Clarification on the news article by Up Media and other media groups

OBI Pharma Granted FDA Orphan Drug Designation for OBI-888 for the Treatment of Pancreatic Cancer
November 21, 2018
OBI Pharma Inc. to attend the 2018 Asia Pacific Healthcare Forum, hosted by Goldman Sachs
November 23, 2018
  1. Date of occurrence of the event: Nov 23, 2018
  2. Company name: OBI Pharma Inc./ AP Biosciences Inc.
  3. Relationship to the Company (please enter “head office” or “subsidiaries”): Head office/subsidiary
  4. Reciprocal shareholding ratios: N/A / 67%
  5. Name of mass media: Nov 22, 2018 news article by Up Media and other media groups
  6. Content reported: JHL Biotech Inc. involves in theft of trade secrets, US media: in addition to JHL, confidential trade secret on formulation has also been leaked to OBI Pharma…. There were four other companies that obtained the confidential formulation information by Genentech, including two Taiwanese companies: OBI Pharma Inc. and AP Biosciences Inc.
  7. Cause of occurrence: Clarification on news article
  8. Countermeasures:
    (1)OBI Pharma Inc. and AP Biosciences Inc. has not been listed as defendants in the lawsuit between Genentech and JHL. OBI Pharma Inc. and AP Biosciences Inc. have no involvement in the patent or business secret of the subject matter of biosimilar drugs.
    (2)OBI Pharma was mentioned in this because of a consultant contract with a former Genentech employee (one of the defendants in the case) who had left Genentech 18 years ago. The consulting contract was not fulfilled.
    (3)AP Biosciences was mentioned in this because, in 2015/2016, a former Genentech employee (one of the defendants in the case) was asked to inquire whether there was a potential cooperation opportunity with Genentech.
    (4)OBI and AP Biosciences are both biotech companies for new drug development; neither companies develop biosimilar drugs. Companies core values include respecting and protecting the intellectual properties, not only in relations to its own product patent and intellectual property, but also to others.
    (5)OBI and AP Biosciences have contacted Genentech’s appointed lawyer and expressed that they will fully assist with future proceedings and investigations as requested by Genentech.
  9. Any other matters that need to be specified: new drug development is a long process associated with high costs. It is not a guaranteed success, which may increase the risk of investment. Investors shall make prudent judgments and investments.