Cmm?d?n?ai CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 3 of 97. PageID 392986 -, "1m Presenters enawmm General Manager .1 32 Years ofitry experience -Joined Noramco in 2006 0 Experience includes CFO, CIO, VP Marketing and Business Unit Leader for several Pharma, Supply Chain and Med Device Companies WW Controller - 26 years of industry experience OJoined Noramco in 2006 0 Experience includes Centocor biologics, Nabisco, Avon, and General Chemical Group Product Director . 24 years of industry experience 0Joined Noramco in 1997 0 Experience includes development, regulatory, operations, and commercial with and GlaxoSmithKline Confidentiai 2 CONFIDENTIAL 1ft a f' . Case: Doc 2389-1 Filed: 08/14/19 4 of 97. PagelD 392987 at?, . . '1 E: . mfg: Important Notice airmail/item Management believes the information provided in this presentation on the narcotic active pharmaceutical ingredients business and related manufacturing operations (the ?Business?) conducted by Noramco, Inc. (?Noramco?) and Tasmanian Alkaloids Pty. Ltd. is accurate and reliable as of the date of this presentation unless another date is indicated. However, neither Noramco nor any of its affiliates in the Johnson Johnson Family of Companies make any representation or warranty, express or implied, as to the accuracy or completeness of such information. Only those agreements, representations and warranties contained in a definitive written purchase agreement between Noramco and the successful bidder shall have any legal effect. Prospective purchasers are expected to conduct their own due diligence investigation and analysis, and not rely on the information and description of the Business provided herein. In addition, this presentation contains fonNard-Iooking statements and information. Neither Noramco nor its affiliates make anv representation or warrantv, express or implied. as to the accuracy or completeness of such fonNard-lookinq statements and information in this presentation. The audience should not rely upon any forward-looking statement or information in this presentation because Noramco and its affiliates give no assurance such statements or information will be realized. Each potential purchaser is expected by Noramco to do its own analvsis as to the future prospects of the Business. {Te?fident?zal g; CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 5 of 97. PageID 392988 Opportunity and Strategic Rationale Matthew Martin I Marketand commemalovemew BIHwab 12 I Manufacturing and Supply Chain Bill Grubb 26 I Pipeline Bill Grubb 39 I Agricultural and Chemical Matthew and Bill 45 I Key Financials Anthony Ambrosini 58 I Human Resources Matthew Martin 62 I Deal Structure and Timelines Barry Fitzsimons 66 Contir?entiui (it. CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 60f 97. Page D#: 392989 .1199*: A 3 Strategic Rationale For Seller Johnson Johnson is exploring the sale ofthe Global Narcotics business for the following reasons: 1 strategy no longer includes narcotic analgesics Pharma supply chain is focused on manufacturing internal products 1 Allows 1&1 to focus on producing novel pharmaceuticals By focusing on this business from the field to the customer formulation we believe a purchaser can enhance the Noramco value proposition. Copfidemiial if?; CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 7 of 97. PageID 392990 ?aw Opportunity For Purchaser Acquire the #1 supplier of Narcotic APls in the United States, the world?s largest market Gain a global presence with marketing authorizations filed in 30+ countries Inherit a strong pipeline of new products and filed customer product opportunities Become a key supplier to the world?s largest multi-source generics Acquire fully integrated facilities and personnel and external supply network Wilmington, Delaware W??tbunx, Tasmania". Athens, GeorglaBLIIlding 6 Active Pharmaceutical Ingredients Extraction, Ag Small Scale Manufacture Cpnfiuentiai CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 8 of 97. PageID 392991 Noramco Global Product Portfolio We. .333 343.1%" its" Oxycodone Oxycontm?, Percocet?, Pam $94 Roxicodone? Hydrocodone Vicodin?, Lortab? Pain 52 Buprenorphine Bu~trans?, Norspan? Pain or addiction 20 Suboxone?, Subutex? Morphine MS Contin?, Embeda? Pain 20 Codeine Laudanon? Pain 18 Hydromorphone Dilaudid?, Exalgo? Pain 9 Naloxone Narcan?, Evzic:? Overdose or abuse 2 Other/ intermediates ADHD and Pain 23 Narcotic Raw Materials 20 Global 2014 Net Trade $258 Sales value *Net Trade Safes reflect internal data and are unaudited Com?den?dl CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 9 of 97. PageID 392992 1? :r .1 . . It Locations and Functions Included in Transaction Manufacturing Sales Customer Service Quality CMO Technical Support Sales Customer Service and Regulatory Finance Program Managers Manufacturing Plant Support Manufacturing Customer Technical Support and Regulatory Program Management Manufacturing Plant Support Growing and Extraction Ag and Chemical Field Staff Plant Technical Support NRM Sales 8n Customer Service CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 10 of 97. Page D#: 392993 483 Full Time Equivalents Support the Franchise (s5: (455 direct and 28 shared with 197 FTEs 13 Shared Sales 84 Customer Elervice Tecl?lrlicel Support R810 and Regulatory Progrerri Managers Quality Sales 8; Clismrraer Service Finalise Manufacturing Plant Support n: i :.55 333 33 4 Shaw 195 FTEs 4 Shared Marm?iacturirlg Cristomer Technical Sluldoort WW and Regulatory Program Management Growing and Exrr?artiorl Ag; and Chemical 9&0 liield Staff lilarll: 8a Support Mandiacturing Plant Support a. Wily/l Sales 8: (Customer Service The 28 shared resources are leveraged with and are required to operate the business. 2 employees located in UK included within Schaffhausen headcount. The shared resources gincluded with Cost of Goods. 