Life-saving Anti-Infective Treatments

Table of Contents

• The Company

• Competencies and Services

• Facilities and Locations

• Product Portfolio

• Vancomycin and CMS Key Anti-Infective Franchises

• Our Customers

• Our Culture

• Xellia in Summary

2

The Company

3

Xellia at-a-glance

• Specialty pharmaceutical company focused on critical care therapies for life-threatening diseases

• Supplying both APIs and FDFs

• B2B sales to approx. 500 customers in 70 countries

• 50+ years’ expertise in supplying fermented and semi-synthetic products that are challenging to manufacture

• State-of-the-art production facilities in the United States, Europe and Asia with global regulatory approval and an unsurpassed compliance track record

• Continuously expanding product pipeline and geographic reach

• Wholly owned by Novo A/S and well financed with growing sales

• 2014: revenue was slightly above 200 MUSD and EBITDA adjusted for exceptional items was 8%

4

Our Heritage

Apothekernes Laboratorium AS was founded by pharmacists in Oslo

Apothekernes Laboratorium started production of penicillin, bacitracin and neomycin in Oslo

Apothekernes Laboratorium established in the US; market leader in bacitracin

Apothekernes Laboratorium acquired Dumex A/S, Copenhagen - bacitracin, polymyxin B, colistin, and amphotericin B

Alpharma formed by a merger of Apothekernes Laboratorium Inc, Apothekernes Laboratorium AS and Dumex; vancomycin R&D Start-up

Alpharma acquired SKW Biotech, Budapest; vancomycin and niche products

Alpharma API business acquired by 3i and members of management team; Xellia is born

Xellia’s facility in Taizhou, China obtained FDA approval to produce vancomycin

Novo A/S acquired the majority stake in the Xellia

Xellia acquires Fresenius Kabi’s lyophilized (freeze-dried) manufacturing facility in Raleigh, North Carolina,

1903 1952 1975 1983 1994 1998 2008 2009

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2013 2014

Our Team

• Management team: applying extensive, international pharmaceutical experience to drive business strategies and growth

• Quality and Regulatory Affairs: ensuring highest quality standards are met in production, products and procedures

• Research and Development: developing efficient processes, new FDFs, innovative delivery systems and advanced analytical tools

• Manufacturing: specializing in technologically difficult manufacturing processes including fermentation, purification, semi-synthesis and freeze-drying

• Sales and Marketing: building strong relationships with customers, responding with on-time delivery and premium quality products

Xellia’s highly skilled team thrive on a spirit of innovation, excellence and teamwork

6

Our Growth Strategy

2010 2015 2020

Building on strengths in API product franchises

Launching an injectable FDF pipeline

Forward integration of existing APIs to injectable FDFs

Longer term value: developing proprietary delivery systems

Pursuing an ambitious strategy in the injectable anti-infective market targeting 8 to 10% revenue (CAGR)

7

Competencies and Services

8

R&D: Delivering Valuable Products for the Future

• Focused on “difficult-to-develop” products with an intrinsic competitive advantage

1. Increasing barrier-to-entry (IP, technologies, product mix, containment etc.)

2. Value added IP position (innovative, patent-enabling development strategies including patent positioning and filing our own applications)

3. Limited competition (specialist technology, experience and “know-how”, niche products)

4. Cost competitive (superior technology)

5. First to market (speed is essential and critical for success)

• Creating a balanced and attractive new product pipeline

9

Manufacturing and Supply Capabilities with Exceptional Technical Support

• Excellence in manufacturing using:

• High-yielding microbial producer strains and efficient fermentation processes

• Robust purification processes, producing consistent high purity products

• Advanced analytical methods for monitoring quality and compliance to Pharmacoepial requirements

• Final handling expertise including all common drying technologies (filter-, vacuum-, freeze-, and spray-drying)

• Fill-finish capabilities for most vial sizes and high volumes

• Continuity of global supply and on-time delivery of competitively priced products

10

Contract Development and Manufacturing Services

• Services typically confined to:

• Xellia’s current products, where there may be a need for special API qualities or dosage forms

• Derivatives of Xellia’s current products, showing increased activity, extended spectrum, reduced toxicity or different mode of action

• New products (including NCEs) where Xellia may exploit established R&D and manufacturing capabilities

