Generic Pharmaceutical Industry 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 drug
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

T
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
an unprecedented set of recent patent expirations. Industry Acquisitions in 2015
This growth was accompanied by the rapid expansion of emerging players 1. Teva’s Acquisition of Allergan’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. Pfizer’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 United States 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
Amdipharm for $3.5 billion
The U.S. generic industry continued to experience dramatic change and
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 / Novartis 36,495

that the underlying factors driving valuations for private companies 4 Sun Pharma 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 Mylan 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 biosimilar 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 Perrigo 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
drugs 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 manufacturing 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

880 893
859
830 813
793
766

551 563

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

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 retail 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 on Technologies 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
controlled release solid oral dose products.
of globalization has
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
Cipla 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, Brazil 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.
Emerging market 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

Medical Care Spending (Current $ billion)

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
extension (medical care). global basis from plants that have a consistent high
10,000
quality of production. Plants that make products for
GDP (Current $ billion)

1,500
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
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.
These benefits coincide with the advent of big data generic sector.
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

45
Deal Count Dollar Volume ($ billions) $78.0 80

70

40

60

35

32
50

30

27
40

25

30

20

$17.1 $15.5 20

$12.1
$7.2
15

10

$3.3 $2.1 $3.2 $12.0

10

8 8
7 0

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 Teva Pharmaceuticals 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 Actavis Australian Gx Business Amneal NA NA NA NA NA
03/05/15 Flecainide 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 Sanofi Generics Public Segment France 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 Apotex 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 Biopharmaceuticals 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 Engineering 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 Philippines 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 Vaccines, 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 biosimilars. Sandoz is a leading
Notes: Market value estimate tied to 2015 Sandoz segment
global provider and producer of essential anti-infective medicines 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 medications 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
Generic Value Rank #3
will raise the value of the segment considerably.
 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
Type of Company: Privately held
formulations, manufacturing of API and formulations and distribution.
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
revenues have grown substantially for Yangtze River. Imputed
major therapeutic areas with great emphasis in the fields of Infection, CNS, GI, 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 innovation, 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
EBITDA (2015) NA
distributed through pharmacies.
 EMS has also started Brace Pharma which invests in innovative biopharmaceutical 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 drug development. 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
multiple for comparable publicly traded generic companies.
Campo (SP) in 1964, expanded to Hortolandia (SP) in 1999 and implemented the
Research and Development 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
section of its press release for Q4 2015 results (Jan 28, 2015).
metabolic: Lipanthyl® (fenofibrate), Omacor®, Teveten®, Tarka®, Synthroid®, 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
companies.
health: Duphaston®, Femoston® • Gastroenterology: Creon®, Adomet®,
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
the company’s first nine months reported through Sep 30, 2015
Ifosfamide and Irinotecan HCl, and finished drugs of Irinotecan HCl Injection, 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
Generic Revenue Rank #32
drugs and endocrinology.
 Hengrui was founded in 1970 and is headquartered in Lianyungang, China.

51
 #11: Lupin

Company Details
Address:
Lupin Limited
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, Oxaliplatin, Gemcitabine, Cytarabine, Carboplatin, Revenue in Euros was converted to USD at the Feb 27, 2016
Topotecan, Docetaxel 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 manufacturings 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
Enterprise Value $9,864
pharmaceutical ingredients.
 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.
EBITDA (2015) $540
 Perrigo’s Prescription Pharmaceuticals segment offers generic and specialty
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
revenue times the median revenue multiple for publicly traded
 The Sinopharm Rx Segment includes Beijing Tiantan; Shanghai Shyndec and China 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
for Hikma and then added $650mm in Roxane 2015 revenue
 Hikma operates through three segments: Branded, Injectables, and Generic. The (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
Main Phone: 1-800-268-4623
 Apotex is the largest Canadian owned pharmaceutical company with over 10,000 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,
EBITDA (2015) NA
Windsor and Winnipeg.
 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.
Revenue (2014) $1,600
 GSK went through a sale process for its established products brands in 2014 that
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:
Cadila Healthcare 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 vaccine 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.
Generic Revenue Rank #33
 The group’s origin can be traced to 1952 when it was founded by Late Mr.
Ramanbhai B. Patel.

