LOTUS PHARMACEUTICAL CREATING A GLOBAL ONCOLOGY LEADER

1795.TT

November 2019

Except for historical information contained herein, the matters set forth in this

presentation are forward looking statements that are subject to risks and

uncertainties that could cause actual results to differ materially. These forward

looking statements are not based on historical facts but rather on

management’s expectations regarding future growth, results of operations,

performance, future capital and other expenditures, competitive advantages,

business prospects and opportunities. Statements in this presentation about

our future plans and intentions, results, level of activities, performance, goals

or achievements or other future events constitute forward looking statements.

Wherever possible, words such as “anticipate”, “believe”, “expect”, “may”,

“could”, “will”, “potential”, “intend”, “estimate”, “should”, “plan”, “predict”, or the

negative or other variations of statements reflect management’s current

beliefs and assumptions and are based on the information currently available

to our management. Investors are cautioned not to place undue reliance

on these forward looking statements, which are made as of the date of

this presentation and we assume no obligation to update or revise any

forward looking statements.

Safe Harbor

Statement

3

1 Lotus Today

2 Profitable Growth Strategy

3 2019YTD Results & Highlights

Today to Present:

4 Future Outlook

LOTUS TODAY

4

WELL-ESTABLISHED FOUNDATION FROM REGIONAL PLAYER TO GLOBAL CONTENDER…

5

1966-2014

• A local player servicing

mostly Taiwan domestic

market with “first in Taiwan”

generics

• Established formulation

skills across multiple drug

delivery systems

• Listed on TPEX since 2010

• Reshape portfolio to build key

franchises in APAC direct

markets

• Taiwan manufacturing site

inspected by US FDA, EU

EMA, Japan PMDA and TFDA

PIC/S

• Became a Taiwan Market

Biotechnology and Medical

Care Index stock in July, 2017

• Focused portfolio surrounding

oral oncology, hormonal and

special dosage forms

• Balanced growth from internal

and external opportunities

• Became a TPEX 50 Index

stock in April, 2018

• Relisting to TWSE in December,

2019

LOTUS BEFORE ALVOGEN

2014-2017

POST MERGER INTEGRATION

2018-2025

A STRONG GLOBAL CONTENDER

… WITH NICHE CAPABILITY TO PROVIDE TURNKEY SOLUTION WORLDWIDE

6

Comprehensive global

network offers Lotus and its

partners sustainable growth with

no boundaries

Capability of identifying

products with great market

potentials positions Lotus well as

a preferred partner

7

Transformation from a single market player to a full-scale global supplier of oncology drugs

Investing in pipeline, production facility and people

Building solid commerical platform in APAC regionA

IN ONLY 5 YEARS, WE HAVE DELIVERED…

Molecule product pipeline

20+Revenues

5 XB2B markets covered

130+Out-licensing & supply agreements

80+ INNs launched3

INNs contracted6+

Focusing on oncology and complex genericsz

PROFITABLE GROWTH STRATEGY

8

READY FOR TWO-PRONGED EXPANSION STRATEGY TO ENSURE PROFITABLE GROWTH

9

ASIAN MARKET GLOBAL PORTFOLIO

Solid foundation with stable cash inflow

Long term growth driver with better profits

MAXIMISING COMPANY

VALUE

REGIONALLY, WE WILL CONTINUE TO INVEST IN GROWTH OPPORTUNITIES

10

MARKET TRENDS

• Major changes with Chinese FDA have eventually led to rising awareness in data integrity, quality and the birth

of group purchasing policy that created industry consolidation

• Japan aims to have 80% generics penetration by 2021

• Compliance and innovation encouraged by Korea authorities

• Market access remains challenging across the region with fierce local competition while also an opportunity for

