X0203 3 2010-04-30 0 0001393526 Kun Run Biotechnology, Inc. KURU.OB 0001491520 ORBIMED ASIA GP, LP 767 THIRD AVENUE 30TH FLOOR NEW YORK NY 10017 0 0 1 0 0001055951 ORBIMED ADVISORS LLC 767 THIRD AVENUE 30TH FLOOR NEW YORK NY 10017 0 0 1 0 0001491569 OrbiMed Advisors Ltd 767 THIRD AVENUE 30TH FLOOR NEW YORK NY 10017 0 0 1 0 0001055949 ISALY SAMUEL D 767 THIRD AVENUE 30TH FLOOR NEW YORK NY 10017 0 0 1 0 Series A Preferred Stock 5228758 I By Caduceus Asia Partners, L.P. Warrant to Purchase Series A Preferred Stock Common Stock 1568627 I By Caduceus Asia Partners, L.P. Under the terms of the Securities Purchase Agreement dated 4/17/10, Caduceus Asia Partners, L.P. purchased up to $8,000,000 of units of the Issuer at a purchase price of $1.53 per share. Each unit is comprised of (i) 1 share of Series A Preferred Stock and (ii) one warrant to purchase 0.30 of a share of Series A Preferred Stock. Shares are held by Caduceus Asia Partners, L.P. ("Caduceus"). OrbiMed Asia GP, LP ("OrbiMed Asia"), the general partner of Caduceus, OrbiMed Advisors LLC ("OrbiMed Advisors"), the ultimate beneficial owner of the shares, Samuel D. Isaly, Managing Partner of OrbiMed Advisors, and OrbiMed Advisors Limited, may be deemed to share voting and dispositive power over the shares held by Caduceus. Such persons and entities disclaim beneficial ownership of shares held by Caduceus except to the extent of any pecuniary interest therein. Warrant shares are exercisable only if the Issuer fails to achieve thresholds of net income before certain expenses in its audited income statement for the 2010 fiscal year. Expiration Date of the Warrant Agreement is the earlier of (i) April 15, 2016 or (ii) the date of the Company's achievement of the 2010 Net Income Milestone. Shares of Issuer's Series A Preferred Stock are currently convertible into shares of the Issuer's Common Stock on a 1:1 basis. Shares of Issuer's Series A Preferred Stock issuable upon exercise of the Warrant to purchase shares of Series A Preferred Stock are currently convertible into shares of the Issuer's Common Stock on a 1:1 basis. /s/ Samuel D. Isaly, Managing Partner, OrbiMed Asia, GP, LP 2010-05-10 /s/Samuel D. Isaly, Managing Partner, OrbiMed Advisors LLC ("GP") 2010-05-10 /s/ Samuel D. Isaly, Managing Partner, OrbiMed Advisors Limited 2010-05-10 /s/ Samuel D. Isaly 2010-05-10