0 Coofider?rtidi CONFIDENTIAL In at we Case: Doc 2389-1 Filed: 08/14/19 11 of 97. Page D#: 392994 Products to Be Transferred to Purchaser Transition Supply Agreements are Anticipated Wilmington Tasmania Oxycodone HCI CPS?Codeine Hydrocodone Bitartrate CPS?Oripavine Morphine sulfate CPS?Thebaine at Codeine Phosphate CPS?Morphine Oxymorphone QM) Ci) .lwa 11-3028 for Tapentadoi Til?) ti) Technical Oxymorphone fa; Technical Thebaine tit) Amphetamine Aspartate ?x 1% Amphetamine Sulfate ?lm wig Dextroamphetamine Saccarate Dextroamphetamine Sulfate CONFIDENTIAL Athens Hydromorphone HCI Buprenorphine Base Buprenorphine HCI Methyiphenidate HCI Tapentadol HCI Hydrocodone Entermediates Technical Oripavine Fentanyl in USA Coe?den?al - "a 43$ .. equiv '{gag Buprenorphine Base Buprenorphine HCI Codeine Phosphate Naioxone HCI Naitrexone Base Naitrexone HCI Dronabinol Noroxymorphone intermediate 5 for Buprenorphine for Fentanyl Tw2955 for Tapentadol Bromide (Validation) Oxycodone HCI (Validation) Cannabidiol it? 3. CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 13 of 97. Page D#: 392996 I Opportunity and Strategic Rationale Matthew Martin 4 .9 Market and Commercial Overview Bill Grubb 12 .H M?hufacwring and Supp'y Chain .Bi? Grub-'26., I Pipeline Bill Grubb 39 I Agricultural and Chemical Matthew and Bill 45 I Key Financials Anthony Ambrosini 58 I Human Resources Matthew Martin 62 I Deal Structure and Timelines Barry Fitzsimons 66 Contir?entiai 32 CONFIDENTIAL fag The Nora mco Story -*_ngCW Our It Johnson Johnson formed Noramco 36 years ago for security of supply for Tyleno ? with Codeine in the mid-805, 1&1 acquired Tasmanian Alkaloids, to secure another piece of the value chain Noramco since developed processes for and registered a dozen APls Confidentiai CONFIDENTIAL The Noramco Story was" Name-acme Our C-ll Controlled Substances: People, Processes, Procedures Exceptional support. Over 45 chemists and dedicated to assisting customers to bring their products to market and developing new products Compliance. Exemplary FDA, DEA, and EPA compliance records Con?den?ai CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 16 of 97. PageID 392999 . is . f? .1 ?93? :i . The Noramco Story (gm . in The largest narcotic API supplier in US i Focused expansion of controlled substances for i! Rapidly growing ROW footprint for sales and manufacturing Exceptional compliance record i? Recognized for superior customer and technical service Conficien'tiei CONFIDENTIAL II Case: Doc 2389-1 Filed: 08/14/19 17 of 97. Page D#: 393000 . ?zeta5,0. . .. . Franchise Strategy em Leverage our vertical integration to deliver the best cost, highest quality, controlled substance APls Codeine from Tasman poppy Partner with best-cost technology focused manufacturers Enter new markets for existing products Target closed markets by supplying API to customers Strategic countries and regions of interest for existing portfolio Maintain a leadership position in agricultural Increase alkaloid content to generate capacity and lower costs Breeding programs to assure robust and stable crops Participate in growth through partnerships Focus. Execute. Deliver. Confidential 36 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 18 of 97. Page D#: 393001 a a; . gig A Narcotics US Global Volume Drivers it API volume growth linked to expanded use of analgesics driven by aging population and OUS expanded access ll API volume growth linked to generics of Branded drugs, new delivery systems abuse prevention claims it No revolutionary new narcotic NRM but new uses found 1 Naloxone as a combination for abuse deterrent for constipation 1 Naltrexone for weight loss, drug addiction it Buprenorphine showing global growth for drug abuse and pain Cpniident?al CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 19 of 97. Page D#: 393002 33 W33 Over 80% of Nora mco?s Sales are via Long-Term Supply Agreements Noramco has long-term agreements and/or majority controlled substance share with 7 of the top US generic companies Typical supply agreement terms ll Covers multiple controlled substance products (4 or more) Agreements are for more than 80% of customer?s volume lr Terms are for 3 to 5 years minimum with rolling renewals Note: Existing agreements are not a guarantee of future business or renewal, purchaser must assess value Confidential 115% CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 20 of 97. Page D#: 393003 ;a Key Narcotics Markets are Fully or Partially Closed To the Import of Controlled Substance Narcotics WWCW Fully or Partially Closed Markets ?fix: a must be produced in fully closed markets, including the US (the world?s largest market) (2an ?le r?l mi CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 21 of 97. Page D#: 393004 (E Ten Markets Account for 90% of Global Consumption of Narcotic APl?s Key Narcotics Consumption by Region . SWeden(34 tons) Italy (47tonsl France (28 tons) USA . (169 tons) Spam India (20.5 tons) Brazil (35 tons) Australia (18 tons) South Africa (13.2 tons) Source: IMS and INCB 2014 Narcotic APls includes some narcotic derived (Na/trexone, Naloxone, etc.) Com?dea?al CONFIDENTIAL Germany (12.8 tons). (a 'l Global Narcotics Consumption by Volume Naltrexone 0.5% Oxymorphone 0.5% Naloxone Buprenorphine 1.3% 1 00/ Hydromorphone 0.9% Morphine 11.2% Hydrocodone 13.5% Codeine 52.3% 100% 416.5 tons Closed markets (fully or partially) NarcoticAPls must be manufactured in Closed Markets. Exports are allowed but often have restrictions. Open Markets imports allowed but are highly regulated. 20 Case: Doc 2389-1 Filed: 08/14/19 22 of 97. PageID 393005 North America is 47% of Global Consumption and is The Key Controlled Substance Market - it I Global Consumption of Narcotic Controlled Substance a 1% Sweden Norway 00 Austria 1% Spain Braz 1% 1% 1% Germany 3% North America consumes: South Africa 3% l" 82% of the worlds Oxycodone ill 99% of the Hydrocodone l: 99% of the Oxymorphone ll 79% of the Hydromorphone 66% of the Buprenorphine l! 61% of the Morphine l. 14% of the Codeine Source: FY2014 Includes OXY, HBT, CPH, PMS, OMH, HMH, NLX, NTX, BUP. Excludes and drugs Comfidentiai 23. CONFIDENTIAL PPLP0051000272292 Case: Doc 2389-1 Filed: 08/14/19 23 of 97. PageID 393006 Noramco Has Steadily Gained US Market Share 1.91 #1 #1 #1 #1 70% 055% 60% 50% Jun-13 Jun?14 I Jun?15 40% Percent Share 30% 20% 10% 0% Oxycodone Hydrocodone Codeine Morphine Hydromorphone Oxymorphone Noramco 2014 US Sales Source for Share: sales data, Source for Noramco US sales: unaudited compan financials 32 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 24 of 97. Page D#: 393007 Competitive Landscape Noramco Has A Focused API Portfolio Backed By Secure Internal Supply Of Narcotic Raw Material Noramco Mallinckrodt Rhodes Tech J. Matthey Francopia Siegfried Cambrex Alcaliber Others CONFIDENTIAL API Supplier to Largest Generics Branded dosage Internally focused API for Purdue CRO and CMO and FDF Brand and Generic API CIVIO and FDF CMO and Generic API NRM supplier limited API Sun, Aspen, AM RI Cou?den?ui Major Supplier No No Limited Yes No No Yes Varies ?st. (:25 Global NRM and API Primarily US Primarily US Global Primarily OUS Global Global OUS Varies 235i Case: Doc 2389-1 Filed: Narcotics Global Trends And Future Codeine and Morphine primarily used for analgesics OUS 1? Enforcement reduced market size by per year from 2011 to end of 2014, appears to be stabilizing Stronger analgesics (Oxycodone, Hydromorphone, Oxymorphone) reformulated for Extended Release presentations Cpe?dem?al CONFIDENTIAL 610130] Market -- we5;..meriwe}? . 