niche player

Thailand

Vietnam

Taiwan

Indonesia

Korea

India

Japan

China

2018E APAC Pharmaceutical Market Size ($bn)‘14-’18 CAGR

12%

1%

8%

5%

10%

4%

14%

5%

Source: IQVIA 2018 Dec

GLOBALLY, ONCOLOGY MARKET IS ONE OF FAST-GROWING THERAPEUTIC AREAS

11

Drug sales as a percentage of the total market

2015

Cancer/Onc/Hem

Infectious disease

Rheumatology

Cardiology

Diabetes/Obesity

HBV/HCV

CNS

Respiratory

Multiple Sclerosis

Epilepsy

GI/Ulcer

Opthalmology

Others

19%

World wide oncology sales: USD95b

2020 Forecast

Cancer/Onc/Hem

Infectious disease

Rheumatology

Cardiology

Diabetes/Obesity

HBV/HCV

CNS

Respiratory

Multiple Sclerosis

Orphan disease

Dermatology

Opthalmology

Others

25%

World wide oncology sales: USD163b

Source: SG Cowen

WE STRIVE TO PROVIDE AFFORDABLE ONCOLOGY CARE WORLDWIDE

12

Source: IQVIA global oncology trends 2019

2008 (481) 2018 (849)

Radiotherapies 0.8% (4) 0.2% (2)

Hormonals 2.5% (12) 1.9% (16)

Cytotoxins 16.8% (81) 7.3% (62)

Targeted small molecules 54.7% (263) 40.3% (342)

Targeted biologics 25.2% (121) 50.3% (427)

The pipeline of late phase oncology molecules, 2008-2018

Lotus’

target

markets

The cancer treatment landscape continued to evolve since 2014, and now includes new medicines targeting 23 different cancer types. This is creating

a substantial opportunity for global generic companies seeking to expand patient access and lower NHI budgets across the world

Lotus’ R&D engine and specialized manufacturing capabilities allow it to develop and produce a wide range of targeted small molecule treatments.

Coupled with the company’s broad commercial reach, this is an ideal candidate to address the expanded oncology opportunity globally

FOCUSED ONCOLOGY PORTFOLIO… 13

Focus on high value innovation for patients and customers

To be launched in 2019 - 2025

Generic Name Indication IQVIA market size (US$mn) Formulation BE & CT Submission Approval

1 Lenalidomide Multiple Myeloma血癌

Global: 10,000

2 Sunitinib GIST; inhibitor腸胃道間質腫瘤

Global ex US: 500

3 Enzalutamidesoftgel

Castration-resistant prostate

cancer去勢抗性的轉移性前

列腺癌

Global: 2,400

4 Methotrexate Chemo 癌症

US: 170

5 LP173

Late stage hepatocellular

carcinoma, renal cell carcinoma,

thyroid carcinoma

晚期肝細胞癌、晚期腎癌、分化型甲狀腺癌（皆非一線）

Global: 800

Settled in US and

launched in selected marketsOut-licensing scope

continues to expand

Submission in EU and TW

…FUELS FUTURE GROWTH 14

Focus on high value innovation for patients and customers

To be launched in 2019 - 2025

Generic Name Indication IQVIA market size (US$mn) Formulation BE & CT Submission Approval

6 LP661 Multiple Myeloma血癌

Global: 2,000

7 LP664

Ph+ CML in chronic phase

治療慢性期及費城染色體陽性的慢性骨髓性白血病成年患者

Global: 2,000

8 LP644

Castration-resistant prostate cancer

去勢抗性的轉移性前列腺癌

Global: 240

9 LP654Softgel

IPF特發性肺纖維化

Global: 1,000

• 2+ new projects under development in early stage

NON ONCOLOGY PORTFOLIO 15

Focus on high value innovation for patients and customers

To be launched in 2019 – 2022

Generic Name Indication IQVIA market size

(US$mn) Formulation BE & CT Submission Approval

1 Ulipristal Women health 女性保健

US: FTF

2 LP179 Women health 女性保健

Global: 300

3 AK-R311 OAB膀胱過動症

Global ex US: 500

• 1+ new projects under development in early stage

505(b)2 PIPELINE 16

Focus on high value innovation for patients and customers

To be launched in 2019 – 2022

Generic Name Indication IQVIA market size

(US$mn) Phase I Phase III Submission Approval

1 AK-R214Smoking Cessation

戒菸Global: 1,000

2 AK-R216 Type II diabetes第二類糖尿病

Global: 320

3 AK-R217 Type II diabetes第二類糖尿病

Global: 650

MAJOR LAUNCH 2019/2020 – QSYMIA 17

US FDA APPROVED 2nd GENERATION ANTI-OBESITRY DRUG

• Alvogen Korea has obtained marketing approval for Qsymia (phentermine and topiramate extended release) with 4 strengths from South Korea Ministry of Food and Drug Safety

