【正文】 n Village County Town City IN BROAD MARKET, MOTILIUM IS LOSING OUT BIG TIME IN RETAIL PHARMACY CHANNEL … Retail pharmacy Hospital Clinic Source: Distributor interviews。 retail pharmacy interviews。 JINING … AND IN COUNTY GEOGRAPHY City County Town Village Source: Distributor interviews。 retail pharmacy interviews。 JINING Vaginal Infection Category Review FOR VAGINAL INFECTIONS, PATIENTS ARE MORE AWARE OF THE DISEASE AND GO TO HOSPITAL FOR TREATMENT Percent Less latent demand Almost all patients aware of the disease due to obvious symptoms and regular check up 80% of patients seek treatment Large hospital is important influencing channel Most patients seeking treatment will go to large hospitals Though half or more will purchase prescribed drugs in pharmacies Market player should focus on share gain Total incidence Do not seek treatment Go to large hospital Go to small clinic Self medicate at pharmacy Seek treatment Not aware 100~ 2 5~0~ 5 5~ 8 0~ 2 0~1 Source: Physician, pharmacy and clinic interviews Hospital is still number 1 channel to push Gyno Daktarin sales Pharmacy is being increasingly important 30% would use branded drugs, while 70% would use nonbranded drugs FOR GYNO DAKTARIN, HOSPITAL IS CRITICAL FOR PRESCRIPTION BUT PURCHASING HAS BEEN GRADUALLY SHIFTING TO RETAIL PHARMACY Anecdotes Quantitative examples SubTA sales by channel Percent Source: Hospital interviews。 McKinsey analysis ~5~0 ~ 1 0~ 3 0~ 4 5~ 2 0~ 4 5~ 6 5~ 8 01997 1999 2020 Retail Pharmacy Hospital Clinic “ Gyno patients will usually e to hospital for body check and go to pharmacies to refill drugs. For such kind of disease, people still trust large hospitals. However, more and more people purchase drugs in pharmacies” —— Liangshan hospital, Gyno physician interview “ I don’t have many gyno patients. This is because of 3 reasons. First, I am a man。 third, patients are usually familiar with me and they will feel awkword.” —— Zhangyongxin town level clinic interview Yantai ~ 1 0~5~0~ 6 0~ 4 0~ 2 0~ 3 0~ 5 581997 1999 2020 Retail Pharmacy Hospital Clinic Jining ESTIMATE IN ADDITION, GYNO DAKTARIN NEEDS TO GROW THE MARKET SHARE ESPECIALLY THOSE OF COUNTY AND TOWN Source: Distributor interviews。 retail pharmacy interviews。 JINING City County Town Village 26 50 20 42 47 12 24 43 32 41 46 13 3 59 38 9 43 27 4 0 0 0 0 22 Nail Fungal Infection Category Review FOR TINEA UNQUIUM DRUGS, DEMAND LATENCY IS EVEN HIGHER Percent Extremely latent demand with increasing awareness 90% of patients do not seek treatment Awareness and treatment rate is increasing slightly due to petitor39。 McKinsey analysis Only 1% actually buy drugs Low treatment rate is mainly due to affordability issue of the patients Sporanox’s potential market as a Tinea Unquium drug is small, and is unlikely to be a broadmarket hit Go to large hospital Go to clinic Go to pharmacy directly HOSPITAL CHANNEL IS STILL DOMINATING TINEA UNQUIUM DRUG MARKET WHILE PHARMACY CHANNEL IS PICKING UP Anecdotes Quantitative examples SubTA sales by channel Percent Source: Hospital pharmacy interviews。 McKinsey analysis ~0~0 ~130~ 5 0~ 1 0~ 5 0~ 7 0~ 9 01997 1999 2020 Retail Pharmacy Hospital Clinic “ We gradually carry some Tinea Unquium drugs in these years. Because more and more patients, although still quite small in amount, e here to ask for Liangjia after seeing its advertisement. I think most patients still go to hospital for treatment.” —— Jining Kangfu pharmacy “ I seldom see Tinea Unquium patients. And also, because the drugs are very expensive, I didn’t carry them. If there is really someone e to my clinic, I will suggest them to pharmacy.” —— Yantai clinic interview Yantai ~5~5~0~ 2 0~ 1 5~ 1 0~ 7 5~ 8 0~ 9 01997 1999 2020 Retail Pharmacy Hospital Clinic Jining 25444 * Others including around five drugs, such as Huihuangmeisu（ 灰黃霉素） , Lisulao（ 里素勞） ,Lianghuija（ 亮灰甲） etc. Source: Distributor interviews。 patient interviews。 LIANGJIA IS DOING BETTER THAN SPORANOX AT RETAIL PHARMACIES DUE TO HEAVY ADVERTISING 46241614Percent Others* Total = RMB million County Town City Sporanox Lanmeishu (蘭美抒 ) Liangjia (亮甲 ) Village 0 Source: Distributor interviews。 patient interviews。 LIANGJIA IS DOING BETTER THAN SPORANOX AT RETAIL PHARMACIES DUE TO HEAVY ADVERTISING City Total Retail pharmacy Hospital 33402573210398203111514%25%29%26%Clinic County Share of leading drugs within Tinea Unquium – Yantai amp。 McKinsey analysis Cost of sporanox as a STD drug RMB FOR SPORANOX, XJP SHOULD CONTINUE TO FOCUS ON HOSPITALS … Retail pharmacy Hospital Clinic Source: Distributor interviews。 retail pharmacy interviews。 JINING … AND AT CITY AND RICH COUNTIES County Town Village Source: Distributor interviews。 retail pharmacy interviews。 JINING Vertigo Drug Category Review THERE IS UNTAPPED DEMAND IN TWO OF THE THREE PRODUCTRELATED TAs GI disfunction patient flow in broad market percent Source: Hospital amp。 McKinsey analysis VI patient flow in broad market percent Vertigo patient flow in broad market Percent Total incidence 100 ~30 30~40 20~40 Not a