BALTIC STATES PHARMA MARKET OVERVIEW. Secondary sales analysis

BALTIC STATES PHARMA MARKET OVERVIEW Secondary sales analysis

Content Introduction General overview Sales dynamics in Baltic states 2009 2014 Generic / Originator drugs market share in Baltic states 2013 1Q-3Q Rx and OTC dispensing types drugs market in Baltic states, Lithuania, Latvia and Estonia 2009-2014 Hospitals and pharmacies segments market share Hospital segment Generic/ Originator medicine market share Pharmacy segment Generic/ Originator medicine market share TOP 10 Producers Lithuanian pharmacy and hospital market 2012 1Q 2013 3Q Latvian pharmacy and hospital market 2012 1Q 2013 3Q Estonian pharmacy and hospital market 2012 1Q 2013 2Q TOP 5 ATC3 categories Lithuanian pharmacy and hospital market 2012 1Q 2013 3Q Latvian pharmacy and hospital market 2012 1Q 2013 3Q Estonian pharmacy and hospital market 2012 1Q 2013 2Q 2

Meaning of abbreviation Volume measure of sales quantity; Value wholesales amount in Euros; CAGR Compound Annual Growth Rate refers to the year-over-year average growth rate of an measured event over a specified period of time; YoY Year-over-year comparison method of evaluating two or more measured events to compare the results at one time period with those from another time period (or series of time periods), on an annualized basis; YTD year to date refers to measured event characteristics in time period beginning of January 1 st to today s date or specified date; MS market share. 3

Introduction The following analysis are based on Lithuania, Latvia and Estonia pharmaceutical market secondary sales (wholesales) data collected by PharmaZOOM project developed by SoftDent. Analysis period includes: 2009 2013 3Q in Latvia and Lithuania 2009 2013 2Q in Estonia Type of medicines are restricted to OTC and Rx (Food supplements and medicine supplies are not included). 4

General overview Sales dynamics in Baltic states 2009 2014 160 140 120 100 80 LT LV EE 24 mln Estimate Growth -0,24% -2,91% 24 mln 3,65% 5,58% 1,15% 14 mln 25 mln 26 mln 14 mln 12 mln 45 mln 45 mln 43 mln 43 mln 34 mln 6,38% 5,29% 6,22% 3,86% 2,85% 3,68% 2,97% 1,67% 2,50% 0,93% 0,11% -1,07% -1,90% -2,16% -4,82% 28 mln 47 mln 182 mln 233 mln 186 mln 236 mln 198 mln 236 mln 10,85% 4,16% 2,71% 219 mln 242 mln 7,22% 3,61% 4,87% 115 mln 115 mln 65 mln 186 mln 6,24% 4,75% 2,61% 244 mln 258 mln 1000 900 800 700 600 500 60 19 mln 121 mln 400 40 20 74 mln 72 mln 71 mln 70 mln 54 mln 75 mln 396 mln 387 mln 399 mln 415 mln 324 mln 466 mln 300 200 100 0 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 Volume Value 0 5

General overview Generic / Originator drugs market share in Baltic states 2013 1Q-3Q Originator Generic Originator market share growth YoY Generic market share growth YoY 0,01% 0,49% 0,08% 2,19% 6,10% 1,09% 4,12% 0,45% 0,98% 0,15% 0,49% 1,04% 3,66% 3,82% 5,81% 1,55% 0,20% 0,89% 0,45% 0,83% 1,40% 0,69% 2,65% 0,17% 100% -0,04% -1,80% -0,15% -0,74% -1,62% -1,87% -1,43% -1,58% -1,73% -0,42% -1,73% -1,89% -2,42% -3,02% -2,90% -1,09% -0,24% -1,63% -0,33% -0,99% -2,64% -0,95% -2,19%-0,34% 90% 80% 40% 44% 33% 35% 35% 34% 34% 41% 46% 42% 46% 42% 45% 42% 46% 63% 63% 70% 64% 65% 65% 75% 75% 74% 73% 73% 79% 79% 78% 78% 79% 60% 50% 37% 37% 36% 35% 35% 25% 25% 26% 27% 27% 21% 21% 22% 22% 21% 40% 30% 20% 10% 67% 65% 65% 66% 66% 60% 56% 59% 54% 58% 54% 58% 55% 58% 54% 0% LT LV EE LT LV EE LT LV EE LT LV EE LT LV EE LT LV EE LT LV EE LT LV EE LT LV EE LT LV EE 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Volume Value 6