65
 #25: Aurobindo

Company Details
Address:
Aurobindo Pharma 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 Sale to Acquisition of Sale of ANDA
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 to Zonegran® from
Sale of Pessac Liquids / portfolio to
to to Sale of ANDA
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 September 2014
October 2014 October 2014

Acquisition of Six Off

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

$12.5 mm + Terms Undisclosed $275 mm

$325 mm profit share $87 mm
$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
Debt Financing from sales force and focus on growing product sales upon re-launch
Portfolio to
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 to Teva following our work on its
Share
 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 License of TGFβ Sale of FXR

Sale to
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
$335 mm $550 mm
($75 mm upfront) ($35 mm upfront)

July 2014 September 2013 October 2014 August 2013

71
 Disclaimer

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(together “Torreya Partners”) for the exclusive use of the party to whom Torreya Partners delivers this presentation (the “Company”) in connection with an actual or potential mandate or engagement, and may not be used
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Company. Torreya Partners assumes no responsibility for independent verification of such information and has relied on such information being complete and accurate in all material respects. No representation, warranty or
undertaking, express or implied, is made and no responsibility is accepted by Torreya Partners as to or in relation to the accuracy or completeness or otherwise of these materials or as to the reasonableness of any other
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suffered by any person as a result of relying on any statement contained in these materials or any such other information. None of these materials, the information contained in them or any other information supplied in
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prepared by or reviewed and discussed with the managements of the Company and/or other potential transaction participants or obtained from public sources, we have assumed that such estimates and forecasts have been
reasonably prepared on bases reflecting the best currently available estimates and judgments of such managements (or, with respect to estimates and forecast obtained from public sources, represent reasonable estimates).
There is no guarantee that any of these estimates and projections will be achieved. Actual results will vary from the projections and such variations may be material. Nothing contained herein is, or shall be relied upon as, a
promise or representation as to the past or future. Torreya expressly disclaims any and all liability relating or resulting from the use of this presentation. Torreya Partners assumes no obligation to update or otherwise review
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affiliates and agents regardless of location. This presentation speaks only as of the date it is given, and the views expressed are subject to change based upon a number of factors, including market conditions and the Company’s
business and prospects.

This presentation has been prepared on a confidential basis solely for the use and benefit of the Company; provided that the Company and any of its employees, representatives, or other agents may disclose to any and all
persons, without limitation of any kind, the tax treatment and tax structure of the transaction and all materials of any kind (including opinions or other tax analyses) that are provided to the Company relating to such tax
treatments and tax structures. Distribution of this presentation to any person other than the Company and those persons retained to advise the Company, who agree to maintain the confidentiality of this material and be
bound by the limitations outlined herein, is unauthorized. This material must not be copied, reproduced, distributed or passed to others at any time without the prior written consent of Torreya.

This presentation has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instrument. The Company should not construe the
contents of this presentation as legal, tax, accounting or investment advice or a recommendation. The Company should consult its own counsel, tax and financial advisors as to legal and related matters concerning any
transaction described herein. Torreya Partners does not provide any tax advice. Any tax statement herein regarding any U.S. federal or other tax is not intended or written to be used, and cannot be used, by any taxpayer for
the purpose of avoiding any penalties. Any such statement herein was written to support the marketing or promotion of the transaction(s) or matter(s) to which the statement related. Each taxpayer should seek advice based
on the taxpayer's particular circumstances from an independent tax advisor. This presentation does not purport to be all-inclusive or to contain all of the information that the Company may require. No investment, divestment
or other financial decisions or actions should be based solely on the information in this presentation.

The distribution of these materials in certain jurisdictions may be restricted by law and, accordingly, recipients represent that they are able to receive this memorandum without contravention of any unfulfilled registration
requirements or other legal restrictions in the jurisdiction in which they reside or conduct business. By accepting these materials, the recipient agrees to be bound by the foregoing limitations.

Insofar as these materials originate in the United Kingdom or are capable of having an effect in the United Kingdom (within the meaning of section 21 of the Financial Services and Markets Act 2000) they are directed only at
classes of recipient at whom they may lawfully be directed without contravening that section or any applicable provisions of the Conduct of Business Sourcebook of the Financial Conduct Authority, including persons of a kind
described in Article 19 (Investment professionals) or Article 49 (High net worth companies, unincorporated associations etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended)
and are not intended to be distributed or passed on, directly or indirectly, to or relied or acted on, by any other class of persons.

Torreya Partners (Europe) LLP, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is not acting for you in connection with any potential transaction(s) described in these materials
and thus will not be responsible for providing you the protections afforded to clients of Torreya Partners (Europe) LLP or for advising you in connection with any potential transaction(s) as described in these materials except
and unless subject to a subsequent specific written agreement relating to such potential transaction(s) between you and Torreya Partners (Europe) LLP.

Torreya Partners (Europe) LLP is authorised and regulated by the Financial Conduct Authority

Securities offered through Financial West Group, member FINRA/SIPC. Torreya Partners LLC and Financial West Group are unaffiliated entities.

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