(“MDFS”) in partnership with Vivus, NASDAQ listed biopharmaceutical company2

• Qsymia was approved by US FDA in 20123 with clinically proven results for long term weight management with the efficacy of –10.2 kg reduction (–9·8%, –10·4 to –9·3; p<0·0001)4,a

• Target market – traditional anti-obesity product (phenetamine) and 2nd generation anti-obesity products

• Plan of launch: End November 2019

1. KRW mn,, Source: IMS 2. Qsymia. Product Information. Ministry of Food and Drug Safety as of 31 Jul 2019, QSYMIA have 4 strengths (3.75/23mg, 7.5/46mg, 11.25/69mg, 15/92mg)

3. Qsymia Full Prescribing Information. Campbell, CA: VIVUS, Inc; 2017. 4. Gadde KM, Allison DB, Ryan DH, et al. Lancet 2011; 377: 1341–52

www.qsymia.com

a. Study design : randomized, double-blind, placebo controlled Study, 56-week phase 3 trial, randomly assigned overweight or obese adults (aged 18–70 years), with a body-mass index of 27–45 kg/m² and two or more comorbidities (hypertension, dyslipidemia, diabetes

or prediabetes, or abdominal obesity) to placebo, once-daily phentermine 7·5 mg plus topiramate 46·0 mg, or once-daily phentermine 15·0 mg plus topiramate 92·0 mg. Primary endpoints were the percentage change in bodyweight and the proportion of patients achieving

at least 5% weight loss.

* Saftey Information: Do not take Qsymia if you are pregnant, planning to become pregnant, or become pregnant during Qsymia treatment; have glaucoma; have thyroid problems (hyperthyroidism); are allergic to topiramate, sympathomimetic amines such as

phentermine, or any of the ingredients in Qsymia. See the end of the Medication Guide for a complete list of ingredients in Qsymia

Market

share –

68%

Phentermine1 9,162 9,942 9,399 8,830 9,386 10,381

Phendimetrazine1 3,887 4,359 4,092 3,822 3,817 4,303

Liraglutide1 4 281 1,692 5,554 10,547 9,217

0%

25%

50%

75%

100%

1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 1019

Phentermine Liraglutide Phendimentrazine Others

2Q 2019

2019YTD RESULTS & HIGHLIGHTS

18

2019YTD OPERATIONAL HIGHLIGHTS 19

Financial Results

Revenue +28%

9M’YoY

w/ gross margin

expanded by 2%

$6,046M

+28%

$864M

+147%

OP Income +147%

9M’YoY

as operating leverage

improves

Commercial Progress

$539M

+9.5x

Net Profits achieved

Record High

w/ EPS of NT$2.17

• 1st to market of 3 leading oncology products

• Lenalidomide in Europe in Feb

• Gefitinib in 20 European markets on patent expiry date

• Vinorelbine soft gel capsules in Europe in Jul

• 1st substantial launch of specialty generic in the US

• Buprenorphine/Naloxone sublingual film, generic of Suboxone

film, as 1st wave generics in Feb

• Strong global collaboration momentum for the export products with

leading partners

• 80+ licensing deals signed

• Strategically partnered with Fuji Pharma

• Excellent outcome from the inspections by 2 authorities and 6

business partners

• Strong supply chain management to maintain ~99% fulfillment of

customer orders

• 1st TWSE alternative listing approved in Nov

FUELED BY A MORE BALANCED PORTFOLIO MIX 20

• Covering Taiwan and Korea domestic

markets

• Proven market presence in TW/KR with

upside potentials from other counties

• Steady cash inflow with sales

contribution ~75% of 9M’19 revenue

• Targeting ASEAN as the next step

• Comprising Global Specialty Generics

and Export Turnkey Solution business

• Initial harvest from gSuboxone and

oncology licensing-out deals

• Rapid growth to contribute ~25% of

9M’19 revenue

• Substantial profitability drivers for long

term success

Global Portfolio

Asian Business

Revenue =

NT$mn5,902 6,424 6,429 6,046

-

20

40

60

80

100

Pre-Alvogen 2016 2017 2018 9M'19

Asian Market Global Portfolio

25%

75%

… AND TURNED INTO SOLID NUMBERS 21

Revenue (NT$mn) Gross and Operating Margin Net Profit (NT$mn)

