Company presentation to Max Zeller Söhne AG January 2013

1. Ebsa pharma – your turnkey solution to the Chinese marketYour participation in a Potential and Ever-Growing Medical & Pharmaceutical Market in China Company presentation to Max Zeller Söhne AG January 2013 1

2. Contents • Services, medical and sales network • Key figures of Chinese healthcare sector • Features of pharmaceutical market in China • Successful case of market introduction and sales 2

3. Services, medical and sales network Services to European Pharmaceutical Lab • Drug and Medical device registration with SFDA  Planning  Dossier preparation  Translation(s)  Clinical trial(s) IDL registration – Import drug license (Class III, IIa, IIb medical device license) • Drug and medical device marketing and distribution in China  Product introduction  Distribution  Terminal sales 3

4. Services, medical and sales network Organizational Chart 4

5. Services, medical and sales network 5

6. Services, medical and sales network 6

7. Services, medical and sales network Ebsa pharma’s success is driven by 138 sales representatives and 5 marketing specialists. Our business geographical market area stretches over 14 provinces of which 8 are the most important in relation to current and expected future significant developments. Ebsa pharma ’s presence in key and sub-prime markets Heilongjiang • Beijing • Guangdong (Dongguan, Guangzhou, Shenzhen) • Henan (Luoyang, Zhengzhou) • Hunan • Jiangsu (Nanjing, Suzhou) • Shandong (Jinan, Qingdao, Yantai) • Shanghai • Zhejiang (Hangzhou, Ningbo) • Fujian (Fuzhou, Xiamen) • Guangxi (Guiloin, Nanning, Liuzhou) • Hubei • Shanxi • Sichuan • Tianjin Jilin Liaoning Xinjiang Beijing Inner Mongolia Tianjin Hebei Shanxi Qinghai Shandongg Ningxia Gansu Jiangsu Shanxi Henan Shanghai Anhui Tibet Hubei Chongqing Sichuan Zhejiang Jiangxi Hunan Fujian Guizhou Taiwan Yunnan Guangdong Guangxi Hainan 7

8. CAGR=8% CAGR=11% CAGR=16% Key figures of Chinese healthcare sector Total health expenditure in China witnessed steady growth in the past few years • 1996-2009 (US$ 1 bn) Source: According to official estimates, figures from China Statistical Yearbook, Espicom Business Intelligence and other institutions are more upbeat; as a whole, Chinese market presented strong growth in the past few years and based on good macroeconomic situation, improving personal ability to pay and enhancing individual’s attention on health, the growth will continue. 8

9. Key figures of Chinese healthcare sector Estimated by IMS, the pharmaceutical industry will grow significantly over the next 10 years, leading China into the second largest global pharmaceutical market behind USA. China’s domestic growth and global market size between 2001-2020. Increase by 17% between 2001-2010 and by 15.5% between 2011-2020 USA USA USA • Pharmaceutical market in China will amount to 800 bn Yuan in 2013; it will amount to 2-3 trillion Yuan in 2020 to rank second in the world. • Key driving factors: •  Continuous economic growth • and awareness of population’s • health consciousness; •  Added investment in health • care reform favours the • growth potential; •  Stake of aging population • increases. China Japan Japan Germany Japan Germany France France UK Italy Italy UK China Spain Spain Canada Canada Mexico China Turkey Source: IMS Health

10. Features of pharmaceutical market in China At present, hospitals take the lead in medical sales while retail pharmacies tend to increase their market share in future. However, imported and high priced drugs will continue to be mainly distributed in large-scale hospitals. • Changes in market shares of pharmaceutical sales in terminal market • The percentage of drug consumption in • medical institutions will decline as a result • of various factors: • The policies about the separation of prescribing and dispensing have been gradually carried out. • The phenomenon of “patients buy medicine in pharmacy with prescription”, namely, policies about separated management of prescription and OTC drug, will realize the separation of drugs in hospital and pharmacy. • The emerging of medical care designated pharmacy solves the worries of consumers to buy medicine in pharmacy. • Pharmacy is allowed to diversify operations, so the investment in pharmacies increase to a certain extent. Share of retail channel 55% 45% Share of hospital channel After 2015 (Forecast) (Forecast) 10 Source: URCmarket survey

11. 9,420 8,299 2674 2479 5198 4903 977 962 2008 2009 Features of pharmaceutical market in China Hospitals are the largest terminal clients of medical consumption and remain constant in numbers for the past few years. In addition, hospitals of upper class, witnessed small differences in numbers. Changes on number of major medical institutions (10,000] Changes on number of hospitals of different classes (10,000) (During 2008-2009) (During 2005-2009) Others 其他 Clinic Grade I 一级 Grade II 二级 Health centre Grade III Hospital 三级 11 Source: Data from Ministry of Health; Roland Berger analysis

12. Features of pharmaceutical market in China It is seen from pharmaceutical consumption that the Grade III hospital exceeds the Grade II hospital by four times. However, the hospital quantity of the former is about one fifth of the later, therefore they are similar in pharmaceutical consumption. Annual pharmaceutical consumption of a hospital in various grades [ten thousand Yuan] Annual total pharmaceutical consumption of hospital in all grades [hundred million Yuan] Grade III Grade II Inferior to grade II Grade III Grade II Inferior to grade II 12 Source: Data from Ministry of Health

