How can a renewed sense of optimism drive growth in the ......Dec 31, 2010 · Alchemia will be...

BioForum Edition 35

Quarter 3 FY11 June 2011

How can a renewed sense of optimism drive growth in the biotechnology industry?

What would you like to grow?

pwc.com.au/bioforum

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Q3 FY11• The life sciences index performed in-line with the

ASX All Ordinaries posting growth of 1.3 per cent.

• Biotechs went to market and raised $154m, which is more than 55 per cent on the last quarter.

• Major medical device stocks lost ground with 18 of the 38 companies contained in the index posting more than -10 per cent returns.

• There were two Australian IPO’s and in the US, four IPO’s entered the market.

Federal budget 2011-2012A PwC and Ausbiotech perspective on the Federal Budget 2011 and what it means for the life sciences industry.

A case for cautious optimismThe MoneyTree report gives an overview of venture capital investment in the US.

Interview with Peter Smith, CEO, AlchemiaPwC partner Craig Lawn, asks Alchemia’s CEO about its partnership with Dr Reddy’s, its drug development investment decisions and his view on the Australian biotechnology sector.

Every quarter, BioForum reports on the Australian and US pharmaceutical, biotechnology and medical devices markets and the broader life sciences industry. As well as reviewing the market’s performance, BioForum covers initial and secondary capital raisings, clinical milestones, partnerships and mergers and acquisitions.

Highlights

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Introduction

Craig Lawn PwC Private Clients

Manoj Santiago PwC Private Clients

pwc.com.au/privateclients

In the third quarterThe life sciences sector posted good performance in the third quarter of FY11. The Life Sciences Index performed in-line with the ASX All Ordinaries this quarter posting growth of 1.3 per cent. In comparison, the ASX All Ordinaries rose slightly by 1.7 percent over the three months to 31 March.

“The March quarter has once again reflected a confidence play for the sector with a sense that this trend will continue going forward,” said Craig Lawn, Life Sciences Partner, PwC.

“Anecdotally there are a greater number of biotechs getting closer to later clinical trials or major transactions which will create a momentum once announcements are made to the market.”

Craig says that the implementation of the R&D tax concession and cash rebate will be anticipated by the biotech industry, “Without this legislation many early stage loss making entities will find it difficult to raise funds. It is important that the industry continues to come together with a strong voice.”

“When looking at the future of the biotech industry it is important to assess the health of whole community and say that until all sections are in balance overall sustainability must be questioned. The industry may currently be experiencing a bit of a purple patch but the important issue is that early stage companies, with good management, must come through to take the science and make it a reality,” said Craig.

Sector performance in detailThe Biotech (ex-majors) Index grew by 23.6 per cent which was driven by Mesoblast’s growth whilst the Medical Devices (ex-majors) posted growth of 15.9 per cent due to the listing of REVA Medical – adding A$444 million to the index.

Major medical device stocks lost ground during the March quarter with over half of the companies contained in the index posting more than -10 per cent returns for the quarter.

The NASDAQ composite and NASDAQ Biotech rose 4.8 per cent and 7.3 per cent respectively, in contrast to the Australian result.

IPOs and secondary financingThere were two Australian IPOs during the three months to March 31 – REVA Medical and Bioniche Life Sciences.

“Capital raising in the March quarter was impressive as confidence appears to be settling back into both the IPO and secondary markets,” said Craig.

In the US, four IPOs entered the market with one in the biotech space totalling $76 million and three Medical Device companies with a total market cap of $100 million.

In this quarter, biotechs went to market and raised A$154 million via secondary raisings which is more than 55 per cent on the last quarter. Secondary raisings in the medical device sector fell 60 per cent from A$56 million in Q2FY11 to A$22 million in Q3FY11. Despite this, the number of times companies went to market was consistent with the prior quarter.

In the US, medical devices raised the majority of the secondary capital at $1.5 billion while the Biotech sector raised $31 million.

Feature articlesIn this issue, we interview Peter Smith, CEO, Alchemia. Peter shares how delays in drug approval by the US Food and Drug Administration (FDA) has impacted the company and the background behind their recent drug development investment decisions in Australia.

In ‘A case for cautious optimism’, we discuss the findings from the MoneyTree™ Report by PwC and the National Venture Capital Association (NVCA).

Finally, we provide some commentary from AusBiotech and PwC on the impact of the 2011-2012 Federal Budget on the Australian life sciences sector.

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Australian Industry Leaders – Life SciencesCraig LawnPhone: +617 3257 5672 Email: [email protected]

Manoj Santiago Phone: +612 8266 4494 Email: [email protected]

Michelle ChiangPhone: +612 8266 7575 Email: [email protected]

Sydney

Assurance

Manoj SantiagoPhone: +612 8266 4494 Email: [email protected]

Transactions

Kate Julius Phone: +612 8266 5835 Email: [email protected]

Tax

Craig McIlveenPhone: +612 8266 2261 Email: [email protected]

Corporate Finance

Dan Cotton Phone: +612 8266 3053 Email: [email protected]

Pharmaceutical Industry Leader

John CanningsPhone: +612 8266 6410 Email: [email protected]

Licensing and Forensic Accounting

Cassandra Michie Phone: +612 8266 2774 Email: [email protected]

R&D Tax

Sandra MasonPhone: +612 8266 0470 Email: [email protected]

Brisbane Melbourne

Craig LawnPhone: +617 3257 5672 Email: [email protected]

Andy BarlowPhone: +613 8603 4230Email: [email protected]

Troy MorganPhone: +617 3257 8934 Email: [email protected]

Sam Lobley Phone: +613 8603 3689 Email: [email protected]

