1. The Pharmaceutical Market Evolution Petru Crăciun ZF Pharma – Bucharest 2015, September 22 nd

2. This document should not be distributed without Cegedim authorization – Copyright 2015 2 Crisis Lessons - 1 st Proposal “Due to historical and recent evolutions, as well as the EU membership of Romania, the pharmaceutical market tends to follow the price convergence of the European market with all associated consequences (price increase in local currency, significant trade deficit but stable price of treatment in euros) and risks (parallel trade)”

3. This document should not be distributed without Cegedim authorization – Copyright 2015 3 Crisis Lessons - 2 nd Proposal “There is no such thing as a single administrative decision to control the health needs; the matter is so complex that no one is able to predict its exact evolution in the mid- and long run. The best way to ensure performance rewarding is the healthy and fair competition and the continuous update and adjustment to all relevant evolutions”

4. This document should not be distributed without Cegedim authorization – Copyright 2015 4 Crisis Lessons - 3 rd Proposal “Our common work is: as an industry, to provide the right tools (products) for treatment and prevention; as health decision-makers, to ensure a reasonable framework to achieve an accessible and affordable treatment for all Romanian citizens. Let’s try to better adapt to the switch from the offer-driven to the demand-driven model of doing business”

5. This document should not be distributed without Cegedim authorization – Copyright 2015 5 Rx Price Reduction Impact

6. This document should not be distributed without Cegedim authorization – Copyright 2015 6 New Price Reduction – July 1 st  New Price List:  Average (non-weighted) Retail Price:- 9.4%  1 st Quarter Impact (backward) Estimation:  Wholesaler level:- 9.2%  Manufacturer level:-12.6%  2015 Market Impact Estimation:- 2.8%  Patient & HCPs Questions:  Will product affordability improve?  Will product availability be impacted?  Industry Questions:  Is EU Single Price a Suitable Strategy?  Is Romania – an EU country – a Market of Interest?  Product P&L:Continuation/Discontinuation

7. This document should not be distributed without Cegedim authorization – Copyright 2015 7 Short-term Forecast (July 2015 - June 2016)

8. This document should not be distributed without Cegedim authorization – Copyright 2015 8 Key Issues  “Common” Drugs:  Not all products will survive at current prices  Alternative products will be more expensive than the existing ones  Total expenditure will not fall  “Premium” Drugs:  Price difference makes them more attractive for “rich” EU markets  Availability for Romanian patients will diminish  Create stronger premises for tougher HQ decisions  Reimbursement:  If reimbursement go below 50% of the value, market influence decrease  “Common” drugs cannot pay for “Premium” drugs (claw-back)  Pricing:  Latest by the end of 2016 we will be forced to review current pricing

9. Thank you for your attention  Email: petru.craciun@cegedim.competru.craciun@cegedim.com www.cegedim.com