2,310

5,522 5,902 6,424 6,429 6,046

-

2,000

4,000

6,000

8,000

2014 2015 2016 2017 2018 9M'19

50%58% 56%

48% 49% 51%

-19%

8% 4% 8% 7%14%

-40%

-20%

0%

20%

40%

60%

80%

2014 2015 2016 2017 2018 9M'19

Gross Margin OP Margin -544

161

-111

65124

539

-600

-400

-200

0

200

400

600

2014 2015 2016 2017 2018 9M'19

3.48 3.71

3.50

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

FY2018 6M'19 9M'19

WITH IMPROVING FINANCIAL STRUCTURE 22

EBITDA (NT$mn) NET DEBT/LTM EBITDA (X)

<3.5x as

committed

*EBITDA =EBIT + Depreciation + Amortization + Non-cash provisions

LTM EBITDA = last 12 months rolling

1,076

1,346

269

449

0

200

400

600

800

1,000

1,200

1,400

1,600

FY2018 9M'2019 2018 AvgQ

2019 AvgQ

FUTURE OUTLOOK

23

NEAR TEAM DELIVERABLES ON TRACK TO FUEL Q4/2020 OUTLOOK

24

Further expand business opportunities with existing portfolio- 20+ contracts under discussion

Efficiently execute new launches from both internal R&D

resources as well as external licensing-in deals - 3+ new launches in Q4

Continuously investing in pipeline to cultivate future growth- 3+ R&D projects in early stage

WE CONTINUE TO BUILD THE LOTUS VALUE PATH 25

ASIAN MARKET GLOBAL PORTFOLIO

Solid foundation with stable cash inflow

Capitalizing well-established

domestic platforms in Korea and

Taiwan .

Exploring more growing

opportunities in other countries

Long term growth driver with better profits

Leveraging competitive portfolio

to enhance profitability profile

Delivering turnkey solution

worldwide with cost-efficient

products

MAXIMISING COMPANY

VALUE

26

APPENDIX

9M’19 I/S 27

Unit: NT$'000 9M'19 % 9M'18 % 9M' YoY Q3'19 % Q2'19 % QoQ

Revenue 6,046,466 100% 4,706,299 100% 28.5% 1,969,931 100% 1,893,864 100% 4.0%

COGS (2,972,709) (2,424,236) (938,727) (930,402)

Gross Profits 3,073,757 51% 2,282,063 48% 34.7% 1,031,204 52% 963,462 51% 7.0%

Total OPEX (2,209,878) 37% (1,931,761) 41% 14.4% (739,546) 38% (837,082) 44% -11.7%

Income from Operations 863,879 14% 350,302 7% 146.6% 291,658 15% 126,380 7% 130.8%

Non-OP Income (Exp)

Others 63,489 4,735 23,026 29,999

Finance Costs (242,795) (222,292) (90,736) (84,752)

Total Non-OP, net (179,306) (217,557) -17.6% (67,710) (54,753) 23.7%

Income Before Tax 684,573 11% 132,745 3% 415.7% 223,948 11% 71,627 4% 212.7%

Income Tax Expenses (145,535) (81,541) (23,930) (19,638)