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Facilities and Locations

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Global Operations

Manufacturing sites

Sales offices

Other offices/R&D centres

Chicago, USA

Tokyo, Japan

Shanghai, P.R. China Zagreb, Croatia

Bangalore, India

Oslo, Norway Budapest, Hungary

Copenhagen, Denmark Taizhou, P.R. China

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Raleigh, USA

Xellia Manufacturing Sites

Outstanding quality track

record

Copenhagen, Denmark Amphotericin B Bacitracin and Bacitracin Zinc (sterilization only) Colistimethate Sodium Colistin Sulfate Polymyxin B Sulfate Tobramycin Sulfate Vancomycin (HCL and Base) Vancomycin vials (0.5g, 1.0g, 5g, 10g) Colistimethate sodium vials (1 miu, 2 miu, 150 mg) FDA: 2014 ISO 14001 OHSAS 18001

Budapest, Hungary Daptomycin Gramicidin Tyrothricin Vancomycin

FDA: 2014 ISO 14001 OHSAS 18001

Taizhou, P.R. China Vancomycin Bacitracin Bacitracin Zinc

FDA: 2015 ISO 14001 OHSAS 18001 14

Raleigh, USA Vancomycin Leucovorin Panhematin

FDA: 2014

Locations Copenhagen, Chicago, Singapore, Shanghai and Tokyo

Service Building strong relationships with major pharmaceutical companies

Responding with on-time delivery of premium quality products

Pro-actively driving fast-to- market entries

Sales and Marketing Offices

15

Product Portfolio

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. . . building an attractive pipeline based on standard dosage forms and unique delivery systems

A Balanced Portfolio of Specialized APIs and FDFs

2010 2015 2020

Building on strength in API product franchises

Launching an injectable FDF pipeline

Forward integration of existing APIs to injectable FDFs

Longer term value: developing proprietary delivery systems

17

Product Range

Active Pharmaceutical Ingredients (APIs)

Finished Dosage Forms (FDFs)

Novel Device Delivery Platforms

16 APIs

• Antibacterial agents for treatment of Gram-positive and Gram-negative infections

• Antifungal agents

• Corticosteroids

• Sterile and non-sterile API qualities

19 FDFs/10 Molecules

• Injectables

• Available in dry powder fill or freeze-dried vials

• Packaging

• Labelling

• Capsules

• Inhalation

4 Novel Device Delivery Platforms

• Aqueous Droplet Inhaler (ADI)

• Ready-To-Use (RTU) infusion bags

• SmartPak infusion bags

• Airless Metered Pump (AMP) topical delivery

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Novel Device Delivery Platforms

Airless Metered Pump (AMP) for topical delivery

Aqueous Droplet Inhaler (ADI)

SmartPak infusion bags (”jumbo vial”)

Ready-To-Use (RTU) infusion bags

• Accurate dosing

• No ”mess or spills”

• Licensed to Phoenix Group (New York, USA)

• Available for licensing outside USA

• Short administration time

• Portable (pocket size)

• Same efficacy at significantly lower dose of drug

• Reduced side effects – no coughing

• Handled by PharmAero (Xellia / Scandinavian Health Joint Venture)

• 100g drug versus standard 0.5-10g (eg. Vancomcyin)

• Ease of drug administration in hospitals

• Co-operation with ACS Dobfar (Italy)

• Drug and diluents in one dual chamber infusion bag

• Hospital use

• Less use of hospital staff time

• Reduced risk of mistakes in mixing and dosing

• Improved healthcare worker safety

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Tobramycin

vials

Caspofungin

vials

Amphotericin B

Caspofungin

Forward Integration from API to FDF

Tobramycin

Sulfate

CMS

Colistin

Polymyxin

Vancomycin

HCl Teicoplanin

Bacitracin Bacitracin

Zinc

Tyrothricin

Daptomycin

Polymyxin

vials

AP

I

CMS

vials

FD

F

Attractive FDF pipeline in

development Vancomycin

vials

Vancomycin

caps

Bacitracin

vials

Daptomycin

vials

Teicoplanin

vials

Gram-Negative Antibacterials

Antifungals Gram-Positive Antibacterials

Vancomycin

Base Gramicidin

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Development Pipeline and Filings

. . . continuously growing the pipeline beyond 2015

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• Since 2008, Xellia has shown an impressive increase in the number of new product filings

Super Generics

(ADI and RTU)

Injectable Patent

Challenges (P.IVs)

Injectable Specialty Generics

(containment products like penems and oncology)

Injectable Regular Generics (antibacterials and antifungals)

Xellia’s Balanced Pipeline – Products with an Intrinsic Competitive Advantage

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Vancomycin and Colistimethate Sodium (CMS)

. . . two of our life-saving anti-infective franchises

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Key facts In the USA, vancomycin is used for treatment of more than 70% of infections caused by methicillin-resistant strains of Staphylococcus aureus (MRSA) and more than 30% of Clostridium difficile treatments

Description Glycopeptide antibiotic

Active against a wide variety of Gram-positive bacteria

Target Staphylococcus ssp. including MRSA

Streptococcus ssp.