VALUE mln General overview Rx and OTC dispensing types drugs market in Baltic states 2009-2014 11,48% 1.000 0,10% 5,97% 2,95% 2,57% 2,37% 6,50% 4,45% 4,17% -1,72% 900 54 mln 178 mln 800 150 mln 114 mln 700 146 mln 143 mln 147 mln 600 247 mln 500 400 300 665 mln 666 mln 685 mln 726 mln 790 mln 512 mln 200 100 0 2009 2010 2011 2012 2013 2014 Rx Rx OTC OTC Trend Rx Trend OTC 7

VALUE, mln General overview Rx and OTC dispensing types drugs market in Lithuania 2009-2014 2,19% 6,89% 4,46% 2,70% 10,68% 6,51% 6,55% 4,38% 500 450 400 350 66 mln -2,06% -2,64% 64 mln 68 mln 70 mln 22 mln 56 mln 83 mln 300 100 mln 250 200 150 330 mln 323 mln 330 mln 345 mln 268 mln 384 mln 100 50 0 2009 2010 2011 2012 2013 2014 Rx Rx OTC OTC Trend Rx Trend OTC 8

VALUE, mln General overview Rx and OTC dispensing types drugs market in Latvia 2009-2014 1,37% 1,22% 3,78% 11,84% 1,45% 2,00% 5,14% 300-0,52% -3,60% -1,06% 250 16 mln 200 54 mln 54 mln 52 mln 52 mln 42 mln 61 mln 49 mln 150 100 179 mln 181 mln 184 mln 191 mln 197 mln 144 mln 50 0 2009 2010 2011 2012 2013 2014 Rx Rx OTC OTC Trend Rx Trend OTC 9

VALUE, mln General overview 3,22% 6,43% 4,89% Rx and OTC dispensing types drugs market in Estonia 2009-2014 11,25% 8,27% 12,81% 8,85% 5,88% 3,72% 250-1,89% 17 mln 35 mln 200 29 mln 16 mln 26 mln 25 mln 26 mln 150 98 mln 100 156 mln 161 mln 172 mln 191 mln 210 mln 50 100 mln 0 2009 2010 2011 2012 2013 2014 Rx Rx OTC OTC Trend Rx Trend OTC 10

Total sales Market share by VALUE Market share by VOLUME 100% General overview Hospitals and pharmacies segments market share 80% 60% 40% 92% 91% 90% 90% 91% 96% 96% 96% 95% 95% 91% 92% 93% 95% 95% 20% 0% Hospital Pharmacies 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 400 VALUE mln 300 200 100 0 8% 9% 10% 10% 9% 4% 4% 4% 5% 5% 9% 8% 7% 5% 5% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Estonia Latvia Lithuania 6% 7% 6% 6% 5% 8% 9% 11% 9% 7% 20% 21% 26% 28% 28% 80% 79% 74% 72% 72% 182 186 198 219 118 115 94% 93% 94% 94% 95% 92% 91% 89% 91% 93% 233 236 236 242 62 186 396 387 399 415 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Estonia Latvia Lithuania 111 324 11

Market share by VALUE mln Market share by VOLUME General overview Hospital segment Generic/Originator medicine market share 100% 80% 60% 61% 59% 53% 56% 59% 76% 73% 76% 83% 87% 89% 88% 86% 82% 81% 40% 20% 0% Originator Generic 0% 39% 41% 47% 44% 41% 24% 27% 24% 17% 13% 11% 12% 14% 18% 19% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Estonia Latvia Lithuania 20% 40% 76% 74% 77% 80% 79% 66% 66% 63% 56% 53% 69% 70% 72% 66% 61% 60% Hospital sales VALUE 80% 100% 70 60 50 40 30 20 10 0 24% 26% 23% 20% 21% 36 40 51 62 33 33 34% 34% 37% 44% 47% 15 16 15 14 9 6 31% 30% 28% 34% 39% 32 34 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Estonia Latvia Lithuania 45 38 17 23 12

