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CHEMPACIFIC CORPORATION

   Contract Manufacturing of APIs,
Intermediates and Specialty Chemicals
PRESENTATION OUTLINE


   Company Overview
   Unique Business Model
   Chemistry and Technology
   Facilities and Equipment
   Zhejiang Chempacific
   Competitive Advantage
   Contact Information
COMPANY OVERVIEW

   Began as a New Jersey Corporation in 1995

   Moved to Baltimore, Maryland in 1999

   >20 employees in the U.S. operation

   100% U.S. owned subsidiary in China
     • Zhejiang ChemPacific located near Shanghai
     • Staffed with over 100 employees
COMPANY OVERVIEW


       ZheJiang ChemPacific Growth History
                            2005                 2008             2011
                        Started GMP          Successful FDA   Successful FDA
                      Training Program         Inspection       Inspection




      1998
ChemPacific China
  Established in
    Hangzhou



                  2000-2004                 2005-2006
                Manufacture of           China Operations
                 >100 Custom              Consolidation
                   Products                  In Zhapu
COMPANY OVERVIEW

                 Executive Team

 Chen Zhou, Ph.D. CEO
     Ph.D. New Mexico State Univ.
     Post Dr. University of Maine

 Tony Liang, MS, MBA - COO/China & US
  Operations, Sales Marketing
     Worked at Novartis Pharmaceuticals
     MBA New York

 Rebecca Chiu, MS - VP, Global QA/QC
     Worked at Pfizer 2.5 years
     Worked at Novartis Pharma 32.5 years
COMPANY OVERVIEW

             Other Key Personnel
 Wuyi Wang, Ph.D. - Senior Director of cGMP
  program, global
 Xianghui Tan, Ph.D. - US Director of cGMP
  Production
 Jian Huang, Ph.D. - CTO of China Operations
 James Havlin, MBA - VP of Sales and Marketing
 Peter Wu, PhD. - Head of QC, US
 Jinliang Zhang - General Manager, China
 Liping Gao, Ph.D - Head of QA/QC, China
COMPANY OVERVIEW


   Core Business:
           Research and Production of Fine Chemicals, Industrial
            Chemicals, Intermediates and APIs
   Resources:
           Research-driven U.S. Laboratories
             •   Discover and develop products
             •   Perform small scale cGMP/ Non-GMP manufacturing up to
                 50kg
   Cost-effective plants in China:
           Large scale non-GMP/cGMP manufacturing up to 100
            metric ton
COMPANY OVERVIEW


   R&D Contract and Custom Synthesis:
       Unique Projects for Hard to Find Molecules
       High Levels of Communications with Researcher
       Tech Transfer to China for large scale production

   Custom Manufacturing/Intermediates:
       Starting with Customer Process or Just a Structure
       Process Development and Optimization performed in the
        US
       Scale-Up to Commercial Quantities performed in China
UNIQUE BUSINESS MODEL

                      US Facility

   Non-GMP and cGMP Manufacturing
   Process Development
   Lab Scale (up to 1kg)
   Kilo Lab (up to 5 kg)

                     China Facility

   Non-GMP and cGMP Manufacturing
   Scale-Up Manufacturing
   Pilot Plant (5 kg to 1000kg)
   Commercial (1 MT to 100MT)
CHEMISTRY AND TECHNOLOGY


 HF and KF Fluorination

 Per-fluorinated Aromatics

 Suzuki Coupling Organics

 Organometallic/Oxygen Sensitive

 Chiral Synthesis

 Unnatural Amino Acids

 Indolines and Indoles

 Heterocyclic Synthesis
CHEMISTRY AND TECHNOLOGY


 Synthetic organic chemistry expertise
  • Non-patent-infringed process route development

  • Experience in handling a variety of chemistries with
    chiral and non-chiral compounds

  • Chemistry R&D and process validation

  • Modern Analytical facilities
Chemistry and Technology
Example: Chemical Capability- Per-fluorinated Aromatics

A. Per-fluorinated Benzene




B. Per-fluorinated Naphthalene




Commercial Scale
CHEMISTRY AND TECHNOLOGY
       Example: Chemical Capability- 2-bromo-indene
                                              Functionization of 2-Br-Indene
A. 2-Br-Indene Chemistry
                p-TSA
           Br                            Br
                -H2O
      OH
       Commercial Scale
B. Cyclopentadiene Chemistry                         Functionization




                        Tetramethyl Cp




                        Pentamethyl Cp
CHEMISTRY AND TECHNOLOGY
Example: Chemical Capability- Suzuki Coupling Organics