08/14/19 25 of 97. PageID 393008 Aging population and increasing wealth increase analgesic demand Stronger analgesics in Abuse Deterrent presentations will gain more acceptance in new markets US Multinationals will continue to expand pain franchises OUS with Generics and Branded Generics 2% Case: DOC #1 2389-1 Filed: 08/14/19 26 Of 97. PagelD 393009 Pain Finished Dose Sales Are Projected To Increase To $57 To $65 Billion By 2018 a; ?as; its? like5?71?" ail; . ?in? Developed Markets anoiagiczs Diabetes Autoimmune Pain Reapiratery Mental Health Hypertension Dematalagy Cheiesteml HIV Antivirals - gimme: .Orrtebar: 201? 4 'ngnesis, ??feber 25314? .3 Spending by Thera?y area, 2018 Sales in 2018 $71-$13? 9561-7an $47-528n $38~438n $33-3831?: 33-3881"! 322-2531?! $214483?: 0 Specialty Antibiotics Hypertensien Oncelogies Diabetes ether Ca rdicsvascular Antiuicerants Dermatoimgy Choiesterel Mental Health Traditional 3? Sales in Phamergmg Markets 2013 (L65) $192283?: $18-218n 3512-1481?? $1 i~138? $10-1an $101an $04.08?! 35545:} 52,1". l. Today Pain Is The Number One Therapy Area For Generics Both In Value And Volume In Pharmerging Markets CONFIDENTIAL Cem?den?al 23% Case: Doc 2389-1 Filed: 08/14/19 27 of 97. PageID 393010 {g . .. Opportunity and Strategic Rationale Matthew Martin 4 I Market and Commercial Overview Bill Grubb II Manufacturing and . Agricultural and Chemical Matthew and Bill 45 I Key Financials Anthony Ambrosini 58 . Human Resources Matthew Martin 62 I Deal Structure and Timelines Barry Fitzsimons 66 Contir?entiai 328 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 28 of 97. Page D#: Fully Integrated Supply Chain Provides Security Rolling 12 months 6 to 12 months Generally Field to Formulation is 2 years Confidential CONFIDENTIAL Case. 1: 17- md- 02804- DAP Doc#: 2389- 1 Filed. 08/14/19 29 of 97 Page D#: 393012 Narcotic Raw Material Is A Critical Foundation In A Complex Supply Chain 5% . WWCW Oxycodone Tasmanian Alkaloicls produces over 40% of the - . Hydrocodone . Thebaine Naltrexone world 5 supply of NarcotIc Poppy Straw - Buprenorphine Raw Matenals I Naloxone Nals -- Tasmanian Alkaloids has the highest content poppies for key alkaloids Many APIs may be made via different routes of INCB report issued March 2015 notes that Tasmania produces 77% of the World thebaine 22% CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 30 of 97. Page D#: 393013 in" win in Noramco Manufacturing Network ?1 jamsen Geel, Belgium Buprenorphine Base Buprenorphine HCI Tiamjeirinig Gib/Ms Oxycodone Hydrocodone Oxymorphone . Codeine Buprenorphine lnter. Morphine Tasman Codeine Naloxone HCI Naltrexone Base and Noroxymorphone Methyinnl?rexone (Whammy) Eiwcmione (Wiowtinm e2: Amphemwine Snizi's unlidming ?emsen ATHENS, Georgia Buprenorphine Base Buprenorphine HCI Fentany! Hydromorphone Methyiphenidate HCI Tapentado! CPS - Thebaine CPS Oripavine - - CPS Codeine (Tasmanm) Note: This is a summary, not intended to show all of?ce relationships Confiden'?ei 329 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 31 of 97. Page D#: 393014 (?122' a fie ?4 Excellent Compliance: Quality {363%an Tasmania it Most recent FDA inspection was February 2013 it No Form 483 was issued Wilmington it Most recent FDA inspection was November 2014 it No Form 483 was issued it Over 5 years since the last inspection in which a From 483 was issued Athens Total Site it Most Recent FDA inspection was February 2014 it No Form 483 was issued ii There has never been a Form 483 related to any part ofAPl or intermediate manufacturing in Athens Noramco and Tasmanian Alkaloids host customer audits by the world?s largest brand and multisource generics routinely Cm?dentiai 3i} CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 32 of 97. Page D#: 393015 . jg'is- -. 5'2 Excellent Compliance: DEA ammum Wilmington ii Most recent DEA inspection was July and August 2015 is 5 week inspection with zero observations based on the review of prior three years of transactions Athens (total site) July 2015 DEA inspection of Importer registration zero observations is Most recent manufacturing inspection was 2013 31?. CONFIDENTIAL Case: Doc 2389-1 Filed: Noramco, Wilmington, DE 750+ tons per year Finished API and Intermediates Thebaine Technical 5% Oxymorphone 1% Oxymorphone Morphine 16% Oxycodone 36% Codeine 14% Hydrocodone 27% Key Products by produced CONFIDENTIAL Confidential 32 200,000 180,000 160,000 At Capacity 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 e? Oxycodone HCI Hydrocodone Bitartrate Morphine Sulfate Technical Thebaine Oxymorphone, crude 3m Amphetamines CONFIDENTIAL Cpm?den?pi 2015 2016 2017 2018 2019 Codeine Phosphate 3% Oxymorphone HCI mTapentadoi Intermediate 311 Case: Doc 2389-1 Filed: 08/14/19 35 of 97. Page D#: 393018 3" Recent Wilmington Investments Provide Capacity And Support Growth Hydrogenation capacity Complete Doubled capacity for Oxycodone and Oxymorphone Drying capacity New dryer Complete New 1000L dryer Complete Milling capacity Completion 2016 Focused Factory In progress 2015/2016 Hydrocodone, Codeine, Morphine These investments provide capacity and room for expansion Cooiidomt?al CONFIDENTIAL 300 tons per year Technical Thebaine CPS Oripavine 3% 6% CPS Thebaine 73% by Volume Produced CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 37 of 97. Page D#: 393020 Security of Supply: Raw Material From Tasmanian Alkaloids to Noramco amalgam .. 362 CONFIDENTIAL Case. 1: 17- md- 02804- DAP Doc#: 2389- 1 Filed. 