Newcastle

Stephanie FabianPhone: +612 4925 1278 Email: [email protected]

PwC Australia Life Sciences and Innovation Practice contacts

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Contents

06Quarterly key findings

08Feature articles

20Market performance

30Announcements

44Appendix

48Methodology

50Acknowledgements

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Quarterlykeyfindings

01

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Market performance Q3 FY11 Page

Life sciences industry total MCap A$38,126m 21

Life sciences industry growth 1.3%

Pharma/biotech sector total MCap A$26,024m 23

Pharma/biotech subsector growth 3.2%

Medical device sector total MCap A$12,102m 23

Medical device subsector growth -2.6%

Individual company performance

Top individual performer Mesoblast Limited 28

Change in market cap over the past four quarters 255% 28

Bottom individual performer Bone Medical Limited 29

Change in market cap over the past four quarters -75% 29

Financing

Australian IPO count 2 24

Total raised (A$m) A$505m 24

US IPO count 4 24

Total raised A$176m 24

Australian secondary financing count 51 26

Total raised (A$m) A$176m 26

US secondary financing count 51 26

Total raised A$1,549m 26

Q3FY11 Page

Announcements – Australia

Total number of partnerships formed this quarter 27 31

Total number of mergers and acquisitions 5 33

Total announcements for clinical trials 35 34

Pre-clinical 6 34

Phase I 3 34

Phase II 12 34

Phase III 4 35

Total number of regulatory announcements 31 36

Other 83 38

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Feature articles

02

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We understand you have a manufacturing and marketing partnership with Dr. Reddy’s, a pharmaceutical company based in India. How did that come about?We first partnered with the US-based APP Pharmaceuticals. However, that agreement was terminated in 2006. There were a number of factors behind that. Firstly the sales of the branded drug, Arixtra (sold by GlaxoSmithKline), of which ours is a copy, were still quite low and several changes at APP had resulted in the loss of our champion in the company and changes in strategy.

Our selection process when looking for a new partner involved the development of a matrix for all players with a strong US sales focus, and a strong position in getting generic drugs approved in the US. Another key attribute was the size of our partner, given the long manufacturing cycle and working capital required for this generic drug. We wanted a partner with a large enough balance sheet to handle the costs, but not too large such that our product would not be seen as important. Dr Reddy’s was in our ‘sweet spot’ in this regard so we moved quickly through negotiations to establish mutual interest and reward.

We opted for a simple profit share model with Dr Reddy’s for the US and have recently added other world markets on a flexible royalty that can be adjusted to reflect an equitable split of profits. In the US, depending on certain conditions, we will receive a minimum of 50 per cent of operating profits and up to 60 per cent.

Indian withholding tax is taken from payments made to us from Dr Reddy’s and less so from payments made direct from the US. This withholding tax is a cash cost to us that can be managed through modelling. We know that effective structuring can be helpful to help control the impact.

The collaboration with Dr Reddy’s was strong from the beginning with full integration and knowledge sharing between teams. The personal fit is very important with good communication being required across all of the functions involved in the project. Also, there’s a good cultural fit, with cricket as a common ground – despite the results from the World Cup!

Could you tell us about drug development investment decisions made at Alchemia?Basically, we have two areas of focus: drug discovery and high value generic drugs. After fondaparinux our most advanced program is in the cancer space, with HA-Irinotecan just about to enter the last stage in clinical testing. The generic drug irinotecan is widely used in the treatment of colorectal, or bowel cancer. Using our HyACT platform we have doubled the effectiveness of the drug without increasing its toxicity. This could be a major product with sales of several hundred million dollars in colorectal cancer alone. We’ve shown that the same technology can be used to improve a large number of cancer drugs, so once the platform is proven I think we will be able to leverage the results and create a suite of high value products. Increasingly Alchemia will be seen as an oncology company as we prove our clinical development capabilities.

Our drug discovery technology VAST has taken a different strategic path. In early 2007, before the onset of the GFC, we made the conscious decision to reduce our cash burn in all areas, but with a focus on reduction in drug discovery technology as we realised how hard it was going to be to raise capital. This was a tough decision as our library of discovery compounds was nearly complete, but we listened to shareholders and pushed ahead. The team was dismantled and instead of developing the technology ourselves, we have done deals with third parties to further the development and validation of our drug discovery platform. We have collaborated on a number of occasions with large pharmaceutical companies in order to have them ‘validate’ the technology.

Now we are pursuing a ‘virtual model’ for this part of our business and do not plan to rebuild an ‘in-house’ drug discovery capability. It is a vexed situation for us as the drug discovery area has significant potential value but the uncertainty and cash burn at this stage is too hard to sustain ourselves. We will still pursue some avenues of drug discovery work, mainly through grant funding, as we have some very interesting results from internal programs. Our opioid program with Maree Smith is one such example which is looking to remove some of the known side effects of traditional opioid drugs. It’s still early days but we are making good progress.

Peter, what do you see as the greatest challenge for Alchemia over the short to medium term?In the short term we have been affected by extended delays in drug approvals. US Food and Drug Administration (FDA) generic drugs, such as our generic fondaparinux, which will compete in the heparin market. Our FDA pre-approval inspection was delayed by six months but in many ways we have been fortunate, with approximately 192 foreign FDA pre-approval inspections backed up which will take over three years to clear. This raises the issue of US versus foreign manufacturing and is something that we will take into consideration in the future. I suspect the delays are due to internal FDA issues but also as a result of new industry players straining limited resources. Practically, these delays make it difficult to keep shareholders appraised of progress as the FDA doesn’t want a running commentary on its activities and there are often long gaps between FDA responses.

