TABLE OF CONTENTS EXPLANATORY NOTES 3 Glossary................................................................................................................................................................................... 3 Trademarks.............................................................................................................................................................................. 3 Currency.................................................................................................................................................................................. 3 Market Data............................................................................................................................................................................. 3 CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION 4 CORPORATE STRUCTURE 7 Name, Address and Incorporation........................................................................................................................................... 7 Governance.............................................................................................................................................................................. 7 Reorganization ........................................................................................................................................................................ 7 GENERAL DEVELOPMENT OF THE BUSINESS 8 DESCRIPTION OF THE BUSINESS 14 Intercorporate Relationships ................................................................................................................................................... 14 REPORTABLE SEGMENT SUMMARY TABLE 15 COMPETITION 15 CONCORDIA INTERNATIONAL 15 Overview ................................................................................................................................................................................. 15 Products................................................................................................................................................................................... 16 Asset Impairments................................................................................................................................................................... 16 Product Development and Production..................................................................................................................................... 17 Sales and Distribution ............................................................................................................................................................. 18 Key Markets, Growth and Marketing Strategy ....................................................................................................................... 18 United Kingdom...................................................................................................................................................................... 18 Intellectual Property Matters................................................................................................................................................... 19 Regulatory Matters.................................................................................................................................................................. 19 Launch of New Products......................................................................................................................................................... 20 CONCORDIA NORTH AMERICA 20 Overview ................................................................................................................................................................................. 20 Products................................................................................................................................................................................... 20 Asset Impairments................................................................................................................................................................... 21 Product Development and Production..................................................................................................................................... 21 Sales and Distributions............................................................................................................................................................ 22 Key Markets, Growth and Marketing Strategy ....................................................................................................................... 22 Intellectual Property Matters................................................................................................................................................... 24 Regulatory Matters.................................................................................................................................................................. 24 ORPHAN DRUGS 25 Overview ................................................................................................................................................................................. 25 Market Overview..................................................................................................................................................................... 25 PDT with Photofrin®.............................................................................................................................................................. 26 Existing Indications................................................................................................................................................................. 26 Other Developments................................................................................................................................................................ 26 DESCRIPTION OF CAPITAL STRUCTURE 27 Common Shares ...................................................................................................................................................................... 27 Stock Option Plan ................................................................................................................................................................... 27 Long Term Incentive Plan....................................................................................................................................................... 28 DIVIDEND POLICY 31 RATINGS 31 S&P ......................................................................................................................................................................................... 33 Moody’s................................................................................................................................................................................... 33 MARKET FOR SECURITIES 34 Trading Price and Volume....................................................................................................................................................... 34 Prior Sales ............................................................................................................................................................................... 34 DIRECTORS AND EXECUTIVE OFFICERS OF THE CORPORATION 37 Directors and Executive Officers, Positions and Security Holdings....................................................................................... 37 Shareholdings of Directors and Executive Officers................................................................................................................ 38 Biographies.............................................................................................................................................................................. 38 Corporate Cease Trade Orders or Bankruptcies...................................................................................................................... 40 Penalties or Sanctions.............................................................................................................................................................. 40 Individual Bankruptcies .......................................................................................................................................................... 40 Conflicts of Interest................................................................................................................................................................. 40 LEGAL PROCEEDINGS AND REGULATORY MATTERS 40 INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS 42 PROMOTER 42 AUDIT COMMITTEE 42 Reliance on Certain Exemptions............................................................................................................................................. 42 Audit Committee Oversight .................................................................................................................................................... 43 Pre-Approval Policies and Procedures.................................................................................................................................... 43 External Auditor Service Fees................................................................................................................................................. 43 MATERIAL CONTRACTS 43 INTEREST OF EXPERTS 45 TRANSFER AGENT AND REGISTRAR 45 RISK FACTORS 45 Risk Factors Related to