China Medical System : Voluntary and Business Update Announcement Sign a License and Supply Agreement of Three Generic Products with Biocon Limited

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CHINA MEDICAL SYSTEM HOLDINGS LIMITED

康哲藥業控股有限公司*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 867)

Voluntary and Business Update Announcement

Sign a License and Supply Agreement of Three Generic Products

with Biocon Limited

China Medical System Holdings Limited (the "Company", together with its subsidiaries, the "Group") is pleased to announce that the Group through its wholly-owned subsidiary signed a License and Supply Agreement (the "Agreement") with a wholly-owned subsidiary of Biocon Limited for three generic products (the "Products"), dated 12 September 2019. According to the Agreement, the Group through its wholly-owned subsidiary will gain an exclusive license to register and commercialise the Products under the Biocon Limited's intellectual property in Greater China (including mainland China, Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan) (the "Territory"). The initial term of the Agreement shall be 10 years and may be extended for every fixed period of two years on a product-by-productbasis as per certain conditions defined in the Agreement or otherwise as per mutual agreement of the two parties.

According to IQVIA data, sales of the drugs with the same active pharmaceutical ingredients (API) of the Products in mainland China are about USD0.8 billion in 2018. This collaboration will further enrich and extend the Group's product portfolio upon occurrence of the perspective commercialisation of the Products in the Territory.

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• For identification purpose only

About Biocon Limited

Biocon Limited, publicly listed on Bombay Stock Exchange Limited and National Stock Exchange of India in 2004, is a fully-integrated,innovation-led global biopharmaceuticals company committed to enhance affordable access to complex therapies for chronic conditions like diabetes, cancer and autoimmune diseases. Biocon Limited has developed and commercialised a range of Biosimilars, Novel Biologics and differentiated Small Molecules in India and other global markets.

It is a leading global player for complex APIs with over 1,000 customers across 100 countries. It is building a niche generic formulations portfolio and has commercialised generic formulations under its own label in the US.

Biocon Limited is committed to developing innovative molecules to address unmet patient needs and has a promising novel assets pipeline in immuno-oncology.

For further information, please visit www.biocon.com& follow Biocon Limited on Twitter @bioconlimited.

By order of the Board

China Medical System Holdings Limited

Lam Kong

Chairman

Hong Kong, 12 September 2019

As at the date of the announcement, the directors of the Company comprise (i) Mr. Lam Kong, Mr. Chen Hongbing and Ms. Chen Yanling as executive directors; and (ii) Mr. Cheung Kam Shing, Terry, Mr. Wu Chi Keung and Mr. Leung Chong Shun as independent non-executive directors.

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