Adding to our concerns is the fact that there is no obvious way to accelerate the process. Although Alchemia received priority review, there are still significant delays arising from the FDA acting as a ‘traffic cop’ to the wider community. The issue is difficult for our shareholders. While FDA approval will allow us to go to market almost immediately, the date for approval continues to be uncertain.

Peter Smith CEO, Alchemia

Craig Lawn Partner, PwC

Interview with Peter Smith, CEO, Alchemia

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I understand you have just appointed a new CFO at Alchemia, Charles Walker. What is Charles’s background and what does this mean for Alchemia?Charles has a lot of US deals and capital raising expertise specific to the life sciences industry. Early on, he trained as a pharmacologist before pursuing more corporate finance based roles, including employment at NASDAQ listed businesses and US hedge funds. He also co-founded a UK based life science investment bank, Code Securities Ltd, which was sold to Nomura in 2005. Our focus is on Australia and the ASX for now and we are not exploring listing on other capital markets in any detailed way. I don’t think we are large enough for the US yet. With a market cap of less than $500 million, I think it is hard to get focus and coverage in US markets. However, we spend time in the US and Europe making sure that funds, especially the healthcare specialists, know our story so that when they are able to invest we are already known to them and have established a track record. There is a lot of interest in the oncology part of our story and, in time, I think we will see more overseas institutions on our register.

Peter, what is your view of the general state of the Australian biotechnology sector, including any key issues or trends that you see emerging?I hear about lots of people from big pharmaceuticals in the US and Europe coming to Australia and looking to mirror what has been done offshore. However, I see the Australian market as very different and unique from those in the US and Europe. Generally, we (Australian companies) are not looking for blue sky opportunities like many of our US/Europe counterparts, rather we have pursued lower risk options with lower technical hurdles. For example, we are reformulating cancer drugs that we already know work. Acrux is improving the delivery of certain drugs using its spray-on patches, QRx is combining pain medications for improved effectiveness and the list goes on. We still face challenges in development but generally we’re not chasing new drugs against novel but unproven targets.

I think Australian emerging technology businesses need to continue to be aware of their environment and available people and resources and act in accordance with their competitive advantages. For example, if leveraging off existing drugs and improving them is the chosen strategy, pursue it aggressively!

Craig: I appreciate your time today Peter. There are exciting opportunities ahead for Alchemia, especially as you are so close to FDA approval for your heparin drug.

I think that there are a few big takeaways for me. Clearly, Australian life sciences businesses need to stay focused on their competitive advantages, and if marketing and manufacturing does not fit the overall company strategy, outsource as required. The GFC has tested the Australian biotechnology industry, but investor relations and sensible decision-making can still help get you to where you need to be. You have proven that maintaining international networks is important, especially to identifying the right employees and partners for your business.

Thank you for pointing out what you see as the differences between the Australian biotechnology industry and those in the US and Europe. Your fresh insight is helpful.

The GFC has tested the Australian biotechnology industry, but we see how investor relations and sensible decision-making can still help get you to where you need to be.

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A case for cautious optimism

US venture capital funding for the life sciences sector1, which includes biotechnology and medical devices, recovered in terms of dollar investments during the first quarter of 2011 with $1.4 billion going into 164 deals, according to findings from the MoneyTree™ Report by PricewaterhouseCoopers and the National Venture Capital Association (NVCA), based on data from Thomson Reuters. Quarterly venture investment for the sector grew 7 percent year over year and 16 percent from the previous quarter. However, deal volume declined by 8 percent compared to the same period last year as the sector logged the lowest number of deals in a single quarter since the first quarter of 2009.

The sector’s quarterly performance reflected that of other industries. For all sectors, 736 deals brought in $5.9 billion, representing a 14 percent rise in dollars but a 6 percent drop in number of deals from the first quarter of 2010. The number of deals for all industries fell to the lowest in a single quarter since the third quarter of 2009.

The life sciences sector’s 24 percent share of total venture capital dollars for the first quarter of 2011 slipped slightly from 25 percent for the same quarter of 2010 but markedly improved from 21 percent for the final quarter of last year.

Biotechnology ranked third behind software and industrial/energy in amount invested for the most recent quarter; medical devices ranked fourth. The combined performance of biotechnology and medical devices showed continued strength as compared to other industries.

Biotechnology investing grew by 5 percent in dollars but registered a steep decline of 21 percent in number of deals on a year-over-year basis, with $784 million going into 85 deals. Quarter over quarter, biotechnology investing gained 6 percent in dollars but declined 17 percent in number of deals.

1 The MoneyTree life sciences sector includes the biotechnology and medical device and equipment industries. Biotechnology is defined as “developers of technology promoting drug development, disease treatment, and a deeper understanding of living organisms; includes human, animal, and industrial biotechnology products and services. Also included are biosensors, biotechnology equipment, and pharmaceuticals.” Medical devices and equipment industries are defined as those that “manufacture and/or sell medical instruments and devices including medical diagnostic equipment (X-ray, CAT scan, MRI), medical therapeutic devices (drug delivery, surgical instruments, pacemakers, artificial organs), and other health-related products such as medical monitoring equipment, handicap aids, reading glasses, and contact lenses.”

Investor interest in medical devices heightened as dollar investment and number of deals increased by 9 percent and 11 percent, respectively, compared to the same quarter last year. For the first quarter, medical devices recorded $602 million going into 79 deals. The quarter-over-quarter performance also improved: dollar investments were up 34 percent; and number of deals, 1 percent.

