CHEPLAPHARM places notes in a volume of €750m in challenging market environment

CHEPLAPHARM Arzneimittel GmbH (“CHEPLAPHARM”), a leading international platform for well-established branded medicines, announces the successful placement of senior secured notes with a total volume of €750m. The proceeds from the new bonds will be used to finance the acquisition of the worldwide[1] commercial rights for Zyprexa® from Eli Lilly and Company. CHEPLAPHARM had announced the landmark acquisition of the well-established and positioned portfolio of products for the treatment of schizophrenia and bipolar disorders over the weekend. With a purchase price significantly above €1bn, this is the largest transaction in CHEPLAPHARM's history.

"I am very pleased about this successful capital market transaction, which enables us to continue our dynamic and profitable growth path", says Dr. Kia Parssanedjad, CFO of CHEPLAPHARM. "The fact that we were able to successfully place the bonds even in the current challenging market environment is a testament to investors' confidence in the strength and resilience of our business model. At the same time, the diversity of our investor base has enabled us to make the best possible use of the positive dynamic between fixed- and floating-rate instruments. On behalf of the entire Management Board, I would like to once again expressly thank our existing as well as new investors for their support."

The new EUR notes mature in 2030, with €425m at 7.500% and €325m at 3-month EURIBOR plus 4.75% per annum. In addition, CHEPLAPHARM is financing the acquisition of the Zyprexa® portfolio from available cash on hand and a drawdown under its revolving credit facility.

Latham & Watkins acted as legal advisor to CHEPLAPHARM.

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_{^[1] Excluding South Korea.}

About CHEPLAPHARM

CHEPLAPHARM is a fast-growing pharmaceutical company, headquartered in Greifswald, Germany, offering branded and niche products worldwide. The family-owned company specializes in selected active substances and indications and focuses on an international buy-and-build strategy.

Please refer to www.cheplapharm.com for additional information.

Press office:

CHEPLAPHARM ǀ Ziegelhof 24 ǀ 17489 Greifswald ǀ presse(at)cheplapharm.com

These materials are not an offer for sale of securities. The offering is being made by means of an offering memorandum. This announcement does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security and shall not constitute an offer, solicitation or sale in the United States or in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful.

The Notes and the related guarantees have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold within the United States, or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state or local securities laws. Accordingly, the Notes and the related guarantees are being offered and sold (i) in the United States only to qualified institutional buyers in accordance with Rule 144A under the Securities Act and (ii) in “offshore transactions” to non-U.S. persons outside the United States in accordance with Regulation S under the Securities Act.

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The offer and sale of the Notes will be made pursuant to an exception under the Prospectus Regulation from the requirement to produce a prospectus for offers of securities. This press release does not constitute a prospectus within the meaning of the Prospectus Regulation or an offer to the public.

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