Net Income (Loss) 539,038 9% 51,204 1% 952.7% 200,018 10% 51,989 3% 284.7%

EPS (NT$) 2.17 0.11 0.82 0.20

B/S AS OF SEP 30TH 2019 28

Unit: NT$'000 Sep-30, 2019 % Jun-30, 2019 %

Current Assets

Cash & Equivalents 1,110,661 6% 1,128,488 6%

A/R 1,070,534 6% 983,950 5%

A/R - Related Party 634,610 4% 603,777 3%

Other Receivables 40,775 0% 3,109 0%

Other Receivables - RP 97,552 1% 68,043 0%

Inventory 2,156,836 12% 2,373,271 13%

Others 939,520 5% 960,022 5%

Current Assets 6,050,487 34% 6,120,660 33%

Non-Current Assets

Investment 469,094 3% 497,257 3%

PP&E 1,786,889 10% 1,987,072 11%

Goodwill 5,898,473 33% 6,014,009 33%

Other Intangible Assets 2,735,730 15% 2,752,802 15%

Others 1,111,814 6% 1,045,146 6%

Total Assets 18,052,487 100% 18,416,946 100%

Unit: NT$'000 Sep-30, 2019 % Jun-30, 2019 %

Current Liability

ST Debts 440,000 2% 310,000 2%

A/P 689,734 4% 831,361 5%

A/P - RP 981,805 5% 1,211,651 7%

Other Payables 303,818 2% 286,602 2%

Other Payables - RP 158,400 1% 282,319 2%

Current portion of LT Debts 208,719 1% 215,933 1%

Others 273,331 2% 393,416 2%

Current Liability 3,055,806 17% 3,531,282 19%

Non-Current Liability

LT Debts 4,031,603 22% 3,050,767 17%

LT Debts - RP 2,326,125 13% 3,157,708 17%

Others 980,092 5% 1,013,404 6%

Total Liability 10,393,626 58% 10,753,161 58%

Equity

Stock 2,431,140 13% 2,431,140 13%

Paid-in Capital 6,588,034 36% 6,588,034 36%

Treasury Shares 0 0%

Accumulated Deficits (712,215) -4% (911,818) -5%

Others (650,106) -4% (445,211) -2%

Shareholders' Equity to Parent 7,656,853 42% 7,662,145 42%

Minority 2,008 0% 1,640 0%

Total Shareholders' Equities 7,658,861 42% 7,663,785 42%

Tatal Liabilities & Equities 18,052,487 100% 18,416,946 100%

TOP15 FOR 9M’2019 29

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

1 Buprenorphine/Naloxone film OUD 戒癮 1,075.0 - 2019 New launch

2 Goserelin (Zoladex) Breast cancer 乳癌 424.2 1%Exclusive marketing alliance with AstraZeneca KR;

launched Oct’16

3 Rosuvastatin/EzetimibeCardiovascular

389.5 -2% Dosage improved to 1/day降血脂與膽固醇

4 Calcium Polystyrene Sulfonate Nephrology 腎臟病 269.4 6%

5 Seroquel (Quetiapine) Schizophrenia 精神分裂症 252.3 14%Exclusive marketing alliance with AstraZeneca KR;

launched Oct’15

6 Sarpogrelate Anticoagulant 抗凝血 219.1 -38%

7 Desogestrel/EE (Mercilon)Oral contraceptive

口服避孕藥210.5 -1%

Acquired from Bayer; launched in May’16; changed

distributor in 2Q’19

8 Anastrozole (Arimidex) Oncology 癌症 159.7 7%Exclusive marketing alliance with AstraZeneca KR;

launched 4Q’16

9 Raloxifene (Evista) Osteoporosis 骨質疏鬆症 151.2 - 2019 new launch

10 Lenalidomide MM 多發性骨髓瘤 150.5 - 2019 New Launch, global export

11 Phentermine Anti-obesity 減肥 149.8 -5%

12 Bicalutamide Prostate cancer 攝護腺癌 148.1 -6%Exclusive marketing alliance with AstraZeneca KR;

launched Oct’16

13 Zoledronic Acid (Aclasta) Osteoporosis 骨質疏鬆症 108.9 -14%Acquired from Novartis; launched Apr’17; terminated

distributor in Taiwan in 2Q’19

14 Phendimetrazine Anti-obesity 減肥 100.5 -17%

15 Ibandronate D3 Osteoporosis 骨質疏鬆症 100.2 230%