08/14/19 38 of 97 Page D#: 393021 3% Tasmanian Alkaloids Recent Investment of $27 MM Increased Capacity by 50% .1 300 tons per annum capacity at Tasmanian Alkaloids 3rd party contract extractor demonstrated and qualified Utilize contract extraction above 300 tons (no capital expenditure) .1. Annual increase in poppy content will boost capacity if.? . at I Demand Driven Narcotic Raw Material Requirements 2015 Strategic Capacity Model 400 350 300 250 200 - Tons of NRM 150 - 100 - 50~ 2016 2017 2018 2019 Thebaine CPS Oripavine CPS mTasman CPS 2020 Co??den?ai CONFIDENTIAL 3F Case. 1: 17- md- 02804- DAP Doc#: 2389- 1 Filed. 08/14/19 39 of 97 Page D#: 393022 . Noramco? 5 Established External Manufacturing -- . Netwo rk armaments: Efficient access to specialized equipment and technology Access to closed markets Q: Janssen Gee! (BE) Buprenorphine Base -: Buprenerphina fnfermedfates fer Fentanyf intermediates for Tapem?adol Janssen Athens (GA) Buprenorphme Base and H01 Hydromorphone Methyipnenidate Fanfanyf Tapenfadoi Noramco Schaffhausen Tasmanian Al Cmfidentiai 355?? CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 40 of 97. PageID 393023 {g . .. Opportunity and Strategic Rationale Matthew Martin 4 I Market and Commercial Overview Bill Grubb 12 Manufacturing and Supply Chain Bill Grubb I Key Financials Anthony Ambrosini 58 . Human Resources Matthew Martin 62 I Deal Structure and Timelines Barry Fitzsimons 66 Contidentiai 339 CONFIDENTIAL II Case: Doc 2389-1 Filed: 08/14/19 41 of 97. Page D#: 393024 1% #1 '1 1:1? 1 . 1. Noramco Growth Drivers and UpSIde @wawmm ND Participation ncreased Share ADF Abuse Deterrent Drug Formulations Comfidenmi ?30 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 42 of 97. Page D#: 93025 Growth in Noramco Share is Possible Growth in share supported by contracts with key finished dose providers* Completed qualifications (oxymorphone) Customer qualifications that are in-progress (hydromorphone) Capitalizing on key brand to generic switches (Oxycontin) Noramco has steadily gained US market share 70% 550% :?iu mm arm -, Mun-15 mm, 15% -- mm, Owcodan-e Hydrated-one Codeine Morphine Hydromarphone ?xvmorphone Existing contracts are not a guarantee of future business Cmfipentiei CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 43 of 97. Page D#: 93026 Customer NDA Product Launches Where Noramco Supplies API 6323 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 44 of 97. Page D#: 93027 ew Offering (Pipeline) from Noramco 43g CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 45 of 97. Working With Innovators Assures Noramco Participates In Launches Oxycodone Antagonist Morphine Antagonist (NTX) Hydromorphone Mechanicai Tapentadoi Mechanicai Oxymorphone Mechanical Oxycodone Antagonist (NTX) Commercial Oxycodone Mechanicai 10% Oxycodone Mechanical Mallinckrodt Commercial Hydrocodone Mechanicai Commercial Hydrocodone Antagonist (NTX) Deveiopment Oxycodone Mechanical Deeviopment NME: Biochemical In Progress Deveiopment NME: Prodrug Enzymatic In Progress Deveiopment Codeine Mechanicai Filed Hydromorphone Antagonist (NLX) Filed Oxycodone Mechanicai Filed Oxycodone Antagonist (NLX) 10% Filed Morphine Mechanical CONFIDENTIAL Con?dan?ai PageID 93028 F?mmpatiw Noramco is the sole supplier to the vast majority of commercial and ADF formulations l? Included in filings because we could meet requirements nobody else could (or would) Abuse Deterrent Drug Formulations KM- PPLP0051000272315 Case: Doc 2389-1 Filed: 08/14/19 46 of 97. PageID 393029 .. Opportunity and Strategic Rationale Matthew Martin 4 I Market and Commercial Overview Bill Grubb 12 Manufacturing and Supply Chain Bill Grubb 26 I Pipeline Bill Grubb 39 ngcm?g:and Ch?n?icall Matthew-Hand Bill . WK'ey #:2231035 AnthonyAmbrosmr . 58 . Human Resources Matthew Martin 62 I Deal Structure and Timelines Barry Fitzsimons 66 Coatir?antiai CONFIDENTIAL Case. 1: 17- md- 02804- DAP DOC #1 2389- 1 Filed. 08/14/19 47 Of 97. PagelD #1393030 rag 4.1% m; - ., Creating A Sustainable Competitive Advantage And Achieving The Lowest Cost @2me Cost Drivers of API Value Creation by: 'lC arcotIc aw aterIa ost Agricultural Volume (Economy of Scale) Complexity (#Steps) Conversion Efficiency Chemical Ultra High Purity (ppm) Cm?r?emtial 7% CONFIDENTIAL Case. 1: 17- md- 02804- DAP Doc#: 2389- 1 Filed. 08/14/19 48 of 97 Page D#: 393031 gm Creating A Sustainable Competitive Advantage - And Achieving The Lowest Cost wwamc All are important Cost Drivers of API Value Creation by: ?l aw atena Agricultural Volume (Economy of Scale) Complexity (#Steps) tonvereion Ef?ciency Chemical Ultra High Purity (ppm) Confir?ential CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 49 of 97. Page D#: 393032 g; ?9 . . ?Mfr 14" my?. '5 .2 as . QT The Value of Agricultural Research Percent Thebaine in Poppy (Average) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 it Narcotic raw material is the single biggest contributor to API costs it Tasmanian Alkaloids has increased the alkaloid content by 300% over the last 15 years it data validate that these increases are unparalleled in the industry CONFIDENTIAL Con?denbel Case: Doc 2389-1 Filed: 08/14/19 50 of 97. PageID 393033 Current Ag Objectives -- we? - . a: it: my 5;..aeii?if? . momma-?LOW ii Increased yield (alkaloids per ha) ll Reduced processing costs (reduce crop: straw ratio, capsule characteristics) ll Increased crop production efficiency to reduce the gap between average and maximum crop yields ii Risk management of raw material supply (new production regions e.g. Victoria) Copiidemtiai CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 51 of 97. Page D#: 393034 Tasmanian Alkaloids - Three Areas of Work 5My?, *3 A momma-?LOW l? Plant Breeding and Improvement On?going core activity that has delivered results ll Agronomy Translating Agricultural to the field a Leveraging Field Staff ii Biotechnology Transformational innovation area Confidential 55:0 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 52 of 97; Plant Improvement In Tasmania Description Ongoing conventional plant breeding program to improve the alkaloid content and productivity Objective Release new varieties with 5% increase per year relative to previous year Desired Outcomes Increased Thebaine and Codeine yields per ha Improved growth characteristics constant height, dwarf varieties, etc) Production of thebaine and codeine lines with differential herbicide resistance (decreased field and factory production costs) Development of