ShangPharma (SHP), $90mm IPO with a market cap of $289mm At the IPO price range mid-point of $15.5 Scheduled for Tuesday, Oct 19, 2010

SUMMARY

Biopharma outsourcing in China

. On a P/E baisis is priced on par with the larger one-on-one competitor WuXi Pharma (WX)

. On price-to-book value SHP is priced at a 25%+ discount to WX

. SHA may be able to grow at a faster rate from a smaller basis than WX.

Compare & Contrast	IPO Mrkt	Price /	Price /	Price /	Price /
annualizing June 6 mos	Cap (mm)	Sales	Earnings	BookValue	TangibleBV
ShangPharma (SHP)	$289	3.4	21	2.8	2.8
WuXi PharmaTech (WX)	$1,180	3.7	20	3.7	4.2

Each ADS represents 18 ordinary shares

BUSINESS

. A leading China-based pharmaceutical and biotechnology research and development, or R&D, outsourcing company. . Provides a broad range of high-quality, integrated services across the drug discovery and development process to international and Chinese pharmaceutical and biotechnology companies. Our services consist of discovery chemistry, discovery biology and preclinical development, pharmaceutical development and biologics services.

CUSTOMERS

. Provides services to over 100 customers, including all of the top ten pharmaceutical and biotechnology companies in the world in terms of 2009 revenues ranked by Frost & Sullivan and a number of fast-growing biotechnology and specialty pharmaceutical companies, as well as renowned academic and research institutions in the U.S. and China. . Most customers return for additional and often larger projects, and all of the the ten customers in each of 2008 and 2009 remained customers in 2010.

COMPETITION

. Competes with WuXi PharmaTech across the breadth of the service offerings. . Also competes with industry participants in certain service areas, for example with Albany Molecular Research, Inc. in discovery chemistry and pharmaceutical development, and Cerep S.A. and Covance Inc. in discovery biology and preclinical development.

USE OF IPO PROCEEDS

$43mm from sale of 3.2mm ADSs. Shareholders intend to sell 2.6mm ADSs

• $15.0 million for the construction of a manufacturing facility and laboratory services building in Fengxian, Shanghai;

• $15.0 million for the purchase of equipment;

• $5.0 million for the expansion of service offerings;

• $5.0 million for working capital needs;

• balance for other general corporate purposes, including potential

ShangPharma	SHP, C+, 7					Post-IPO shares: 19mm
Pharma/bio outsourcing
Shanghai, China	2007	2008	2009	June 6mos'09	June 6mos'10	IPO Mkt
Revenue ($mm)	$35	$61	$72	$33	$42	Cap (mm)
Gross profit	34%	33%	33%	33%	35%	$289
Operating profit margin	21%	16%	14%	14%	15%	@$15.5
After tax income ($mm)	$8	$9	$10	$5	$7
After tax income % of rev	23%	15%	14%	15%	17%
Valuation Ratios	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
annualizing June 6 mos	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
ShangPharma (SHP)	$289	3.4	21	2.8	2.8	31%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	2	1	7
Compare & Contrast	IPO Mrkt	Price /	Price /	Price /	Price /
annualizing June 6 mos	Cap (mm)	Sales	Earnings	BookValue	TangibleBV
ShangPharma (SHP)	$289	3.4	21	2.8	2.8
WuXi PharmaTech (WX)	$1,180	3.7	20	2.2	2.2