Clostridium difficile

Administration Injection

Oral

Vancomycin – Critical in Modern Medicine

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Colistimethate Sodium (CMS) – Emerging as a Sole Effective Antibiotic

Key facts Important treatment for pulmonary infections associated with critical and chronic diseases e.g. cystic fibrosis (CMS market larger in EU and ROW than USA)

Description Lipopetide antibiotic, prodrug of colistin

Active against Gram-negative bacteria

Target Acute Pseudomonas aeruginosa and Acinetobacter baumannii infections

Multiple Drug Resistant (MDR) Gram-negative infections (only treatment option)

Administration Inhalation

Injection

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Our Customers

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Global Customer Base

• Long-standing international customer base: ~500 active customers

• Top 20 customers account for 60% of sales

50% big and specialty pharma

50% generic

companies

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Worldwide Sales

• Undisputed leader in the US and Europe for products within Xellia’s product portfolio

• Holds 62 market authorizations in total, allowing business to grow in key markets

Asia

17%

Europe

29%

Latin

America

4%

USA

Canada

35%

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Middle

East

15%

Our Culture

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Xellia’s Values

• As one of the leading API companies in the world, the pace at Xellia is fast, the work is fun and we discover interesting challenges around every corner

• No matter where we work in or organization or what we do, we share common values that unite us making our company a special place to work

• We delight our customers

• We drive business results

• We collaborate across borders

• We have personal drive and commitment

• We think and act strategically and globally

• We have a supportive leadership philosophy

Protect the Patient - Protect our Environment

• Quality underpins every aspect of our business

• Demonstrated at every stage of product development, manufacture and distribution

• We continually endeavour to improve our social, ethical, environmental, health and safety responsibilities

• In full compliance with external laws and regulations

• We constantly work to ensure that Xellia operates in a responsible manner

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Responsiblity to Society – A partnership with SOS Children’s Villages

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• From January 2015 to January 2018, Xellia has entered a partnership with SOS Children’s Villages to provide full funding to the SOS Children’s Villages Kenya Eldoret Medical Centre.

• At the Eldoret Medical Centre:

• 10 employees

• 6000 patients annually

• Most common ailments: infections, Malaria, HIV and waterborne diseases

• Other outreaches: cancer screeening, HIV-testing, Malezi bora, door-to-door campaigns

• The medical centre works to treat, increase education and prevent life-threatening diseases within the community.

Responsiblity to Society - Xellia and SOS Children’s Villages

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• “It’s in our corporate DNA to help people in need, as we strive to contribute with the development of medicines to fight life-threatening diseases and ultimately save lives. The partnership with SOS Children’s Villages is felt by us as a natural fit for our company.” Carl-Åke Carlsson, CEO and President at Xellia

• At Xellia, we look forward to embarking on the journey alongside the SOS Children’s Villages Medical Centre in Eldoret Kenya, to reach less fortunate patients and provide them with the possiblity for a brighter and healthier future.

• At Xellia, a variety of activities will be placed into action during 2015 in order to launch our partnership with the SOS Children’s Villages and bring awareness to our social responsibility.

In Summary . . .

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Proven Track Record of Continued Growth

2000 2005 2010 2015 2020

FDF

API

35

Total Revenue (MUSD)

70

~200

~300

~500

135

Xellia - A Trusted Provider of Life-Saving Anti-Infective Treatments

• International specialty pharmaceutical company

• Supplying both APIs and FDFs to approx. 500 customers in 70 countries

• 50+ years’ expertise in supplying fermented and semi-synthetic products that are challenging to manufacture

• State-of-the-art production facilities with global regulatory approval and an unsurpassed compliance track record ensuring continuity of supply and on-time delivery of competitively priced products

• Continuously expanding product pipeline and geographic reach

36