seedless or sterile varieties (increased straw/crop ratio) Confidential 533. CONFIDENTIAL 699%. .: . .2. a} a wi- ?11" Case: Doc 2389-1 Filed: 08/14/19 53 of 97. Page D#: 393036 . Agronomic Research Description Increase poppy plant production efficiency and alkaloid yield production through optimisation of crop husbandry translated to the real world with field staff) Objectives Introduction of new technologies to increase crop production efficiency and decrease field and processing costs Attaioidm by lamp-Type Desired Outcomes gig 4a. - - Reduction in gap between average 3% 3 . ?x 3% .. and best yields a! 31% mi; Increase yields per ha g; j_ MM 153.. Increase disease resistance ?Improve growth characteristics Wimy?m Confidential 532 CONFIDENTIAL ?m "i Case: Doc 2389-1 Filed: 08/14/19 54 of 97. Page D#: 393037 Biotechnology In Tasmania Description Develop poppy polyploids for commercial crop production using targeted mutagenesis and gene regulation Objectives Increase efficiency of alkaloid production Desired Outcomes Increase Thebaine and Codeine alkaloid content from current level by 20% in the near term and 50%+ long-term Development of seedless or sterile commercial varieties Provide new parent material for conventional breeding Coniidwtial 5:313; CONFIDENTIAL Case. 1: 17- md- 02804- DAP Doc#: 2389- 1 Filed. 08/14/19 55 of 97 Page D#: 393038 Creating A Sustainable Competitive Advantage And Achieving The Lowest Cost All are important Cost Drivers of API Value Creation by: ?l aw atena cm: Agricultural Volume (Economy of Scale) Complexity (#Steps) Chemical Convemion Ef?ciency Ultra High Purity (ppm) Confir?ential Egg. CONFIDENTIAL as22w Alf-?U - ?122' a i? ?5 Case: Doc 2389-1 Filed: 08/14/19 56 of 97. Page D#: 393039 Wt? Chemical and Analytical Summary momma-?LOW A Tasmanian, Australia Extraction improvements and development on all poppy varieties Extraction support and process troubleshooting (including external APl?s) A Athens, Georgia and Wilmington, Delaware Customer support and specialized customer samples Plant support for Noramco manufactured APl?s and US external intermediates Development and improvements of new and existing APl?s reference standards Schaffhausen, Switzerland Development and improvement of and intermediate processes Production Support of all externally manufactured APl?s Global Functions Located Across Sites: Regulatory Affairs and Technical Services Confidential 535-} CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 57 of 97. PageID 393040 Summary of Key Chemical Contributions Developed and commercialized 10+ APls in 6 years Cost of goods improvements for core products (oxycodone, hydrocodone, codeine, morphine, Nals, and Bup) 2015 is a transition year for customers to new Oxycodone and Codeine processes 1 Full-year benefit to COGS in 2016 for >75% of Oxycodone volume and >50% of Codeine Fully filed dual-sourced Nal~family via thebaine oripavine has adapted our products to secure business Inclusion in ADF forms by low level impurity control New filed particle sizes for sophisticated ER formulations Coniideni?ei CONFIDENTIAL - ?Case: DOC #1 2389-1 Filed: 08/14/19 58 Of 97. Page D#: 393041 Schaffhausen Business and Technical Operations ymg?ngm World Wide Narcotics Franchise Schaffhausen: ii Manages virtual OUS Supply Chain with products representing 50% of NF product portfolio, approx 15 SKUs it Owns and maintains IP of the Naltrexone family APls including regulatory filings if Profits from Swiss tax benefits it Very experienced and productive center for WWNF if Developing a commercial process for the new API Cannabidiol ii Overall HC of 30 (8 within JSC) Cmfidential if?? CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 59 of 97. PageID 393042 {g . .. Opportunity and Strategic Rationale Matthew Martin 4 I Market and Commercial Overview Bill Grubb 12 Manufacturing and Supply Chain Bill Grubb 26 I Pipeline Bill Grubb 39 Agricultural and Chemical Matthew and Bill 45 Key Financials Anthony Ambrosini 58 i_ . WHuman Resom?es Matthew martin 62. I Deal Structure and Timelines Barry Fitzsimons 66 Contidentiai 553 CONFIDENTIAL PPLP0051000272329 Case: Doc 2389-1 Filed: 08/14/19 60 of 97. PageID 393043 2010 - 2015 Noramco Sales . (SMM, Unaudited) 5 $250 3200 ll! Non?Core Business 3100 (Narcotic Raw Material, Seed) $50 so 2010 2.011 2012 2013 2014 2015 LT Core Growth +26.5% +13 +35% Total Growth +27.5% +32% +08% 1? Core Business sales continues to grow due to increase in market share Total Noramco sales 5-year CAGR of (Core Business is Confidential 55% CONFIDENTIAL Case. 1: 17- md- 02804- DAP Doc#: 2389- 1 Filed. 08/14/19 61 of 97. PagelD 393044 Noramco Core API sales have increased In a declining market (Unaudited) @r Market for Noramco Core API Noramco Core API Sales CAGR 4.5% CAGR +83% Noramco Sales $300 - 2010-2015 WWNF Core Product Safes $244 $230 - $207 $200 - WW, 1 $130 - $100 - $2010 2011 2012 2013 2014 2015 LT Oxycodone Hydrocodone Buprenorphine Codeine Phosphate Morphine Sulfate Other (Oxym, Nals) W. Total Market Demand Total Market Volume includes IMS sales actuals through June 2015 in markets accounting for >92% of Noramco Sales Confidential 60 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 62 of 97. Page D#: 393045 0.1.11?- II. -. WW Narcotics: Supply Chain Impacts to 2015 Sales 0?00 ,4 75.01101?: Customer Demand WWNF 5 Year Sales (Unaudited) Exceeds Supply by 2015 Supply Chain Impacts $17mm 300 21/ ,3 258 252 250 257 222.610 250 202 200 150 Supply issues example: 100 - 25% of Oxycodone produced this 50 year has been reprocessed Impact: 2015 US Sales would be 6 to 0 10% higher without Supply Issues 2011 2012 2013 2014 2015 LT 2015 Demand mus nous (3000131210005 623?. CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 63 of 97. Page D#: 393046 2010 2015 Noramco Fmancral Metrics (SMM, Unaudited) 11} 2010 2011 2012 2013 2014 2015 LT Revenue 258 252 250 258 260 Cost of Products Soid (138) (172) (176) (180) (180) (188) Gross Profit Total Operating Expense 23 20 25 29 29 28 Expense to Sales 11% 8% 10% 12% 11% 11% Other Expense/(income) 1 1 2 (2) (1) (1) Operating Income 40 65 49 42 50 45 Operating Margin 20% 25% 19% 17% 19% 17% Depreciation 19 18 16 15 16 16 Amortization - EBITDA Sales 29% 32% 26% 23% 25% 23% Financial Metrics Cash ?ow 28 21 (2) (14) 2 20 inventory I 120 122 154 203 223 229 Capital Spend 15 21 20 25 23 19 Note: The 2013 and 2014 financial information above excludes inventory reserves of and $1 1 MM, respectively, where that inventory is expected to be sold through in 2016 or beyond. Con?dent?ai 152 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 64 of 97. PageID 393047 {g . Opportunity and Strategic Rationale Matthew Martin 4 Market and Commercial Overview Bill Grubb 12 Manufacturing and Supply Chain Bill Grubb 26 Pipeline Bill Grubb 39 Agricultural and Chemical Matthew and Bill 45 Key Financials Anthony Ambrosini 58 Human Mat-thew Marti; 62 Deal Structure ana-Ti?melines Barry Fitzsimons 66 61% CONFIDENTIAL PPLP0051000272334 Case: Doc 2389-1 Filed: 08/14/19 Noramco Organization a I I Tas Aik Ag Managing Administrative Manufacturing Quality Director Chemical Commercial HR Finance . implementation 1? . 