“The first-quarter investment total sets us on a path for a solid level of investing in 2011. While we did see a drop in deal volume, the dollar investment remains strong,” noted Tracy T. Lefteroff, global managing partner of the venture capital practice at PwC.2

Figure 1: Life sciences funding compared with total venture funding

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2 Thomson Reuters and NVCA news release, “Venture Capital Investment Dollars Increase Modestly while Number of Deals Decline in Q1 2011,” April 15, 2011.

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Life sciences funding by quarterCompared with the first quarter of 2010, life sciences venture funding increased 7 percent during the first quarter of 2011 to $1.4 billion. On a quarter-over-quarter basis, investment increased by 16 percent after declining for two consecutive quarters.

The quarterly deal count represents the lowest number in a single quarter since the first quarter of 2009. However, the first quarter of 2011 marks only the fourth time in the last 15 years that the amount invested during the first quarter topped fourth-quarter investment.

“This first-quarter gain after a disappointing end to 2010, during which biotechnology lost its lead to technology, could portend higher performance for life sciences for the remainder of the year,” Lefteroff said. “Lengthy time to market and a difficult regulatory environment, however, still present challenges when comparing the investment attractiveness of life sciences to other sectors.”

Figure 2: Life sciences funding trends by quarter 2009–2011

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Life sciences deal volume by quarterThe number of life sciences deals continued to shrink for the third straight quarter with 164 deals recorded during the first quarter of 2011. The volume declined by 8 percent year over year and 9 percent from the previous quarter.

Compared with the first quarter of 2010, the number of early-stage deals fell 5 percent, and late-stage volume decreased 11 percent.

Figure 3: Life sciences deal volume by quarter 2009–2011

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Life sciences average deal size by quarterAverage deal size for the first quarter of 2011 reached $8.45 million, an increase of 16 percent compared to the same quarter last year. The biotechnology industry captured only one of the top 10 venture capital deals for the first quarter of 2011—a $72 million early-stage financing for a provider of biotechnology research services.

Compared with the first quarter of 2010, the average early-stage life sciences deal size decreased by 2 percent. In contrast, late-stage average deal size increased by 35 percent.

Figure 4: Life sciences average deal size by quarter 2009–2011

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Funding for biotechnology and medical devicesDuring the first quarter of 2011, biotechnology’s share of funding decreased to 57 percent from 62 percent in the previous quarter, while the medical device industry’s share increased to 43 percent.

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Figure 5: Life sciences investment split for the first quarter of 2011

Biotech

Medical devices57%

43%

Compared with the first quarter of 2010, the investment split remained unchanged.

During the first quarter of 2011, biotechnology funding increased 5 percent to $784 million from the same quarter of 2010. The number of deals decreased 21 percent to 85 deals, compared with 107 deals during the first quarter of 2010.

The medical device industry witnessed a 9 percent increase in funding during the first quarter of 2011 compared with the previous year. The number of deals increased 11 percent to 79 deals for the first quarter of 2011 compared with the same period in 2010.

Figure 6: Biotechnology and medical devices funding trends 2009–2011

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Biotechnology funding by subsegmentCompared with the first quarter of the previous year, biotech research, biotech industrial, biotech equipment, and biotech human funding increased by 158 percent, 89 percent, 7 percent, and 4 percent, respectively.

“It’s encouraging to see the 158% increase in funding going into biotech research,” Lefteroff observed. “That’s where patents get filed and innovative ideas hatched. The increase is an encouraging sign for the sector’s long-term health.”

Two biotechnology subsegments decreased during the first quarter of 2011 compared with the previous year, as follows:

• Biosensors, 46 percent

• Biotech pharmaceutical, 45 percent

Figure 7: Biotechnology funding by subsegment 2009–2011$

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Medical device funding by subsegmentFunding for two medical device subsegments increased during the first quarter of 2011 compared with the same quarter of 2010, as follows:

• Medical diagnostics, 9 percent

• Medical therapeutics, 30 percent

Funding for medical/health products, however, declined by 28 percent during the first quarter of 2011 compared with the same quarter of 2010.


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Figure 8: Medical devices and equipment funding by subsegment 2009–2011

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Life sciences funding by stageCompared with the same period a year ago, early-stage funding decreased during the first quarter of 2011 as late-stage investment increased. Early-stage funding fell 7 percent to $597 million, while late-stage funding increased 20 percent to $790 million.

“It’s not surprising that late-stage funding outperformed early-stage on a year-over-year basis,” Lefteroff said. “Life sciences companies require long-term support; they need and attract more capital as they ramp up in the later stages and move closer to exit opportunities.”

Looking at quarterly funding sequentially, however, we see that both early- and late-stage funding increased by 16 percent during the first quarter of 2011.

Compared with the previous year, early-stage deal volume decreased 5 percent to 90 deals during the first quarter of 2011, with a smaller average deal size of $6.6 million. Late-stage funding decreased as well by 11 percent to 74 deals, with an average deal size of $10.7 million.

Figure 9: Life sciences funding by stage 2009–2011

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Biotechnology funding by stageFor the biotechnology share of sector investment, early-stage funding declined by 4 percent from the first quarter of 2010 to $442 million, while late-stage funding increased by 19 percent over the same period to $342 million.

Compared to the fourth quarter of 2010, early-stage funding increased by 19 percent, while late-stage funding declined by 8 percent.

Figure 10: Biotechnology funding by stage 2009–2011

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Medical device funding by stageFor medical devices, early-stage funding dropped 16 percent to $155 million during the first quarter of 2011 compared with the previous year, while late-stage funding increased 21 percent to $447 million over the same period.

Compared with the previous quarter, both early- and late-stage funding increased 9 percent and 46 percent, respectively.

