfolio to to Zonegran® from Sale of ANDA to to Intermediates Plant to Portfolio to Unnamed Buyer

$9.5 mm $2.1 bn $26 mm $18 mm $90 mm February 2015 January 2015 October 2014 October 2014 October 2014 September 2014

Acquisition of Six Off Sale of US Rights of Acquisition of Donnatal Sale of ANDA Sale to Patent Drugs to form Naprelan to Sale to from portfolio to Actient Pharma from

$12.5 mm + Terms Undisclosed $275 mm $87 mm $325 mm profit share $7 mm

May 2014 December 2013 November 2013 October 2010 July 2010 December 2007

69 Details on Selected Recent Advisory Roles

Torreya is one of the most active advisors in the generic space

. IGI acquired Alevda Pharma, a . A public generic pharma acquired Canadian injectable generic a portfolio of injectable ANDAs company for CAD$ 47 million in from Hikma cash . Hikma was required by the FTC to Acquisition of . This acquisition expands IGI’s Sale of ANDA divest the portfolio to satisfy as geographic footprint and brings it Portfolio to one of the closing conditions for a complementary portfolio the pending acquisition of Bedford . The company sees the opportunity . The goal was to sign the deal to register and sell each other’s Public Generic quickly while maximizing the value CAD$47 mm products cross-border Pharma . Torreya acted as financial advisor . Torreya acted as financial advisor to Hikma and identified a highly October 2015 to IGI October 2015 motivated buyer

. Crown raised $20 million in senior . ANI acquired 22 previously secured term loan from Hayfin marketed ANDAs from Teva for Advisors $25 million in cash at closing a % . This allows Crown to double its Sale of ANDA of future gross profit from sales force and focus on growing Debt Financing from Portfolio to product sales upon re-launch its branded and generic . This acquisition expands ANI’s prescription businesses pipeline to 68 products with a . Hayfin has also agreed to partner total market value of ~$4 billion with the management on further $25 mm + Profit . Torreya acted as financial advisor $20 mm acquisitions Share to Teva following our work on its . Torreya acted as financial advisor last ANDA divestiture to ANI in September 2015 to Crown Labs July 2015 December 2013

70 Excellence in Both M&A and Licensing Transactions

Torreya has advised on more than 50 M&A transactions… … and is the advisor of choice on business development deals.

Sale to Sale of FXR Sale to License of TGFβ Programs to

$605 mm $688 mm $517 mm $470 mm ($95 mm upfront) ($538mm upfront) ($37mm upfront) July 2015 July 2014 October 2015 January 2015

Sale to Sale to License WW Rights Oncology of pidilizumab to Partnership with

$557 mm $250 mm $550 mm ($75 mm upfront) ($35 mm upfront) $335 mm

July 2014 September 2013 October 2014 August 2013

71 Disclaimer

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