Pharmacy sales VALUE mln Market share by VALUE Market share by VOLUME General overview Pharmacy segment Generic/Originator medicine market share 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Originator Generic 0% 63% 64% 65% 65% 66% 79% 79% 78% 78% 78% 73% 74% 73% 73% 73% 37% 36% 35% 35% 34% 21% 21% 22% 22% 22% 27% 26% 27% 27% 27% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Estonia Latvia Lithuania 20% 40% 64% 62% 61% 61% 61% 55% 53% 54% 55% 54% 59% 58% 56% 57% 58% 60% 80% 36% 38% 39% 39% 39% 45% 47% 46% 45% 46% 41% 42% 44% 43% 42% 100% 400 95 300 200 100 0 145 146 147 158 85 83 219 219 221 228 57 177 364 353 353 377 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 301 13

PHARMACY PRODUCERS HOSPITAL PRODUCERS TOP 10 corporations by sales value Lithuanian pharmacy and hospital market 2012 1Q 2013 3Q Sales, k 2013 1Q- Growth YoY Market share (value) Market share (value) Rank 2013 (2012) Corporation Sales, k 2012 3Q 2013 1Q-3Q CAGR 2010-2012 2012 2013 1 (4) Fresenius 2.542 1.966 5,71% 6,23% 7,37% 8,64% 2 (1) Valeant 3.852 1.846-43,58% 65,37% 12,96% 8,11% 3 (6) Takeda 1.676 1.371 10,78% 21,81% 4,90% 6,02% 4 (10) Johnson & Johnson 1.340 1.208 1063,53% 12,59% 0,41% 5,31% 5 (3) Abbott 2.871 1.138 1,06% 11,26% 4,46% 5,00% 6 (8) GlaxoSmithKline 1.398 1.093 5,72% -2,31% 4,10% 4,80% 7 (12) Octapharma 1.224 1.086 15,69% 187,00% 3,72% 4,77% 8 (11) Sandoz 1.256 1.046 9,75% -12,32% 3,77% 4,59% 9 (5) Bayer 2.043 970-40,28% 5,62% 6,43% 4,26% 10 (7) Genzyme 1.500 959-18,28% -0,74% 4,65% 4,21% TOP 1-10 19.702 12.683-4,80% 17,69% 52,78% 55,70% TOP 11-20 10.655 5.508-15,67% 5,89% 25,87% 24,19% Other 7.225 4.579-15,03% -11,60% 21,35% 20,11% Total 37.581 22.770-9,79% 4,98% 100,00% 100,00% 1 (1) Berlin Chemie 28.305 22.040 5,93% -2,20% 7,52% 7,32% 2 (2) Servier 24.488 18.854 3,16% 7,44% 6,60% 6,27% 3 (6) Pfizer 18.439 16.491 28,81% -1,17% 4,63% 5,48% 4 (5) GlaxoSmithKline 19.384 16.092 13,06% -6,37% 5,14% 5,35% 5 (3) Sanofi-Aventis 20.714 15.009-3,13% -2,97% 5,60% 4,99% 6 (4) KRKA 20.583 14.174-6,60% 11,73% 5,48% 4,71% 7 (10) Novartis 12.395 13.628 72,95% 23,83% 2,85% 4,53% 8 (9) Teva 14.475 11.893 12,29% -1,88% 3,83% 3,95% 9 (8) Sandoz 14.606 11.819 10,39% 6,30% 3,87% 3,93% 10 (7) AstraZeneca 14.656 11.243 4,30% 0,57% 3,90% 3,74% TOP 1-10 188.044 151.242 10,60% -0,08% 49,42% 50,26% TOP 11-20 84.667 69.459 10,92% 0,55% 22,63% 23,08% Other 104.782 80.228 3,73% 4,33% 27,95% 26,66% Total 377.493 300.928 8,76% 3,42% 100,00% 100,00% 14