Figure 11: Medical device funding by stage 2009–2011

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First-time funding compared with follow-on fundingDuring the first quarter of 2011, $129 million of life sciences funding went to initial investments, a sharp decline of 46 percent year over year. Follow-on funding, on the other hand, increased 19 percent to $1.26 billion during the same period.

First-time deals in the life sciences sector averaged $3.7 millions during the first quarter of 2011—a decrease of 40 percent year over year. Average deal size for follow-on funding was $9.7 million—an increase of 28 percent year over year.

“First-time funding will remain challenging for the sector, with fewer deals and smaller deal size for fledgling companies,” Lefteroff observed. “Lengthy and costly R&D and uncertainty in the regulatory approval process continue to drive more investors toward follow-on and later-stage deals with companies that are closer to successful product launches or the exit market.”

Figure 12: Life sciences follow-on compared with initial investments 2009–2011

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Regional funding trendsSan Francisco Bay3, New York Metro, Boston, San Diego Metro, and the North Carolina Research Triangle received the most life sciences venture capital dollars during the first quarter of 2011. San Francisco Bay captured $381 million, with $248 million going into biotechnology and the remaining $133 million going into medical devices.

Figure 13: Top five metropolitan regions first quarter 2011

Biotechnology Medical devices

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3 San Francisco Bay area includes SF/Berkeley and San Jose.


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Figure 14: Life sciences funding trends in top five regions 2009–2011

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Venture capital outlook“Venture funding for the life sciences sector has already shown signs of improvement this year over a disappointing final quarter of 2010,” Lefteroff commented. “It was encouraging to see that the sector as a whole continued to attract a comparatively high level of funding even though it did not grow as much as some others—such as clean tech.”

Lefteroff noted that an uptick in M&A and IPO exits during the quarter generated some investor optimism for the sector. Six of 14 venture-backed IPOs for the quarter represented life sciences companies.

The sector captured 23 of the 109 M&A deals backed by venture capital during the quarter, with a value of $2.2 billion. The largest venture-backed M&A deal of the quarter at $800 million involved two medical device companies.4

“The interest in companies that create the right products to address unmet medical needs remains strong—especially in the device segment where development and commercialization move more quickly than in biotech,” Lefteroff noted.

4 Thomson Reuters and NVCA News Release, “Venture Capital Exit Market Stabilizes, Improves in Q1 2011; Best Annual Start for Venture-backed IPOs since 2007,” April 1, 2011.

The overall outlook for US venture capital funds also improved during the first quarter of 2011. Thirty-six US funds raised more than $7 billion, the strongest showing since the third quarter of 2008 and the best annual start for fundraising in the United States since 2001.5

“Venture funds will probably continue to be cautious about investing in life sciences as the economic recovery progresses,” Lefteroff said. “But their interest in the sector is long term. They recognize the great promise of an industry that is only beginning to embark on a new era of personalized medicine that will deliver more effective and targeted treatments to improve the health of millions of people in all regions of the world.”

About PwC’s Pharmaceutical and Life Sciences Industry Group PwC’s Pharmaceuticals and Life Sciences Industry Group (www.pwc.com/us/pharma and www.pwc.com/us/medtech) is dedicated to delivering effective solutions to the complex strategic, operational and financial challenges facing pharmaceutical, biotechnology and medical device companies. We provide industry-focused assurance, tax and advisory services to build public trust and enhance value for our clients and their stakeholders. More than 163,000 people in 151 countries across our network share their thinking, experience, and solutions to develop fresh perspectives and practical advice.

5 Thomson Reuters and NVCA News Release, “Venture Capital Industry Raises $7 Billion in Q1 2011,” April 11, 2011.

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What’s in the budget for biotechs?AusBiotech reports on the 2011-2012 Federal Budget

AusBiotech attended the budget lock-in at Treasury in Canberra in May as Wayne Swan delivered his fifth budget and reports on what’s in it for biotech: the good, the bad and the Tax Credit still on the agenda. Dr Anna Lavelle, CEO of AusBiotech said: “In a tough budget year the biotech sector has been spared and there has been no weakening of the Government’s resolve to introduce the much-needed tax credit reform. The forward estimates allowing for this are still in place.”

“Further, the anticipated $400 million cut to the Medical Research Council (NHMRC) funding has not eventuated thanks to a well coordinated campaign. Commercialisation Australia and the ARC Linkage grants have retained budget although CRCs have been impacted negatively,” she said.

Treasurer Swan announced a budget based on a second mining boom and $22 billion worth of cuts to make room for a raft of new initiatives and a return to surplus in 2012/13. Amongst the new initiatives, mental health was the big winner with $2.2 billion worth of programs to address long-awaited reform in the area. Included are research funds of $26.2 million that have been allocated for mental health research via the NHMRC over the next five years. This is to be funded by the Medical Research Endowment account with no net cost to the budget.

Other initiatives in the overall budget include $3 billion for training, more participation in a more productive workforce, $1.8 billion for regional facilities including healthcare, cost-of-living relief for low income earners, and support for recovery from recent natural disasters.

Treasurer Swan believes Australia is set to see a “seismic shift in global economic power” and is ideally positioned to be the beneficiary, especially from growth in India and China, which is already driving the mining boom. On the flip side, the high Australian dollar is making it hard for companies competing in international markets, such as biotechnology.

Australian science, research and innovation has an estimated $9.4 billion budgeted for in the 2011/12 financial year, including preservation of the NHMRC funding. The rumoured and feared funding cut for medical research did not eventuate, with grant funding slightly increasing 4.3 per cent from $715 million to $746 million. AusBiotech worked closely with Research Australia in this regard and is pleased with the result. Three programs have been transferred into the Council: the Dementia Initiative (CRC), National Institute of Clinical Studies and the Australasian Cochrane Centre Activities.