1. RLi handling capability (Organometallic Chemistry Expertise)

2. Low temperature reaction and handling capabilities
FACILITIES AND EQUIPMENT

              Manufacturing Plant in China
ChemPacific Zhejiang:

 11 Acre site (expandable to
  18 acres)
 Capable of Handling Complex
  Projects
 Compartmentalized
  structure gives us the
  capability to expand with
  customers’ market demands
ZHEJIANG CHEMPACIFIC
ZHEJIANG CHEMPACIFIC


    Zhejiang ChemPacific
            Corp.                                           COO                                          Global QA/QC
     Organization Chart                                   Tony Liang                                      Rebecca Chiu


                                                     General Manager
                                                      Jinliang Zhang


                    Vice GM                                                                                 QA/QC
                   Jian Huang                                                                              Liping Gao




Production    R&D       ESH & Engineering                                 Sales                           QA           QC
                                             Materials     Finance                   Administration
  Project     Project     Xiaokang Hu                                  Marketing                      Jianguo Gao   Xingju Wei
 Managers
                                            Jiuwang.liu   Xiaoyan Xi                   Yan Ding
             Managers                                                  Huiling Zhu
ZHEJIANG CHEMPACIFIC
ZHEJIANG CHEMPACIFIC

Chemistry Capabilities:
Synthesis Leads to Manufacturing

Custom Synthesis
    Specialty Chemical Synthesis and Scale-up
      Chemistry from 100 mg to Kilo+
Manufacturing
   Scale-up Chemistry for Metric Ton Scale in
    China Resulting in Commercial Manufacturing
ZHEJIANG CHEMPACIFIC


Chemistry Capabilities: Process Research and
  Manufacturing

Process Research and Development
    Novel Synthetic Route Selection
    Process Optimization and Scale up

Manufacturing of Specialty Chemicals and APIs
   cGMP Synthesis
    Kilo-Scale for Clinical Trials
ZHEJIANG CHEMPACIFIC


   RESEARCH to PROCESS DEVELOPMENT TO PRODUCTION
                                  Zhapu (China)

Process Development and Scale up           Cost Effective API Manufacturing


  Facility & Engineering Design                   API Stability Program
ZHEJIANG CHEMPACIFIC


                  Competitive Advantage
    Low Cost Supported by World-Class Quality

   Raw Material Sourcing Partners
   Locally Produced Equipment and Infrastructure
   Plentiful Supply of Low Cost Labor
   Experienced R&D Chemists and Process Engineers
   Dedicated QC and QA teams
   Complies to cGMP/FDA Q7 Guildance
ZHEJIANG CHEMPACIFIC

      Quality Platform and Systems
     Quality Systems             Risk-based approach
                     Judgment based on good science
      Total Quality Assurance on entire business cycle


ChemPacific Quality Program
                                                         Product
          Platform


                 Chemistry and Technology

       Facilities and Equipment,
       FDA Inspected Facility
  Corporation structure support
ZHEJIANG CHEMPACIFIC

Employees: There are 145 employees in Zhapu, 45% have BS degree and
above.
Hours of operation: 3 shifts in production.
Scheduled facility closures: weeks of Chinese New year, May 1 and Oct. 1.
                                                     Office
              Support
                                                     /Sales
                20%
                                                      10%




        R&D
        16%

                   QA/QC                      Production
                    9%                           44%
ZHEJIANG CHEMPACIFIC
            Facilities and Equipment Zhapu,
                China Manufacturing Plant

ZHEJIANG ChemPacific, Zhapu
  (Jan. 2006 in operation)
 Located in a Modern Industrial Park
 Reaction vessels Up to 5000L
 -78°C Reactor (300 L, 1000L and 2000L)
   Up to 1000 PSI H2 reactor (300L and 1000L)
   High Vacuum/Thin Film Distillation
 Particle Forming Spray Dryer Capability
 Large-Scale Column Chromatography
 Up to MT scale
ZHEJIANG CHEMPACIFIC

  Generic API-Case#1–Pentostatin
                Name: Nipent /Pentostatin
      OH        •Market: Anti-tumor Pharmaceutical
                •Prior API Process: Fermentation
           N
                ChemPacific Process: Total Synthesis of 12 steps
 HN             Zhapu: step 1 to step 6 (non-GMP)
           N    Baltimore: step 7 to step 12 (GMP)
      N
 HO             US Research-China Production:
       O        China: Supply of Advanced Intermediate;
                Baltimore: API Manufacture/DMF Submission