2 4?52 mm gar x~ 'r13.37% ?e . 4 s? 2a air311363.?. . warm 25ragga2,25. 4 a k. 2:22; aria Corr?rirmiiai 6253i CONFIDENTIAL Case. 1: 17- md- 02804- DAP Doc#: 2389- 1 Filed. 08/14/19 66 of 97 PagelD#: 393049 u" 483 Full Time Equivalents Support the Franchise (455 direct and 28 shared with 24 FTEs 7 Shared 197 FTEs 13 Shared Sales Customer Eewice {Eh/ii.) "Technical Support Regulatory Program Managers 8810 (Analytical Chemical) Manufacturing Services: Sales 8: Customer Service Finance Manufacturing Plant Support 38 FTEs 4 Shared 196 FTEs 4 Shared Manufacturing MEI "Treating, Hub {Eustorner'freohrlical Supoort R829 (Analytical Chemical) Regulatory Hub Program; Managgemen rIt Manufacturing Plant Support Growing and ?xtrartiorl Weill (Analytical Chemical) Field ?ltafl Want 8L "Technical Support Sales ner Eerv?m The 28 shared resources are leveraged with and are required to operate the business. 2 employees located In UK included within Schaffhausen headcount. The shared resources are included with Cost of Goods. I Coofider?atial 88 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 67 of 97. Page D#: 393050 uni? in?? .: A an ?i 3 Human Resources Considerations Ir Transfer of 455 FTE to buyer ll Maintain comparable level of compensation for at least two years Ir has implemented retention bonuses to key employees to ensure business continuity Cbniidential CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 68 of 97. PageID 393051 {g . .. Opportunity and Strategic Rationale Matthew Martin 4 I Market and Commercial Overview Bill Grubb 12 Manufacturing and Supply Chain Bill Grubb 26 I Pipeline Bill Grubb 39 . Agricultural and Chemical Matthew and Bill 45 I Key Financials Anthony Ambrosini 58 . Human Resources Matthew Martin 62 sea. salaried timelines? as Contir?entiai 67 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 69 of 97. Page D#: 393052 1% Iii690%- my? A St: a Deal Process Mawm ii After management presentation, process letter for preliminary bid sent to you describing Cash consideration for business Source of financing and need for audited financials Indication of level of review and approval within organization prior to submission of preliminary bid 'lr Data room access based on preliminary bid ill Submission of final binding bids ill Contract negotiations Confidential ?58 CONFIDENTIAL CONFIDENTIAL z? ?i?as? x?r .293: Egg? E): @a 4 Case: Doc 2389-1 Filed: 08/14/19 71 of 97. Page D#: 393054 1s; . .?xw Noramco 2010 2015 Capital Spend $2010 2011 2012 2013 2014 2015 Base Spend Wilmington Capacity Tasmania Capacity Cmfiti?mtiai "20 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 72 of 97. PageID 393055 Increased Capacity Wilmington: $14 MM Expansion Underway a - (gig ll Fully approved and in progress Warehouse vault and office occupancy Nov 2015 Milling on-line Q1 2016 Doubles the milling capacity of all products currently a bottleneck) Cm?dential 71. CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 73 of 97. PageID 393056 gm gxmw? ?g w: Global Regulatory Portfolio we} . as: '5 5 Product ?3 0 a 3 renorphine Base . renorphine HCI ine Phosphate (classic) ine Phosphate (Tasman) Base Bitadrate HCI ron Sucrose one Br ate HCI ate HCI ne Sulfate HCI il/Aesica Base il/Aesica *In-process HCI TNVT held by Noramco (OXY3) held by 3:6 held by TasAlk Base held by Cilag Cm?dem'?el 72 CONFIDENTIAL Leveraging Narcotic Raw Materials from Tasmania Controlled Substance Agonist or Antagonist Sustainable Competitive Advantage Confidential 73; CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 75 of 97. Page D#: 393058 Hm Current Facilities and Offices USA Wilmington DE Manufacturing Site Leased Office Space Wilmington Athens GA Research and Office Space Switzerland Office and Laboratory Space Tasmania Westbury Manufacturing Site UK 2 Home Based Offices CONFIDENTIAL Co??den?al Personnel Supporting Business 30 200 2 ~4'83 Total may .momma-?LOW Many lnvestcmen?MMwweMmeodin8MWe of 97. PageID Launches Xartemis/ Mallinckrodt (LA ADF) Short Acting Opioids KemPharm (Hydrocodone ADF) 393059 506/ KemPharm (OXY HMH ADF) Launche? 2015/16 9 2017 to 2019 a 2020+ Long Acting Opioids XartemisXR/ Mallinck. ADF) ADF ?1 Abuse Deterrent Formuia?cion Source: BioMed Tracker, IPD Anaiytics, company websites investor relations caiis Mallinckrodt (Hydrocod+APAP ADF) Coa??an?ai NKTR?181/Nektar (OXY ADF) NOP Receptor MEs Collegium 195 (Hydrocodone Base ADF) Generic estimates based on patent exciusivity expirat?aa date in Grange Book? or iitigation settiements, Noramco Product Management CONFIDENTIAL .15 . Noramco Position: 'L?unc?ed Development 75333 Case: DOC #1 2389-1 Filed: 08/14/19 77 Of 97. PagelD#: 393060 ?Ii? -: - .- .. ?6r. -. w? ?asis. The Nal-Famlly Not controlled Not controlled Also Not Naltrexol (Orexigen) Naloxanazine (Motac) Naloxol (Nektar) Nalfurafene (Acologix) Morphine-6?glucuronide (CENES) Cm?l?mlial 76 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 78 of 97. PageID 393061 The Value of Chemical Oxycodone API is Conversion efficiency increased by 10% it Overall right?first?time in production increased by 5% Plant occupancy reduced by 25% Standard costs reduced by 7% from 2013 to 2015 CONFIDENTIAL . .