The Pharmaceutical Benefits Scheme (PBS) saw the latest listing announcements in February, and at the time also saw the Government defer listing of medicines that had been recommended by the PBAC “until fiscal circumstances permit”. The Budget papers state that this will remain the case and will be reconsidered when “appropriate to do so”. Meanwhile, changes to the “PBS with financial implications will be considered by Cabinet.”

In Minister Carr’s Industry, Innovation, Science and Research portfolio, the R&D Tax Credit is still on the agenda, two years after it was announced. The legislative Bills that are awaiting debate in the Senate have been provided for in the program expense budget statements, despite the lack of a deciding vote from Senator Fielding. The department has set aside $2.4 million to administer the program in the 2011/12 financial year and $10.4 million over the forward estimates period. Now the sector looks to the Greens and in particular Senator Milne to deliver this essential reform. AusBiotech expects the Tax Credit to be debated in the Senate this July and has early indications that Senator Milne is well briefed and supportive of additional support for small innovative business.

The Australian Business Foundation recently published a report by Dr Nicholas Gruen of Lateral Economics, The BERD in the hand: Supporting Business Investment in Research and Development. Dr Gruen’s paper focuses on proposals for reform of the tax treatment of business research and development currently before Federal Parliament and gives a deep analysis on these important changes, with commentary of the arguments behind the R&D legislation and its effectiveness, especially in fostering greater investment in R&D and innovation by smaller businesses.

The report recommended the Government’s proposed new R&D Tax Credit scheme replacing the current one should be passed into law and said the proposed changes to the existing R&D tax concession are soundly based in policy. “Further delay in passing them would not only delay the increases in R&D investment from small firms that could be expected from the changes, but could also retard investment in R&D by smaller firms, even if it were viable under the current regime.”

The rumoured and feared funding cut for medical research did not eventuate, with grant funding increasing 4.3 per ccent from $715 million to $746 million.

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Also in Minister Carr’s portfolio, the CSIRO will receive a “record” $3 billion in funding on top of annual work contracts worth approximately $100 million. The Australia China Science and Research Fund is to be established with $9 million over three years for bilateral research collaborations with China. Paving the way for more young people in science, the Inspiring Australia initiative received $21 million for three projects:

• promoting National Science Week;

• Prime Minster Prize and other awards to reward and recognise researchers;

• National hub for science and technology communications.

On the down-side, $20.7 million will be cut from the Collaborative Research Networks, $33.4 million over four years from the CRC program, $6 million over three years from Enterprise Connect ($101.3 million over four years will remain). And the Green Car Innovation Fund is to be cut by $434.2 million over the forward estimates period and $601 million in total.

In the Health and Ageing portfolio, $4.1 million over four years was budgeted to continue the pandemic response which includes treatments for swine flu, as well as $15 million over four years to maintain the HPV Vaccination Program Register and $138.7 million over four years to continue the bowel screening program. Pathology services saw a big loss with $550 million removed from the Path Funding Agreement over the life of the program, and the National Cord Blood Collection Service Network (AusCord) will lose $1.5 million.

In the Small Business portfolio the Entrepreneurs’ Tax Offset (ETO) will be replaced with tax reforms for 2.7 million small businesses with effect from the 2012-2013 income year. The Government says instead, small business will benefit from the small business tax reform package, including a new instant write-off for the first $5,000 of a motor vehicle, to commence from the 2012-2013 income year.

The Small Business Support Line will receive $7.1 million over four years to provide continued support, after the line received almost 30,000 calls in less than two years of operation.

Pathology services saw a big loss with $550 million removed from the Path Funding Agreement over the life of the program, and the National Cord Blood Collection Service Network (AusCord) will lose $1.5 million.

$550 million

removed

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Budget maintains the status quoPwC’s perspective on the 2011-2012 Federal Budget

In the months leading up to the announcement of the 2011-2012 Federal Budget, the Australian life sciences sector had been fearing impending cuts to research funding , and signs of further delay in the introduction of the new R&D regime. As outlined by Dr Anna Lavelle, the budget was largely uneventful for the life sciences companies directly, although the broader themes on which the budget was built may provide some opportunities of the sector. This article analyses the impact of the budget on the Australian life sciences sector and provides some insights from PwC on the future of the sector and the way forward.The budget has been built on the continuing growth of the Chinese economy and the resultant investment expenditure on related infrastructure. While commentators often refer to a multi-speed economy, overall GDP growth and low unemployment will continue to provide the broad based economic conditions that are envy of much of the developed world.

PwC Private Clients Partner Manoj Santiago believes there is an opportunity for the sector to leverage from the growth in China, and the wealth that will flow to Australia from the continued investment. “What are the life sciences doing to tap into China’s growth and utilise their innovation to develop new markets and opportunities?” PwC China Desk lists Biotech investments amongst the top 10 areas of interest for Chinese companies and individuals looking for offshore investment opportunities.

Although the sector would have liked to have seen more funding for research, science and innovation on the whole, the industry has come out of the latest budget in much the same position as it did in 2010-2011. The $400 million cut to the Medical Research Council (NHMRC) has been put on hold with the grant for funding increasing from $715 million to $746 million.

Changes to the Research and Development (R&D) Tax Credit scheme have not been ruled out, however following significant industry consultation and government lobbying, they were not included in the budget. Early stage companies would benefit if limits for spending on R&D are changed, PwC believes.

“The industry needs this to be a priority for the Government going forward,” said Manoj.