PHARMACY PRODUCERS HOSPITAL PRODUCERS TOP 10 corporations by sales value Latvian pharmacy and hospital market 2012 1Q 2013 3Q Sales, k 2013 1Q- Growth YoY Market share (value) Market share (value) Rank 2013 (2012) Corporation Sales, k 2012 3Q 2013 1Q-3Q CAGR 2010-2012 2012 2013 1 (1) Takeda 1.856 1.437 8,99% -16,22% 12,13% 15,82% 2 (7) Fresenius Kabi 674 583 28,04% 64,94% 4,18% 6,41% 3 (2) Pfizer 1.132 578-36,91% 0,10% 8,43% 6,36% 4 (4) Sanofi-Aventis 839 571-14,05% -1,32% 6,11% 6,29% 5 (3) Teva 1.001 529-29,52% 26,26% 6,90% 5,83% 6 (6) Sopharma 724 467-11,86% 11,66% 4,87% 5,14% 7 (9) Abbott 547 442 6,94% -21,94% 3,80% 4,86% 8 (8) Medochemie 548 384-3,26% -0,74% 3,65% 4,23% 9 (20) mn pharmaceuticals 227 275 63,03% 142,78% 1,55% 3,03% 10 (16) Boehringer Ingelheim 307 265 33,03% -9,79% 1,83% 2,91% TOP 1-10 7.855 5.530-4,85% 4,34% 53,46% 60,90% TOP 11-20 2.925 2.018-8,22% 8,89% 20,22% 22,22% Other 3.472 1.534-46,39% -14,77% 26,31% 16,89% Total 14.252 9.081-16,46% -6,57% 100,00% 100,00% 1 (2) Servier 11.803 9.012-0,16% 8,42% 5,34% 5,08% 2 (3) Sanofi-Aventis 11.484 8.865 3,68% -2,92% 5,06% 5,00% 3 (6) Novartis 9.814 8.115 11,66% 12,07% 4,30% 4,57% 4 (1) Pfizer 11.956 8.078-12,09% -0,68% 5,43% 4,55% 5 (5) Teva 9.977 7.505 2,93% 6,22% 4,31% 4,23% 6 (8) Merck Sharp & Dohme 8.565 7.475 20,79% 6,33% 3,66% 4,21% 7 (4) Hoffmannn-La Roche 11.293 7.340-16,91% 34,33% 5,23% 4,14% 8 (7) GlaxoSmithKline 9.745 7.237-0,83% -6,05% 4,32% 4,08% 9 (9) Berlin Chemie 8.253 6.583 7,90% -8,84% 3,61% 3,71% 10 (10) KRKA 7.564 6.160 11,11% 7,02% 3,28% 3,47% TOP 1-10 100.454 76.372 1,43% 1,62% 44,53% 43,05% TOP 11-20 59.921 47.502 7,78% 3,26% 26,07% 26,78% Other 67.636 53.514 7,66% -0,42% 29,40% 30,17% Total 228.010 177.389 4,92% 1,97% 100,00% 100,00% 15