                Summary:
      OH        •ChemPacific Developed the First Chemical Process for API
                •ChemPacific Owns the Pentostatin Process Patent
                •US-China Synergy Made the Cost Manageable for this
DMF No. 18235   Complex Project
ZHEJIANG CHEMPACIFIC



China Production-Case#2
             CO 2H
                             Name: 3,4,5-TricarboxylicAcid-
   HO2 C             CO2 H
                             1-Aminobenzene
                             Market: Specialty Electronic
                             Material
             NH 2

           15,000 kg/Y       US Research-China Production:

                             Baltimore: Process Development
                             China: 3-step Custom Manufacture
ZHEJIANG CHEMPACIFIC


    China Production-Case#3
       H    O
                Name: p-(4-Formylcyclohexyl) Benzonitrile
O               Market: Specialty Electronic Material

                US Research-China Production:
R
                Baltimore: Process Development
                China: 5-step Reaction Sequence for Single
           CN
                Customer
      200 kg
ZHEJIANG CHEMPACIFIC


China Production-Case#4
Name: 2,3-Difluorophenylacetic Acid
Market: Specialty Electronic Material

US Research-China Production:
Baltimore: Process Development
China: 3-step Reaction Sequence for a
Single Customer
       F            F
  F        F    F             OH

                          O

                        1000 kg
ZHEJIANG CHEMPACIFIC

Generic API –Case#5– Melphalan HCl

                                               DMF No. 20544


Market: Anti-Cancer, Anti-Neoplastic,
Pharmaceutical API

ChemPacific Process:
   Total Synthesis of 8 steps
   4 steps to starting material – made in Zhapu (non-GMP)
   from SM to the step 7 – made in Zhapu (GMP)
   last step – was in US (GMP) – has been transferred to
    China
COMPETITIVE ADVANTAGE

Domestic Presence
    Convenience for U.S.
     customers
    Same time zone
    No language barrier
    Secure business practices
    Troubleshooting handled
     locally

Small company
      Personal attention
      Flexibility
      Quick delivery time
      Low overhead- pass lower
       costs to our clients
COMPETITIVE ADVANTAGE


                        Experience

 Expertise in a wide range of chemistries

 Experienced in manufacturing of hard to find molecules

 Experienced technical team who recognize the
  challenges of transitioning from bench to pre-scale
  operations.
 Reliable and Financially Stable

 A track record of completed projects and satisfied
   customers
ZHEJIANG CHEMPACIFIC
ZHEJIANG CHEMPACIFIC
ZHEJIANG CHEMPACIFIC
ZHEJIANG CHEMPACIFIC
ZHEJIANG CHEMPACIFIC
ZHEJIANG CHEMPACIFIC
ZHEJIANG CHEMPACIFIC
CHEMPACIFIC CORPORATION


  Some call it the best of both worlds;




        we call it, The Best of One World.


For more information please contact Chris McRandal, cmcrandal@chempacific.com, (412) 973-9716

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ChemPacific Presentation, Best of Both Worlds