Due to fiscal pressure, the Government has delayed the listing of new drugs on the Pharmaceutical Benefits Scheme (PBS). This is disappointing for the sector as drugs which have proven health benefits have been delayed. The uncertainty of new drugs being added to the PBS may lead companies rethink their research and development plans.

Mental health research, prevention and medical treatment programs were given a $2.2 billion boost in the budget. What we may see is a flow on effect in the life science and biotechnology sectors, “This additional funding may encourage investment into the area of medicine looking at mental health, particularly from overseas investors,” Manoj said.

The overall result of the 2011-2012 Federal Budget is a research neutral one. Perhaps revealing a that the Government does not see a strong enough link between basic research and productivity gains for the economy as a whole. Manoj believes that the sector must continue to highlight the positive health outcomes it has it has enabled, and the productivity gains that flow from healthier Australia.

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Market performance

03

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Performance overview

0%

5%

-5%

10%

15%

20%

25%

31-Dec 07-Jan 14-Jan 21-Jan 28-Jan 04-Feb 11-Feb 18-Feb 25-Feb 04-Mar 11-Mar 18-Mar 25-Mar 31-Mar

ASX All Ordinaries NASDAQ Composite NASDAQ Biotech Life Sciences Life Sciences ex majors

Figure 1: Weekly performance over the quarter of the Australian life sciences compared to major indices

Figure 2: Two-year comparison of the Australian life sciences sector by market capitalisation compared to major indices

Graph 1: Quarterly movements of the Australian life sciences sector compared to major indicies

20.2%

1.7%

4.8%

7.3%

1.3%

0%

10%

5%

15%

20%

25%

ASX All Ordinaries(Index)

NASDAQ Composite (Index)

NASDAQ Biotech (Index)

Life Sciences(Market cap A$m)

Life Sciences ex majors (Market cap A$m)

Table 1: Quarterly movements of the Australian life sciences sector compared to major indices

Value

31-Dec-10 31-Mar-11 Change

ASX All Ordinaries (Index) 4,847 4,929 1.7%

NASDAQ Composite (Index) 2,653 2,781 4.8%

NASDAQ Biotech (Index) 970 1,041 7.3%

Life Sciences (market cap A$m) 37,655 38,126 1.3%

Life Sciences ex majors (market cap A$m) 8,005 9,618 20.2%

-10%

40%

90%

140%

190%

31-Mar-09 01-Jul-09 01-Oct-09 01-Jan-10 01-Apr-10 01-Jul-10 01-Oct-10 01-Jan-11 01-Apr-11

ASX All Ordinaries NASDAQ Composite NASDAQ Biotech Life Sciences Life Sciences ex majors

22 PwC

Performance overview (cont.)

Figure 3: Quarterly performance of the Australian life sciences sector and subsectors

Graph 2: Yearly performance of the Australian life sciences sector by market capitalisation compared to major indices

Table 2: Yearly performance of the Australian life sciences sector by market capitalisation compared to major indices

Value

31-Mar-10 31-Mar-11 % Change

ASX All Ordinaries (Index) 4,893 4,929 0.7%

NASDAQ Composite (Index) 2,398 2,781 16.0%

NASDAQ Biotech (Index) 745 1,041 39.6%

Life Sciences (market cap A$m) 37,199 38,126 2.5%

Life Sciences ex majors (market cap A$m) 6,701 9,618 43.5%

ASX All Ordinaries(Index)

NASDAQ Composite (Index)

NASDAQ Biotech (Index)

Life Sciences(Market cap A$m)

Life Sciences ex majors (Market cap A$m)

0.7%

16.0%

39.6%

2.5%

43.5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

-5%

-0%

5%

10%

15%

20%

25%

30%

Life Sciences Life Sciences ex majors Pharma/Biotech Pharma/Biotech ex CSL Med Device Med Device ex COH, RMD

31-Dec-10 07-Jan-11 14-Jan-11 21-Jan-11 28-Jan-11 04-Feb-11 11-Feb-11 18-Feb-11 25-Feb-11 04-Mar-11 11-Mar-11 18-Mar-11 25-Mar-11

23 PwC

Performance overview (cont.)

Figure 4: Two-year comparison of the Australian life sciences indices’ performance by market cap

Graph 3: Quarterly performance of the Australian life sciences sector and subsectors by market cap

Table 3: Quarterly summary of the Australian life sciences indices’ performance

MCap (A$m)% of total

value

Companies with share

price gains

Proportion of subsector

up


price losses


down


price flat


flat

Total number of

companies

Pharma/Biotech 26,024 68% 32 49% 29 45% 4 6% 65

Pharma/Biotech ex CSL 6,687 70% 32 50% 28 44% 4 6% 64

Med Device 12,102 32% 12 32% 23 62% 2 5% 37

Med Device ex COH, RMD 3,004 31% 11 31% 22 63% 2 6% 35

Life Sciences 38,126 100% 44 43% 52 51% 6 6% 102

Life Sciences ex majors 9,618 101% 43 43% 50 51% 6 6% 99

Life Sciences Life Sciences ex majors Pharma/Biotech Pharma/Biotech ex CSL Med Device Med Device ex COH, RMD

0% 20% 40% 60% 80%

100% 120% 140% 160% 180% 200% 220% 240%

31-Mar-09 01-Jul-09 01-Oct-09 01-Jan-10 01-Apr-10 01-Jul-10 01-Oct-10 01-Jan-11 01-Apr-11

Table 4: Quarterly performance of the Australian life sciences sectors

Market capitalisation (A$m)