{gag Tasman Codeine API is Reduced manufacturing steps by 60% Eliminated reliance on Turkey is Leveraged Tasmanian Alkaloids Standard costs reduced by 36% from 2013 to 2015 Cw?dwt?m CONFIDENTIAL a 3' . Case: Doc 2389-1 Filed: 08/14/19 80 of 97. PagelD#: 393063 at?, . . '1 E: . mfg: Important Notice Management believes the information provided in this presentation on the narcotic active pharmaceutical ingredients business and related manufacturing operations (the ?Business?) conducted by Noramco, Inc. (?Noramco?) and Tasmanian Alkaloids Pty. Ltd. is accurate and reliable as of the date of this presentation unless another date is indicated. However, neither Noramco nor any of its affiliates in the Johnson Johnson Family of Companies make any representation or warranty, express or implied, as to the accuracy or completeness of such information. Only those agreements, representations and warranties contained in a definitive written purchase agreement between Noramco and the successful bidder shall have any legal effect. Prospective purchasers are expected to conduct their own due diligence investigation and analysis, and not rely on the information and description of the Business provided herein. In addition, this presentation contains fonNard-Iooking statements and information. Neither Noramco nor its affiliates make anv representation or warranty, express or implied. as to the accuracy or completeness of such fonNard-lookinq statements and information in this presentation. The audience should not rely upon any forward-looking statement or information in this presentation because Noramco and its affiliates give no assurance such statements or information will be realized. Each potential purchaser is expected by Noramco to do its own analvsis as to the future prospects of the Business. {Te?fident?zal L2 CONFIDENTIAL may *m . gs on Case: Doc 2389-1 Filed: 08/14/19 81 of 97. Page D#: 393064 if Supplemental Content it Financial Detail 1: Product Revenue Split by Geography by Product Family Detail 2: Materials Supplied to Affiliates Detail 3: Inventory By Product and Region Detail 4: Detail by Year Detail 5: Value of Improvements to Oxycodone and Codeine It Scope of Sale Information Detail 6: Product Transitions Needed and Draft Timeline Detail 7: Volumes For Capacity Analysis Detail 8: Headcount by Function by Site it Tasmanian Alkaloids Information: CONFIDENTIAL Detail 9: Tasmania land area grown split by TasAIk and GSK Detail 10: Alkaloid content detail for thebaine and codeine Con?denbal a. - {rag Case: Doc 2389-1 Filed: 08/14/19 82 of 97. Pagel 393065 :1 11? a Swag ?Kit; Beta: . evenue ro uc egion (Smm, n-audited) CAGR North America Sales Oxycodone 61 86 82 93 94 94 Hydrocodone 36 40 41 34 52 38 Morphine Sulfate 16 15 19 18 20 20 Codeine Phosphate 9 13 10 11 13 16 Buprenorphine HCI 1 3 4 4 6 11 Hydromoprhone 2 3 9 7 Oxymorphone 1 2 4 7 Other 15 11 11 14 13 19 Total N.A. Sales 5 140 171 174 182 210 212 8.6% Growth vs Previous Yr 0.1% 22.2% 1.4% 5.1% 15.2% 1.0% ROW Sales Codeine Phosphate prenorphine Base 14 16 14 12 14 15 Other 3 9 10 9 6 12 Total ROW Saies 24 36 35 25 25 32 6.0% Growth vs Previous Yr 14.3% 51.7% -28.4% 1.5% 26.6% Narcotic Raw Material Sales Narcotic Raw Mate rial 25 33 24 24 22 16 White Seed 13 17 19 19 Total Narcotic Raw Mate rial 38 50 43 43 22 16 46.1% Growth v5 Previous Yr 42.2% 31.4% ?14.4% ?47.2% -28.8% Growth vs Previous Yr eSaiestEx . .. 83% Growth vs Previous Yr 2.5% 26.5% 0.4% 5% 13.5% 3.7% Cora?drmt?al CONFIDENTIAL Case. 1: 17- md- 02804- DAP Doc#: 2389- 1 Filed. 08/14/19 83 of 97 PagelD#: 393066 Detail 2: Products to Affiliates (Kilograms, Un-Audited) Mg mwm? Affiliates sales are by volume of total sales. Total Volume for 2015: ~177,000kg to 3rd Parties (no ~15,000kg to Affiliates and Future 3rd Party Volume (Kg) to Affiliates 9 Future Trade Sales 1, 2010 2011 2012 2013 2014 2015 LT Codeine Phosphate 3,000 2,975 9,174 9,433 8,930 7,178 Hydromorphone HCI 621 519 617 671 522 592 Tapentadol HCI 0 7,198 11,692 11,903 6,133 7,318 Fentanyl 4 13 5 Total Volume (kg) 3,621 10,692 21,483 22,011 15,598 15,093 Note: Historical sales revenue shown elsewhere do not reflect affiliate sales. Coefir?ent?al if} CONFIDENTIAL Case. 1: 17- md- 02804- DAP Doc#: 2389- 1 Filed. 08/14/19 84 of 97 Page D#: 393067 g} 1 $62 Detail 3: Inventory By Prod uct and Region (Sm n-Audlted) I . 2014 Noramco US inventom Actual Thebaine 17.1 Oxycodone 15.1 Morphine Sulfate 11.3 Hydrocodone 10.7 Buprenorphine 8.1 Codeine Phosphate 7.0 Oxymorphone 4.2 Hydromorphone 3.2 Other 5 5.7 Total Noramco US inventory 5 82.5 Tasmanian Alkaloids inventog Narcotic Ra Mater'al 56.0 . . ?l held per safety stock clause In 7.1 MW Total ?mania Mk Inventory 5 63.0 contract. be depleted In 2017 Schaffhausen/Cmomventorv Buprenorphine 25.1 a I I Cl 'lle I h. Codeine Phosphate 133 FIG es Ul or new pro UC aunc Ing Noroxymorphone 11.7 Naloxone 11.3 . . Naitrexone 43 Includes-duplicate Inventory at CMO 5 1.2 due to Cllag Slte eXIt Other 5 8.1 Total Schaffhause inventory 75.2 Gee! inventory Buprenorphine 2.7 Total Geel inventory 2.7 Total 2014 Inventory 5 223.4 Con?dential a CONFIDENTIAL Case: 1: 7- md- 02804- DAP Doc#: 2389- 1 Filed. 08/14/19 85 of 97 PagelD#: 393068 Detail 4: 56 A Overview (5mm, Un-audited) WWCW Currency:$USD Million Overview 2013 2014 2015 LT - Selling Marketing 5 5 5 Distribution 2 2 2 Regulatory Affairs 1 1 1 - Legal 5 3 2 Admin 4 4 4 Total 17 15 14 Out of Ordinary Expense PF Legal Expenses (4) (2) (1) Total Adjusted 13 13 13 Confidential CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 86 of 97. PageID 393069 Detail 5: Improvements in Profitability . Inaul ?slag-2g; . 69%? ?a ?gs? 1: 4 s31 WP Oxycodone API Tasman Codeine API if all volume were OXY 3 in 2015 If all volume were Tasman in 2015 then GP would improve from then GP would improve from te From 2013 to 2015: From 2013 to 2015: 0 Conversion efficiency Reduced manufacturing steps increased by 10% by 60% Overall right-first-time in production increased by 5% Eliminated reliance on Turkey Leverages Tasmanian Alkaloids Plant occupancy reduced by 25% Pl CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 87 of 97. Page D#: 393070 ?if: Detail 6: API Transfer for Transition Services Agreement WWCQ DRAFT, Subject to Change 2017 2018 2019 2020 2021 2022 2023 2024 Athens, Georgia Products i? Hydromorphone (Athens to Wilmington) Customer Transitions Buprenorphine Base and HG (Athens to CMO) Tape ntadoi (Athe ns to CMO) 1 Step (Athens to Wiimington) Hydrocodone Intermediates (Complete in Wilmington) Customer Transitions Fentanyl API (B6 to or buy) Geel, Beigium Products Buerenorphine Base (Geel to CIVIC, In Progress) Customer Transitions Buprenorphine (Geel to CMO) Customer Transitions