  • 1. CHEMPACIFIC CORPORATION Contract Manufacturing of APIs, Intermediates and Specialty Chemicals
  • 2. PRESENTATION OUTLINE  Company Overview  Unique Business Model  Chemistry and Technology  Facilities and Equipment  Zhejiang Chempacific  Competitive Advantage  Contact Information
  • 3. COMPANY OVERVIEW  Began as a New Jersey Corporation in 1995  Moved to Baltimore, Maryland in 1999  >20 employees in the U.S. operation  100% U.S. owned subsidiary in China • Zhejiang ChemPacific located near Shanghai • Staffed with over 100 employees
  • 4. COMPANY OVERVIEW ZheJiang ChemPacific Growth History 2005 2008 2011 Started GMP Successful FDA Successful FDA Training Program Inspection Inspection 1998 ChemPacific China Established in Hangzhou 2000-2004 2005-2006 Manufacture of China Operations >100 Custom Consolidation Products In Zhapu
  • 5. COMPANY OVERVIEW Executive Team  Chen Zhou, Ph.D. CEO Ph.D. New Mexico State Univ. Post Dr. University of Maine  Tony Liang, MS, MBA - COO/China & US Operations, Sales Marketing Worked at Novartis Pharmaceuticals MBA New York  Rebecca Chiu, MS - VP, Global QA/QC Worked at Pfizer 2.5 years Worked at Novartis Pharma 32.5 years
  • 6. COMPANY OVERVIEW Other Key Personnel  Wuyi Wang, Ph.D. - Senior Director of cGMP program, global  Xianghui Tan, Ph.D. - US Director of cGMP Production  Jian Huang, Ph.D. - CTO of China Operations  James Havlin, MBA - VP of Sales and Marketing  Peter Wu, PhD. - Head of QC, US  Jinliang Zhang - General Manager, China  Liping Gao, Ph.D - Head of QA/QC, China
  • 7. COMPANY OVERVIEW  Core Business:  Research and Production of Fine Chemicals, Industrial Chemicals, Intermediates and APIs  Resources:  Research-driven U.S. Laboratories • Discover and develop products • Perform small scale cGMP/ Non-GMP manufacturing up to 50kg  Cost-effective plants in China:  Large scale non-GMP/cGMP manufacturing up to 100 metric ton
  • 8. COMPANY OVERVIEW  R&D Contract and Custom Synthesis:  Unique Projects for Hard to Find Molecules  High Levels of Communications with Researcher  Tech Transfer to China for large scale production  Custom Manufacturing/Intermediates:  Starting with Customer Process or Just a Structure  Process Development and Optimization performed in the US  Scale-Up to Commercial Quantities performed in China
  • 9. UNIQUE BUSINESS MODEL US Facility  Non-GMP and cGMP Manufacturing  Process Development  Lab Scale (up to 1kg)  Kilo Lab (up to 5 kg) China Facility  Non-GMP and cGMP Manufacturing  Scale-Up Manufacturing  Pilot Plant (5 kg to 1000kg)  Commercial (1 MT to 100MT)
  • 10. CHEMISTRY AND TECHNOLOGY  HF and KF Fluorination  Per-fluorinated Aromatics  Suzuki Coupling Organics  Organometallic/Oxygen Sensitive  Chiral Synthesis  Unnatural Amino Acids  Indolines and Indoles  Heterocyclic Synthesis
  • 11. CHEMISTRY AND TECHNOLOGY  Synthetic organic chemistry expertise • Non-patent-infringed process route development • Experience in handling a variety of chemistries with chiral and non-chiral compounds • Chemistry R&D and process validation • Modern Analytical facilities
  • 12. Chemistry and Technology Example: Chemical Capability- Per-fluorinated Aromatics A. Per-fluorinated Benzene B. Per-fluorinated Naphthalene Commercial Scale
  • 13. CHEMISTRY AND TECHNOLOGY Example: Chemical Capability- 2-bromo-indene Functionization of 2-Br-Indene A. 2-Br-Indene Chemistry p-TSA Br Br -H2O OH Commercial Scale B. Cyclopentadiene Chemistry Functionization Tetramethyl Cp Pentamethyl Cp
  • 14. CHEMISTRY AND TECHNOLOGY Example: Chemical Capability- Suzuki Coupling Organics 1. RLi handling capability (Organometallic Chemistry Expertise) 2. Low temperature reaction and handling capabilities
  • 15. FACILITIES AND EQUIPMENT Manufacturing Plant in China ChemPacific Zhejiang:  11 Acre site (expandable to 18 acres)  Capable of Handling Complex Projects  Compartmentalized structure gives us the capability to expand with customers’ market demands
  • 17. ZHEJIANG CHEMPACIFIC Zhejiang ChemPacific Corp. COO Global QA/QC Organization Chart Tony Liang Rebecca Chiu General Manager Jinliang Zhang Vice GM QA/QC Jian Huang Liping Gao Production R&D ESH & Engineering Sales QA QC Materials Finance Administration Project Project Xiaokang Hu Marketing Jianguo Gao Xingju Wei Managers Jiuwang.liu Xiaoyan Xi Yan Ding Managers Huiling Zhu
  • 19. ZHEJIANG CHEMPACIFIC Chemistry Capabilities: Synthesis Leads to Manufacturing Custom Synthesis  Specialty Chemical Synthesis and Scale-up  Chemistry from 100 mg to Kilo+ Manufacturing  Scale-up Chemistry for Metric Ton Scale in China Resulting in Commercial Manufacturing
