Brasil Pharma : Material Fact- 18/06/2018

BRASIL PHARMA S.A. - IN JUDICIAL REORGANIZATION

Publicly-Held Company

Corporate Taxpayer ID CNPJ/MF no. 11.395.624/0001-71

Company Registry (NIRE) 35.300.374.797

MATERIAL FACT

BRASIL PHARMA S.A. - IN JUDICIAL REORGANIZATION, a corporation registered in Brazilian Securities Commission ("CVM") as a category A publicly-held corporation, with headquarters in the City of São Paulo, State of São Paulo, at Rua dos Pinheiros, No. 498, 9th floor, Pínheiros, Zip Code 05422-902, with their certificate of incorporation registered at Junta Comercial do Estado de São Paulo under the Company Registry (NIRE) 35.300.374.797, enrolled with the Corporate Taxpayer ID CNPJ/MF under the no. 11.395.624/0001-71 ("Company"), in accordance with the article 157, paragraph 4th, of the Law No. 6,404/1976, as amended and the CVM Instruction No. 358/2002, as amended, in continuity with the Material Facts previously disclosed by the Company in the ambit of its financial and corporate reorganization, hereby informs its shareholders and the market in general the following.

The Board of Directors of the Company, at the meeting held today, deliberated the suspension of retail activities in the remaining units of the Company's own operation.

The Board's decisions is in line with the Company's Judicial Reorganization Plan presented, on April 9th, 2018, before the 2nd Section for Bankruptcy and Court-Supervised Reorganizations of the Jurisdiction of the Capital of the State of Estado de São Paulo, and released in the Company's page in the CVM's website.

In addition, also in accordance with the operational perspectives provided in the Company's Judicial Reorganization Plan, the Company highlights that will remain focused in the operation of its franchise network, with a view to enable the resumption of Company's growth after the reconciliation of its liabilities in the ambit of the judicial reorganization.

The Company reiterates its commitment to keep shareholders and the market in general informed about the progress of the matters discussed here and of any other matter of market interest.

São Paulo, June 18, 2018.

Leonardo Leirinha Souza Campos

Investors Relations Officer