AtralCipan

Financial Performance of AtralCipan Current sales at around 37Mn Euros projected to grow to 43 Mn by 2015 Sales CAGR 5.2% from 2012-2015 Atral and Cipan EBITDA are expected to achieve 8.5 Mn in 2013, with an EBITDA margin established around 20%. Expected EBITDA for the forecasted period will be around 9.1%. Net Income Margin will also stabilize at around 5 % of Revenues (~ 2.6 Mn Euros) growing at CAGR of 20%.

Relative Valuation Expected EBITDA for AtralCipan in 2015 will be 8.8 Mn Euros. The average Enterprise/EBITDA multiple for healthy Pharma companies is around 4 times. Applying this multiple to AtralCipan EBITDA in 2015, yields a value in 2015 of o Value in 2015=8.8*4=35.2 Mn Euros. o Value today=10.8642 Mn Euros Assuming the median probability of distress to be around 50% o Fair Value of AtralCipan=5.4Mn Euros.

Concerns Approx. Approx. 85-90% of the revenue from Minocycline and Minocycline derivatives such as Limecycline & Sanciclyne . Forecasted downward pressure on drug prices may have negative impact on GC

Additional Information/Clarification required a) Detailed P&L, Balance Sheet & Cash flow for FY 2010-2015 b) Detailed clarification on revenue stream pertaining to other income and 3rd party income. Also need to have clarity on future certainty of income in case of technology transfer to Venezuela Govt c) Justification on reduction of Other Expenses, Personnel Costs and its basis d) Need to understand the nature of expense - Supply & External Services