PHARMACY PRODUCERS HOSPITAL PRODUCERS TOP 10 corporations by sales value Estonian pharmacy and hospital market 2012 1Q 2013 2Q Sales, k 2013 1Q- Growth YoY Market share (value) Market share (value) Rank 2013 (2012) Corporation Sales, k 2012 3Q 2013 1Q-3Q CAGR 2010-2012 2012 2013 1 (1) Hoffmann-La Roche 11.577 6.128 3,41% 20,34% 18,95% 18,65% 2 (2) Abbott 5.344 2.922 5,16% 55,21% 8,89% 8,89% 3 (4) Johnson & Johnson UAB 4.002 2.528 19,96% 63,23% 6,74% 7,69% 4 (3) ViiV Healthcare UK Limited 4.549 1.628-28,75% 2898,21% 7,31% 4,95% 5 (6) Pfizer 3.016 1.592 4,12% 1,47% 4,89% 4,84% 6 (5) Octapharma (IP) Limited 3.096 1.543 23,94% 38,27% 3,98% 4,70% 7 (7) GE Healthcare AS 2.478 1.365 8,46% 23,04% 4,02% 4,15% 8 (8) Merck Sharp & Dohme 2.154 1.032 0,85% 23,61% 3,27% 3,14% 9 (12) Baxter AG 1.374 970 47,80% -2,49% 2,10% 2,95% 10 (14) Genzyme Corp. 1.354 945 34,87% 28,87% 2,24% 2,87% TOP 1-10 38.945 20.652 5,86% 27,19% 62,39% 62,85% TOP 11-20 11.697 5.963-5,55% 5,17% 20,19% 18,15% Other 10.893 6.246 14,68% 13,79% 17,42% 19,01% Total 61.535 32.861 5,09% 24,22% 100,00% 100,00% 1 (1) AstraZeneca AB 9.720 5.204 7,83% -8,24% 6,13% 6,30% 2 (2) GlaxoSmithKline 9.449 5.171 11,06% 0,55% 5,91% 6,27% 3 (3) Sandoz d.d. 9.053 4.529-0,99% 4,49% 5,81% 5,49% 4 (4) Teva 9.024 4.462 0,17% 11,45% 5,66% 5,41% 5 (7) Takeda 7.938 4.273 9,44% 5,53% 4,96% 5,18% 6 (5) Merck Sharp & Dohme 8.370 4.188-1,45% -1,13% 5,39% 5,07% 7 (6) Novartis Pharma 8.144 4.142-0,31% 8,34% 5,27% 5,02% 8 (8) Sanofi Aventis 7.828 3.997 3,49% -2,74% 4,90% 4,84% 9 (10) Berlin-Chemie AG (Menarini Group) 6.381 3.434 11,07% 2,79% 3,92% 4,16% 10 (11) Bayer 6.152 3.429 15,07% 10,78% 3,78% 4,15% TOP 1-10 82.059 42.828 5,09% 1,11% 51,74% 51,89% TOP 11-20 41.029 20.959 1,84% 4,24% 26,13% 25,39% Other 34.783 18.746 7,50% 5,26% 22,14% 22,71% Total 157.872 82.533 4,77% 3,82% 100,00% 100,00% 16

PHARMACY ATC CATEGORIES HOSPITAL ATC CATEGORIES TOP 5 ATC3 categories Lithuanian pharmacy and hospital market 2012 1Q 2013 3Q Sales, k 2013 1Q- Growth YoY 2013 Market share by value Product Growth 2013 YoY 2013 RANK 2013 (2012) ATC 3Q 1Q-3Q 2013 1Q-3Q Products TOP 3 Product Sales, k 2013 1Q-3Q 1Q-3Q 1 (1) V08A 1916-16,24% 8,42% Omnipaque 772-12,96% Ultravist 732-37,85% Visipaque 398 112,33% 2 (2) J05A 1517-21,02% 6,66% Reyataz 668-25,32% Baraclude 91-41,44% Kaletra caps. 202-45,05% 3 (3) B01A 1207-11,81% 5,30% Clexane 104-62,41% Zibor 158 33,40% Fraxiparine 551 16,99% 4 (7) J01D 1183 5,80% 5,20% Axetine 145-22,49% Reflin 127-26,41% Zepilen 196 18,34% 5 (5) B05X 1176-4,88% 5,16% Natrio chloridas Fresenius 842-0,52% Sodium Chloride Braun 90-42,44% Magnio sulfatas Sanitas 114 7,55% 1 (2) M01A 12867 12,93% 4,28% Arcoxia 948 71,45% Nimesil 1580 13,46% Ibumetin Nycomed 1163 17,97% 2 (1) L03A 11673-2,36% 3,88% Pegasys 2056 15,39% Copaxone 1703-11,48% Rebif 2505-4,62% 3 (3) R03A 11250 2,06% 3,74% Symbicort 4644 6,95% Seretide 4564-2,62% Berodual 595-11,89% 4 (5) A10A 10412 4,89% 3,46% Lantus SoloStar 1820 14,46% NovoMix 2725-0,69% Humalog Mix 2104 5,01% 5 (4) C09B 10307 1,43% 3,43% Presteram 2684 9,81% Noliterax 1727 11,60% Noliprel 1726-11,28% 17

