PEX PharmaSequence monthly report - January 2018 Total open market (sell-out report)

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PEX PharmaSequence monthly report - January open market (sell-out report) Change in comparison to Cumulative YTD Forecast January January January 2016 turnover (PLN million) open market 1 2 968 4,5% 0,0% -1,8% 2 968-1,8% 33 817 2,5% 6,6% Rx reimbursed 2 1 018 2,2% 0,0% 3,6% 1 018 3,6% 11 778 0,9% 2,4% Rx nonreimbursed 3 613 6,4% 0,0% -2,7% 613-2,7% 7 586 4,5% 7,8% Non Rx products 4 1 312 4,8% 0,0% -5,4% 1 312-5,4% 14 166 2,4% 9,2% Reimbursement Reimbursement value (PLN million) 729 3,8% 0,0% 5,5% 729 5,5% 8 694 3,3% 7,9% Reimbursement share In total turnover 24,6% -0,7% 0,0% 7,4% 24,6% 7,4% 25,7% 0,8% 1,3% Reimbursement share In reimbursed sales 71,5% 2,5% 0,0% 3,4% 71,5% 3,4% 72,4% 1,8% 5,1% Average price per pack (PLN) 1 18,75-1,4% 0,0% 8,9% 18,75 8,9% 18,5 0,6% 5,0% For reimbursed Rx products 2 27,6-0,5% 0,0% 2,9% 27,6 2,9% 27,9 1,7% 2,6% For nonreimbursed Rx products 3 24,6-1,8% 0,0% 6,2% 24,6 6,2% 24,9 1,0% 7,2% For Non Rx products 4 13,7-1,6% 0,0% 8,5% 13,7 8,5% 13,0 0,1% 6,0% Average mark-up 1 25,35% 2,7% 0,0% -2,6% 25,3% -2,6% 25,2% -0,1% -1,0% For reimbursed Rx products 2 18,2% -1,4% 0,0% -4,2% 18,2% -4,2% 17,7% -4,6% -5,8% For nonreimbursed Rx products 3 23,9% -2,1% 0,0% -4,6% 23,9% -4,6% 24,7% -0,6% -2,5% For Non Rx products 4 29,6% 3,7% 0,0% -0,2% 29,6% -0,2% 29,1% -1,2% -2,5% Average pharmacy Number of patients in pharmacies 3 810 6,7% 0,0% -8,2% 3 810-8,2% 42 289-1,8% -0,7% turnover (PLN thousand) 1 197 4,5% 0,0% -3,0% 197-3,0% 2 231 1,4% 4,3% Zmiana vs January 2 968-1,8% 1 018 3,6% 613-2,7% 1 312-5,4% February March April May June July August September October November - pharmacy turnover cumulative in PLN million - Pharmacy market total 1 Rx reimbursed prescriptions 2 Rx nonreimbursed prescriptions 3 Non Rx products 4 Retail sales in PLN.

2 PEX PharmaSequence monthly report - January Trends - monthly pharmacy sales in PLN million - 1 4 - monthly sales in an average pharmacy in PLN - Retail sales in PLN

3 PEX PharmaSequence monthly report - January Average pharmacy turnover (thousand PLN) YTD' November Change Change YTD'2016 Change 2016 Value % Value % Value % open market 1 197 197 188 9 4,5% 203-6 -3,0% 203-6 -3,0% Rx reimbursed 2 67 67 66 1 2,2% 66 2 2,4% 66 2 2,4% Rx nonreimbursed 3 41 41 38 2 6,4% 42-2 -3,9% 42-2 -3,9% Non Rx products 4 87 87 83 4 4,8% 93-6 -6,5% 93-6 -6,5% Average price per pack (PLN) 1 18,75 18,7 19,0-0,3-1,4% 17,2 2 8,9% 17,2 1,5 8,9% For reimbursed Rx products 2 27,6 27,6 27,7-0,1-0,5% 26,8 1 2,9% 26,8 0,8 2,9% For nonreimbursed products 3 24,6 24,6 25,1-0,5-1,8% 23,2 1 6,2% 23,2 1,4 6,2% For Non Rx products 4 13,7 13,7 13,9-0,2-1,6% 12,6 1 8,5% 12,6 1,1 8,5% Average mark-up* 1 25,35% 25,35% 24,7% 0,7% 2,7% 26,0% -0,7% -2,6% 26,0% -0,7% -2,6% For reimbursed Rx products 2 18,2% 18,2% 18,5% -0,3% -1,4% 19,0% -0,8% -4,2% 19,0% -0,8% -4,2% For nonreimbursed Rx products 3 23,9% 23,9% 24,4% -0,5% -2,1% 25,0% -1,2% -4,6% 25,0% -1,2% -4,6% For Non Rx products 4 29,6% 29,6% 28,6% 1,1% 3,7% 29,7% -0,1% -0,2% 29,7% -0,1% -0,2% Number of patients 1 3 810 3 810 3 570 240 6,7% 4 150-340 -8,2% 4 150-340 -8,2% For reimbursed Rx products 2 740 740 690 50 7,2% 790-50 -6,3% 790-50 -6,3% For nonreimbursed Rx products 3 780 780 730 50 6,8% 880-100 -11,4% 880-100 -11,4% For Non Rx products 4 3 210 3 210 2 990 220 7,4% 3 520-310 -8,8% 3 520-310 -8,8% Number of pharmacies - summary 15 103 15 103 15 103 0 0,0% 14 923 180 1,2% 14 923 180 1,2% *Values in Change value for average mark-up in percentage points - Pharmacies on the open market - Retail sales in PLN