Schauffhausen Switzerland Products Dronabinoi (Schaffhausen to CIVIC, Inhprogressi Customer Transitic Legend: Buyer: Transfer, Validate, and Stability Buyer: Samples Available of Validated Filed API Customer: Validate, Stability, Fiie Coefidential if} CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 88 97. PageID 393071 Deta ll 7: Strategic Vo es Pro Jection Used ?Si; od I i (Tons) @mwm 2017 2018 2019 2020 2021 2022 Oxycodone API 54 55 56 58 59 60 Hydrocodone Bitrate API 32 33 34 35 36 38 Buprenorphine Base and 1.9 2.0 2.3 2.6 2.9 3.2 HydromorphoneAPI (w/J8d) 3.0 3.3 3.5 3.5 3.5 3.6 Oxymorphone 1.2 1.2 1.3 1.3 1.4 1.5 Tasman Codeine API Worldwide 58 64 66 77 76 76 Morphine Sulfate 21 17 15 15 15 15 nidate HCE (excludesJ&Naloxone API 3.3 3.8 4.8 4.8 4.8 4.8 Naltrexone Base and API 1.5 2.0 2.9 3.9 4.5 5.0 Amphetamines 1.5 4.9 6.6 9.9 12.3 12.0 Bromide API 3.3 6.6 8.0 8.5 8.5 9.0 Noroxymorphone ?ntermediate 2.4 2.4 2.5 2.5 2.5 2.5 Other (intermediates, Small Volume APlsTrade Sales of Narcotic Raw Mate rial (CPS-T, C, O) 112 131 135 138 140 141 Please Note: These are strategic volume forecasts including Pipeline Products and are not a guarantee of future business. Confidential ?10 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 89 of 97. Page D#: 393072 .1, Fm - . ?in Detail 8: Headcount Summary by Site -- 4% Wilmington Tasmania Athens Cilag Shared Total 197 196 38 24 28 483 Manufacturing 139 131 1 1 7 279 Operations (Ops, Utilities, Shipping) 93 77 Field Staff 17 Maintenanceand Tech Ops 27 20 1 Engineering 5 8 DEA Secufity 4 1 EHS 6 3 Planning and Procurement 4 1 3 Compiiance 34 21 3 3 12 73 Quaiity 34 20 Regulatory 1 3 3 Scientific and Technical Support 4 28 32 15 79 Research Innovation (Ag, Chemical, etc) 12 3 4 Factory Support, Customer, and 4 16 29 11 Sales, Marketing, Customer Service 8 3 2 5 0 18 Administrative 11.5 13 0 9 33.5 Finance General Management 1 1 1 Legai 0.5 2 Please Note: There will invariably be movement of headcount before closing, additionally definitions being used are intended to give potential purchasers a relative idea of the proportions of personal in various locations and functions, often personnel perform more than one function. Ccafident?al ?11 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 90 of 97- Page D#: 393073 fr a Detail 9. Tasmanian Alkalords Growmg Area Tasmanian Alkaloids Growing Area 20000 18000 16000 14000 12000 10000 9% Morphine Area 8000 lTasman Codeine Area 6000 I Oripavine Area Hectares Contracted 4000 KThebaine Area 2000 Morphine Area Tasman Codeine Area Oripavine Area Thebaine Area Cm?r?entiai 3.2 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 91 of 97. Page D#: 393074 Detail 10. Content of Alkalmds Overtime Thebaine in Crop 450 400 i50 250 200 150 LOO 050 000 Codeine in Crop 332 330 328 i26 324 322 320 318 2012 2013 2014 2015 Cm?denmi 3.2% CONFIDENTIAL Case: Doc Filgg?gO8/14/19 92 of 97. PageID 393075 rmect Groun Kev Financiai Metrics Currency: Million USD 2013 Actual 2014 Actual 2015 LT Net Income 5 30 37 30 Depreciation/Amortization 1 6 1 6 1 6 Capital Expenditures 25 23 19 Year End Inventory 5 203 223 229 AR Days 54 53 60* AP Days 48 60 60* Note: 2015 AR Days of 60 reflects contractuat payment terms for majority of customers. - 2015 AP Days of 60 is in-Hne with standard 3N1 poficy. CONFIDENTIAL Cmm?d?n?ai CONFIDENTIAL a f' . Case: Doc 2389-1 Filed: 08/14/19 94 of 97. PagelD#: 393077 at?, . . '1 E: . mfg: Important Notice airmail/item Management believes the information provided in this presentation on the narcotic active pharmaceutical ingredients business and related manufacturing operations (the ?Business?) conducted by Noramco, Inc. (?Noramco?) and Tasmanian Alkaloids Pty. Ltd. is accurate and reliable as of the date of this presentation unless another date is indicated. However, neither Noramco nor any of its affiliates in the Johnson Johnson Family of Companies make any representation or warranty, express or implied, as to the accuracy or completeness of such information. Only those agreements, representations and warranties contained in a definitive written purchase agreement between Noramco and the successful bidder shall have any legal effect. Prospective purchasers are expected to conduct their own due diligence investigation and analysis, and not rely on the information and description of the Business provided herein. In addition, this presentation contains fonNard-Iooking statements and information. Neither Noramco nor its affiliates make anv representation or warrantv, express or implied. as to the accuracy or completeness of such fonNard-lookinq statements and information in this presentation. The audience should not rely upon any forward-looking statement or information in this presentation because Noramco and its affiliates give no assurance such statements or information will be realized. Each potential purchaser is expected by Noramco to do its own analvsis as to the future prospects of the Business. {Te?fident?zal L2 CONFIDENTIAL Case: Doc 2389-1 Filed: 08/14/19 95 of 97. Page D#: 393078 min 699Supplemental Content ii Detail 1: Additional Tax Information - Tax Step Up ll Detail 2: Finance Schedule -- Cash Flow Reconciliation ?ei?tiidemiai CONFIDENTIAL wt atCase: Doc 2389-1 Filed: 08/14/19 96 of 97. PageID 393079 Detail 1: Additional Tax Information - Tax Step Up 53?; we l? Johnson Johnson intends that the buyer join it in executing a Section 338 election under the Internal Revenue Code in relation to the sale ofthe US. corporation included in the transaction. li Additional information regarding the tax basis will be provided in the next round of the process. Cmiidwtial {ii CONFIDENTIAL Case: DOC #1 2389-1 Filed: 08/14/19 97 Of 97. Page D#: 393080 as: at? ?as: Detail 2: Finance Schedule -- Cash Flow Reconciliation Un-audlted) 2013 Actual 2014 Actual 2015 LT WWNF 1&1 Net Income 30 37 30 Plus: Depreciation/Amortization 16 16 16 (Inc) Dec - AR 16 (14) (0) (Inc) Dec - Other Assets Liabilities (2) 6 0 (Inc) Dec - Inventory (49) (20) (7) Op I I II Capital Expenditures (25) (23) (19) Notes: - Accounts Payable are included in Other Assets Liabilities. - Free Cash Flow impacted by increase of inventory from 2013 - 2015 - inventory increase related to transition from JNJ manufacturing sites to contract manufacturing sites and introduction of new products. Confidential CONFIDENTIAL