PHARMACY ATC CATEGORIES HOSPITAL ATC CATEGORIES TOP 5 ATC3 categories Latvian pharmacy and hospital market 2012 1Q 2013 3Q Sales, k 2013 1Q- Growth YoY 2013 Market share by value Product Growth 2013 YoY 2013 RANK 2013 (2012) ATC 3Q 1Q-3Q 2013 1Q-3Q Products TOP 3 Product Sales, k 2013 1Q-3Q 1Q-3Q 1 (3) V08A 1235 15,44% 12,59% Omnipaque 412-10,03% Visipaque 768 28,39% Iopamigita 42 655,36% 2 (2) B01A 1033-14,58% 10,53% Clexane 232-26,28% Fraxiparine 131-15,84% Fragmin 169-29,74% 3 (1) G03A 727-39,99% 7,41% Evra 196-39,65% Yarina 177-40,78% Yasminelle 354-39,78% 4 (4) J01D 608-6,09% 6,19% Axetine 170-0,58% Ceftriaxone-BCP 117 140,56% Cefazolin-BCPP 79-29,25% 5 (7) J01C 466 3,87% 4,75% Pamecil 57 0,03% Tazocin 97 16,37% Ampisid 275 63,03% 1 (1) L03A 7709 5,18% 4,35% Neulasta 2032 1,23% Rebif 44 1475 17,33% Avonex 1219 0,24% 2 (2) M01A 7125 10,07% 4,02% Ibumetin 1749 11,67% Nimesil 364 2,00% Dicloberl 333 3,94% 3 (4) C09B 5987 0,29% 3,38% Presteram 1531-7,96% Noliprel Forte 692 2,33% Noliterax 768 17,56% 4 (6) A10B 5835 15,22% 3,29% Janumet 1118 13,57% Metforal 495-11,97% Competact 599-27,20% 5 (5) A10A 5763-2,82% 3,25% Novorapid 1111 0,90% Novomix 763-23,43% Lantus 1137 24,02% 18

PHARMACY ATC CATEGORIES HOSPITAL ATC CATEGORIES TOP 5 ATC3 categories Estonian pharmacy and hospital market 2012 1Q 2013 2Q Sales, k 2013 1Q- Growth YoY 2013 Market share by value Product Growth 2013 YoY 2013 RANK 2013 (2012) ATC 2Q 1Q-2Q 2013 1Q-2Q Products TOP 3 Product Sales, k 2013 1Q-2Q 1Q-2Q 1 (1) L04A 1455 14,18% 13,49% Enbrel 952 5,12% Orencia 42 161,54% Simponi 425 37,77% 2 (2) V08A 1252 9,98% 11,61% Omnipaque 204 56,52% Ultravist 142-8,96% Visipaque 907 6,51% 3 (5) J05A 689 48,33% 6,39% Norvir 134 17,29% Prezista 503 53,65% Ziagen 10-3,20% 4 (6) L01X 570 40,77% 5,28% Avastin 319 4,19% Iressa 92 219,27% Topotecan Teva 47 64,28% 5 (7) B01A 389-2,75% 3,61% Arixtra 16-34,51% Clexane 293-3,45% Zibor 34-4,49% 1 (1) A10A 4314-1,41% 5,33% Levemir Flexpen 1127-1,86% Novorapid Flexpen 896 1,69% Lantus Solostar 1301 0,89% 2 (2) M01A 3799 17,59% 4,69% Ibumetin 925 50,77% Arcoxia 445 15,55% Glucadol 271-12,27% 3 (3) R03A 3261 11,40% 4,03% Seretide Diskus 1106 4,50% Symbicort Turbuhaler 1258 19,38% Seretide Inhaler 188 13,88% 4 (4) L03A 2897 2,46% 3,58% Pegasys 696-6,67% Rebif 44 Mcg 366 0,00% Copaxone 810 10,71% 5 (6) L01X 2686 13,89% 3,32% Nexavar 433 58,95% Glivec 877 9,66% Sutent 516-27,04% 19

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