4 PEX PharmaSequence monthly report - January Price - Structure of the average retail price - All amounts are retail open pharmacy sales in PLN Most important terms: 1 open pharmacy market sales 2 sales of Rx products covered by NHF reimbursement 3 sales of Rx products not covered by NHF reimbursement 4 sales of products available without prescription, including OTC medicines, food supplements, herbs, patches, medical devices, etc.

5 PEX PharmaSequence monthly report - January PEX PharmaSequence commentary The pharmacy market in January saw sales reach close to 2 968m PLN. Value of sales compared to January fell by more than 54m PLN (-1,8%). Compared to of sales grew by more than 128m PLN (+4,5%). Compared to the same period of, the non-prescription segment fell by approximately 75m PLN (-5,4%). Sales based on non-reimbursed prescriptions fell by almost 17m (-2,7%) and on reimbursed prescription grew by 35,4m PLN (+3,6%). Compared to the previous month, value of tracked segments was growing. Value of products sold without a prescription grew by close to 60m PLN (+4,8%), value of reimbursed prescriptions was higher by 22m PLN (+2,2%) and of non-reimbursed drugs grew by approximately 37m PLN (+6,4%). Average pharmacy margin for all drugs in January was 25,4% and was smaller by 0,7pp than the margin in the same period of. Compared to of the average pharmacy margin grew by 2,7% (+0,7pp.). The average retail drug price in January was 18,75 PLN and was 1,4% smaller than in the previous month, and 8,9% higher than the average price in January of. The average retail price of reimbursed prescriptions was 27,6 PLN (+2,9% vs January ), 24,64 PLN for non-reimbursed prescriptions (+6,2% vs January ) and 13,7 PLN for products sold without a prescription (+ 8,5% vs January ). Drug reimbursement by the National Health Fund in January was in the amount of close to 729m PLN, 5,5% more than in the same period of. The level of patient copayment for reimbursed drugs in January was 28,4%, smaller by 1,3 pp. compared to January. Patient copayment for reimbursed drugs fell by 1,1 pp from. Forecast: By the end of sales of the entire pharmaceutical market will amount to close to 34bn PLN, 2,5% more than in. The estimated value of reimbursement will be over to 8,7bn PLN (+3,3% compared to ). - Monthly turnover value forecast (PLN million, retail gross prices) -

6 PEX PharmaSequence monthly report - January About us PEX PharmaSequence is a Polish consulting and research company with its own wide-ranging resources of market data. We specialize in services for entities operating in the broadly defined healthcare market. As a result of numerous projects, carried out over almost 20 years of the company s operations on the Polish market, for innovative, generic, and OTC producers, PEX PharmaSequence has gained unique expertise that allows us to provide our Clients with valuable support. Knowledge Data Consulting Research Expertise It is not without significance that our team, comprising 60+ people, has the benefit of experience gained in service companies specializing in the pharma sector, as well as industry experience acquired in local and global pharmaceutical companies. Our expertise and competencies as well as our knowledge of the Polish pharma market enable us to develop proposals and efficiently carry out projects, which offer added value to our Clients business decisions. We would like to hear from you! www.pexps.pl more info Ask us a question: rozwiazania@pexps.pl 22 886 47 15 jakub.dalach@pexps.pl Published on the 15th of February, prepared by Błażej Górniak, Marketing Specialist.

7 This document has been prepared by PEX PharmaSequence Sp. z o.o. PEX PharmaSequence Sp. z o. o. is not responsible for any potential decisions taken on the basis of this study or their consequences. This document is copyright protected by PEX PharmaSequence Sp. z o.o. It is intended for internal client (buyer) use only. The client has no right to transfer this paper or make it available to third parties (including publication). The client also has no right to disclose this document or any of the data or information which results from it. The aforementioned concerns both the entire document and any part of it. Citing or quoting (fair use) of this document, any part of it or any data resulting from it, is permitted only with written permission from PEX PharmaSequence Sp. z o.o., which outlines the goal and extent of the quotations. PEX PharmaSequence Sp. z o.o. tel.: (+48) 22 886 47 15 fax (+48) 22 638 21 29 biuro@pexps.pl