  • 20. ZHEJIANG CHEMPACIFIC Chemistry Capabilities: Process Research and Manufacturing Process Research and Development  Novel Synthetic Route Selection  Process Optimization and Scale up Manufacturing of Specialty Chemicals and APIs  cGMP Synthesis  Kilo-Scale for Clinical Trials
  • 21. ZHEJIANG CHEMPACIFIC RESEARCH to PROCESS DEVELOPMENT TO PRODUCTION Zhapu (China) Process Development and Scale up Cost Effective API Manufacturing Facility & Engineering Design API Stability Program
  • 22. ZHEJIANG CHEMPACIFIC Competitive Advantage Low Cost Supported by World-Class Quality  Raw Material Sourcing Partners  Locally Produced Equipment and Infrastructure  Plentiful Supply of Low Cost Labor  Experienced R&D Chemists and Process Engineers  Dedicated QC and QA teams  Complies to cGMP/FDA Q7 Guildance
  • 23. ZHEJIANG CHEMPACIFIC Quality Platform and Systems Quality Systems Risk-based approach Judgment based on good science Total Quality Assurance on entire business cycle ChemPacific Quality Program Product Platform Chemistry and Technology Facilities and Equipment, FDA Inspected Facility Corporation structure support
  • 24. ZHEJIANG CHEMPACIFIC Employees: There are 145 employees in Zhapu, 45% have BS degree and above. Hours of operation: 3 shifts in production. Scheduled facility closures: weeks of Chinese New year, May 1 and Oct. 1. Office Support /Sales 20% 10% R&D 16% QA/QC Production 9% 44%
  • 25. ZHEJIANG CHEMPACIFIC Facilities and Equipment Zhapu, China Manufacturing Plant ZHEJIANG ChemPacific, Zhapu (Jan. 2006 in operation)  Located in a Modern Industrial Park  Reaction vessels Up to 5000L  -78°C Reactor (300 L, 1000L and 2000L)  Up to 1000 PSI H2 reactor (300L and 1000L)  High Vacuum/Thin Film Distillation  Particle Forming Spray Dryer Capability  Large-Scale Column Chromatography  Up to MT scale
  • 26. ZHEJIANG CHEMPACIFIC Generic API-Case#1–Pentostatin Name: Nipent /Pentostatin OH •Market: Anti-tumor Pharmaceutical •Prior API Process: Fermentation N ChemPacific Process: Total Synthesis of 12 steps HN Zhapu: step 1 to step 6 (non-GMP) N Baltimore: step 7 to step 12 (GMP) N HO US Research-China Production: O China: Supply of Advanced Intermediate; Baltimore: API Manufacture/DMF Submission Summary: OH •ChemPacific Developed the First Chemical Process for API •ChemPacific Owns the Pentostatin Process Patent •US-China Synergy Made the Cost Manageable for this DMF No. 18235 Complex Project
  • 27. ZHEJIANG CHEMPACIFIC China Production-Case#2 CO 2H Name: 3,4,5-TricarboxylicAcid- HO2 C CO2 H 1-Aminobenzene Market: Specialty Electronic Material NH 2 15,000 kg/Y US Research-China Production: Baltimore: Process Development China: 3-step Custom Manufacture
  • 28. ZHEJIANG CHEMPACIFIC China Production-Case#3 H O Name: p-(4-Formylcyclohexyl) Benzonitrile O Market: Specialty Electronic Material US Research-China Production: R Baltimore: Process Development China: 5-step Reaction Sequence for Single CN Customer 200 kg
  • 29. ZHEJIANG CHEMPACIFIC China Production-Case#4 Name: 2,3-Difluorophenylacetic Acid Market: Specialty Electronic Material US Research-China Production: Baltimore: Process Development China: 3-step Reaction Sequence for a Single Customer F F F F F OH O 1000 kg
  • 30. ZHEJIANG CHEMPACIFIC Generic API –Case#5– Melphalan HCl DMF No. 20544 Market: Anti-Cancer, Anti-Neoplastic, Pharmaceutical API ChemPacific Process:  Total Synthesis of 8 steps  4 steps to starting material – made in Zhapu (non-GMP)  from SM to the step 7 – made in Zhapu (GMP)  last step – was in US (GMP) – has been transferred to China
  • 31. COMPETITIVE ADVANTAGE Domestic Presence  Convenience for U.S. customers  Same time zone  No language barrier  Secure business practices  Troubleshooting handled locally Small company  Personal attention  Flexibility  Quick delivery time  Low overhead- pass lower costs to our clients
  • 32. COMPETITIVE ADVANTAGE Experience  Expertise in a wide range of chemistries  Experienced in manufacturing of hard to find molecules  Experienced technical team who recognize the challenges of transitioning from bench to pre-scale operations.  Reliable and Financially Stable  A track record of completed projects and satisfied customers
  • 40. CHEMPACIFIC CORPORATION Some call it the best of both worlds; we call it, The Best of One World. For more information please contact Chris McRandal, cmcrandal@chempacific.com, (412) 973-9716