13. 15% Beijing Shanghai 30% Guangzhou 14% Hangzhou Nanjing 9% Qingdao, Jinan 13% 9% 11% Others Features of pharmaceutical market in China Medical markets in China are mainly concentrated in coastal and developed cities. Source: The data is from commercial delivery condition of a large-scale multinational company. It is reflected hereby that hospitals are unreasonable in sales status. However, it can be judged that it is reasonable to have medical market especially the high-end medical market in developed cities and coastal areas. 13

14. Features of pharmaceutical market in China It takes more than 5 years in Chinese market for a product to become matured from its launch. Example Schematic diagram: life cycle curve of pharmaceuticals Example: compound danshen dripping pills reaches to mature stage by 9 years. CAGR29% Market mature period CAGR58% Swift growth period >8.2 hundred million CAGR138% Market introduction period 1.5hundred million • About 4years • 5-10 years • 1-2 Years Duration • Terminal excitation • Channelgathering • Deep distribution • Pay attention to maintenance of customer loyalty index • Consider introduction of new drugs • Great market investment force • Channel developing • Medicare public relation Market investment 1. 44million Market share • Take share of opponents • Maintain market share 94’ 95’ 98’ 00’ 04’ • Increase market share 14

15. Indication: peripheral nerve injury caused by poisoning of normal hexane Product medicament form and specification: 2000 units, powder-injection Product price: 168 Yuan/piece Product features： New compound, national category I new drug, biological agent Indication is narrow, therefore it is impossible to form sale scale in indication popularization Self-paying drug and not entering into NDRL The product is less in curative effect material and low in doctor cognitive degree There is only one enterprise manufacturing like products - Wuhan Hitecin Pharmaceutical Co., Ltd. with all-round management mode adopted. Product positioning: The only drug in promoting orientated growth of injured neurocyte Sale mode: Control terminal specialization popularization mode Successful case of market introduction and sales Successful case: Nerve growth factor of rat (NGF – brand 恩经复） ---- CNS 15

16. Product Research: It is reported in literature that the product can promote orientated growth of neurocyte in the laboratory The product is large in molecular weight. Although there is laboratory report for the product in penetrating blood-brain barrier. However, we found out through deep interviewing with doctors that most of them think that the product is difficult in penetrating blood-brain barrier. It is the initial launching product, therefore there is less clinical data in promoting the product There is only one like product with central nerve restoration of nerve internal medicine as main function Product positioning and objective market: The only drug in promoting orientated growth of injured neurocyte Main objective hospitals: Grade A class three large-scale hospital Main departments for product: Paediatrics Orthopaedics Rehabilitation Department Main diseases cured by the product Peripheral nerve injury (including peripheral nerve injury caused by trauma and peripheral nerve injury intercurrent with other disease) Newborn infant brain paralysis (newborn infant blood-brain barrier is not mature and can be penetrated by macromolecular substance) Successful case of market introduction and sales Product research and product positioning objective market: marketing starting point is to learn product 16

17. Product conception spread plan and execution: Establish market budget and decomposition Seek and confirm opinion leader from product spread industry Seek and confirm nationwide expert lecturers and communicate with them Seek and confirm regional expert lecturers and communicate with them Confirm product conception spread items and fabricate related lecture material Preparation of slide Preparation of advertisement leaf Establish market produce conception spread plan and implement the plan Nationwide conference plan: professional meeting plan in sponsoring related institutes; nationwide tour lecture plan Regional conference plan: annual meeting sponsor plan of related institutes from leading markets; regional tour lecture plan Sales representative promotion tool and brand prompt preparation based on product positioning Sales team product training plan and execution Successful case of market introduction and sales Marketing Execution： Product conception spread and sales promotion plan of market department based on product research and product strategy 17

18. Establishing sales plan based on market strategy and execute the plan: Confirmation and decomposition of sale index Confirmation and decomposition of sales budget Establishment and execution of working standard for sales manager/representative Confirm list of objective hospital and hospital development plan and execution Confirm objective doctor standard and objective doctor development plan and execution Working content training of sales representative Slide lecture training Training of product leaf use Training of face-to-face visiting Sales promotion plan and execution Establishment and execution of round-table conference and department slide lecture plan Regional conference plan: annual meeting sponsor plan of related institutes from leading markets; regional tour lecture plan Establishment and transmission of sale team incentive plan based on marketing strategy Tracing of sale team action: good result can be obtained only after good plan is performed Successful case of market introduction and sales Marketing execution: Product conception spread and sales promotion plan of market department based on product research and product strategy 18

19. 80 70 70 66 65 60 60 50 40 40 30 24 20 12 10 0 03 04 05 06 07 08 09 Successful case of market introduction and sales Sales Curve for Rat Nerve Growth Factor Unit: piece Unit: piece Remark: The product was introduced in 2004 and swift growth was maintained in the consecutive 3 years. It maintains the first market share in four like products launched in 2006. 19

20. Thank you Look forward ---- Just do it ! • Screen and finalize drug or medical device • We do the market potential and forecast • We sign registration agreement • We sign distribution agreement after getting SFDA approval • We enter the market and sell • We grow together • We succeed together! Contact: Georges Zhang +86 139 01 63 45 09 zhang@ebsapharma.com www.ebsapharma.com Shanghai sales center: Floor 1, Bldg G, Shanghai Info Park, 1188 WanRong Road Factory: No. 380 BaLing East Road, Yueyang City, HuNan province 20