[January 16, 2014]

Alvogen and Lotus Pharmaceuticals Merge Asian Operations to Create Compelling Platform for International Growth

Alvogen, the multinational pharmaceuticals company, agreed in December 2013 to become the majority shareholder in Taiwanese Lotus Pharmaceuticals ("Lotus") through a private placement of newly issued shares, acquiring up to 151 million shares in the company. The total transaction value will be approximately US$200 million (approx. NTD 6 billion). As a results of the transaction, Alvogen´s shareholding will be approximately 67% in Lotus.

Robert Wessman, Chairman & CEO of Alvogen

Following the above transaction, Alvogen and Lotus today announce that Lotus is using the proceeds of the share issue to acquire several of Alvogen's businesses in Asia. Exclusive distribution rights for two high-value biopharmaceuticals for selective Asian markets are under negotiations between the parties. Transaction value is approximately US$ 200 million.

The combination of Alvogen's strong geographic coverage in the US, Central and Eastern Europe and Asia with Lotus' strategically important foothold in the Taiwanese market and its growing US product pipeline is expected to generate significant opportunities to drive revenue growth, margin enhancement and create further value for the two companies. Both Alvogen and Lotus will benefit from the increased scale, portfolio and geographic reach.

Key Benefits of the Transaction

• Combined with Alvogen's October 2012 purchase of the South Korean company, Kunwha Pharmaceuticals, the partnership with Lotus will significantly strengthen Alvogen's position in the key Asia Pacific region with enhanced reach into Taiwan and China and a new market presence in Japan.
• Alvogen will gain access to high potency and cytotoxic oral formulation capacity through Lotus' FDA approved manufacturing facility, as well as securing broad experience in marketing and distribution in the region. Together, the companies will have manufacturing and product development capabilities in North America, Taiwan, South Korea, and Romana.
• Through Alvogen, Lotus will gain a sales and marketing network in more than 30 countries that will enhance its export opportunities as well as provide access to Alvogen's global pipeline for the Taiwanese market.
• Alvogen and Lotus will collaborate in the important US market, by developing more difficult to produce generic products.

Charles Lin, Chairman of Lotus, added "This partnership represents an exciting development for Alvogen and Lotus, both of which will benefit from increased scale, a larger portfolio and broader geographic reach. The new Group will represent compelling value for our shareholders, and creates a strong platform for growth in Asia Pacific and internationally."

Both transactions are subject to shareholder and regulatory approvals, and closing is expected in the second quarter 2014.

About Alvogen

Alvogen is a multinational, privately owned pharmaceuticals company focused on developing, manufacturing and distributing generic, brand, over-the-counter brands (OTC) and biosimilar products. With more than 200 pharmaceutical projects in development and registration, the group's product portfolio consists of a broad range of leading molecules for the treatment of conditions in the fields of: oncology, cardiology, respiratory, neurology and gastroenterology. Alvogen has commercial operations in over 30 countries with 2000 employees. North America is Alvogen's single largest market and other key markets include: South-Korea, Romania, Bulgaria, Hungary, Russia and China. Visit: www.alvogen.com

About Lotus Pharmaceuticals

Lotus Pharmaceuticals is a specialty pharmaceuticals company in Taiwan with FDA-inspected manufacturing facilities. The company's product portfolio emphasizes difficult to formulate CNS (central nervous system) and oral oncology drugs. The company currently has 278 employees, with headquarters in Tapei, Taiwan.

Visit: http://www.lotuspharm.com.tw/

Taiwanese market backdrop for editors:

The Taiwanese pharmaceutical market is currently valued at around US$6 billion and is expected to grow by about 5% over the next five years. The share of the generic market by volume is around 40%. Taiwan is a hospital-based market, with hospitals representing some 78% of the market, followed by retail drugstores and GP/Clinics. The Taiwanese economy is closely linked to China and, through recently signed agreements including the Economic Cooperation Framework Agreement (ECFA), the Taiwanese pharmaceutical industry will be able to profit from wider access to the Chinese market.

Note to editors:

For more information on Alvogen and to download logo or images of senior management, please visit the Alvogen website, www.alvogen.com.

Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20140116006005/en/

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