31-Dec-10 31-Mar-11 % Change

Pharma/Biotech 25,228 26,024 3.2%

Pharma/Biotech ex CSL 5,412 6,687 23.6%

Med Device 12,427 12,102 -2.6%

Med Device ex COH, RMD 2,593 2,931 15.9%

Life Sciences 37,655 38,126 1.3%

Life Sciences ex majors 8,005 9,618 20.2%

-2.6% -5%

0%

5%

10%

15%

20%

25%

Pharma/Biotech Pharma/Biotech ex CSL Med Device Med Device ex COH, RMD Life Sciences Life Sciences ex majors

3.2%

23.6%

15.9%

1.3%

20.2%

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Table 8: Total of quarterly US IPO listings

Company Listing dateCapital

raised (A$m)

Sector

Fluidigm Corp 09/02/2011 76 Biotech

AcelRx Pharmaceuticals Inc 11/02/2011 41 Meddev

Kips Bay Medical Inc 10/02/2011 17 Meddev

Pacira Pharmaceuticals Inc 02/02/2011 43 Meddev

Total 176

Table 5: Number of quarterly Australian IPO listings

Biotech Med Devices ASX

Q3FY11 1 1 29

Q2FY11 0 0 50

Q1FY11 0 0 19

Q4FY10 0 0 16

Q3FY10 1 0 7

IPOfinancing

Figure 5: Quarterly comparison of IPOs in Australia

Quarterlyfinancing

Figure 6: Quarterly comparison of IPOs in the US

* Amount shown is total market cap addition to the Life Sciences Index from IPOs on first day of trading

BiotechMedical Devices

Capi

tal r

aise

d (A

$m)*

7 0 0 0

145 0

360

0

100

200

300

400

500

600

Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11

Med Device: $7m


Capi

tal r

aise

d (A

$m)*

0

100

200

300

400

500

600


372

-

156 76

32 7

353

100

Med Device: $7m

Table 7: Total of quarterly Australian IPO listings

Company Listing Date Capital Raised (A$m)

REVA Medical Inc 23/12/2010 360,365,533

Bioniche Life Sciences Inc 27/01/2011 145,435,000

Total

Table 6: Number of quarterly US IPO listings

Biotech Med Devices

Q3FY11 1 3

Q2FY11 3 4

Q1FY11 0 1

Q4FY10 0 1

Q3FY10 4 0

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Yearlyfinancing

Figure 7: Annual comparison of IPOs in Australia

Figure 8: Annual comparison of IPOs in the US

Capi

tal r

aise

d (A

$m)

FY07 FY08 FY09 FY10 FY11 - YTD


0

300

200

100

400

500

600

153

176

105

11824 7

360

145

Biotech: $7m

Capi

tal r

aise

d (A

$m)



0

3,000

2,000

1,000

4,000

5,000

6,000

4,277

588325

251

1,662

1,013

4612326

Medical Devices: $6m

Table 10: Number of IPO listings (US)

Biotech Med Devices

FY11 – YTD 4 8

FY10 7 2

FY09 0 1

FY08 8 8

FY07 42 12

Table 9: Number of IPO listings (AU)

Biotech Med Devices ASX

FY11 – YTD 1 1 98

FY10 1 0 53

FY09 1 0 24

FY08 4 3 79

FY07 6 7 245

26 PwC

Quarterlyfinancing

Yearlyfinancing


Med Device: $93mBiotech: $258m

236

438229

274

2,081

271

248 25893

71


Capi

tal r

aise

d (A

$m)

0

1,500

1,000

500

2,000

2,500

Figure 11: Annual comparison of secondary financing in Australia



Capi

tal r

aise

d (A

$m)

0

15,000

10,000

5,000

20,000

25,000

15,810

1,699

8,603 7193,330

2,400

5,9743,756182

5,542

Figure 12: Annual comparison of secondary financing in the US

Figure 9: Quarterly comparison of secondary financing in Australia


22 38

13

91

154

71 18

14

56

22

Capi

tal r

aise

d (A

$m)


20

0

40

60

80

100

120

140

160

180

200

Figure 10: Quarterly comparison of secondary financing in the US


Capi

tal r

aise

d (A

$m)


500

0

1,000

1,500

2,000

2,500

Med Device: $110mBiotech: $46m

835

185 46

105 31

406

228 110

2,128

1,518

Table 12: Number of secondary deals (US)

Biotech Med Devices

Q3FY11 8 43

Q2FY11 17 51

Q1FY11 2 9

Q4FY10 6 11

Q3FY10 47 13

Table 13: Number of Australian secondary raisings

Biotech Med Devices

FY11 – YTD 111 36

FY10 107 39

FY09 87 41

FY08 99 66

FY07 98 75

Table 14: Number of US secondary raisings

Biotech Med Devices

FY11 – YTD 27 103

FY10 122 57

FY09 48 24

FY08 80 29

FY07 258 59

Table 11: Number of secondary deals (AU)

BiotechAvg. amount

raised ($m)Med

DevicesAvg. amount

raised ($m)

Q3FY11 39 3.9 12 1.8

Q2FY11 41 2.2 13 4.3

Q1FY11 31 0.4 11 1.3

Q4FY10 26 1.5 6 3.0

Q3FY10 18 1.2 4 17.9

Secondaryfinancemarket

27 PwC

28 PwC

01MESOBLAST LIMITED (MSB)

Return: 255% Closing price: $7.25 MCap: A$2,023.25m

Mesoblast acquired Angioblast, increasing Mesoblast’s ownership to 100% while also broadening its product pipeline across a wide range of clinical indication areas. Mesoblast also entered into a strategic alliance to commercialise novel therapeutic products for degenerative neurologic and cardiovascular conditions.

02TISSUE THERAPIES LIMITED (TIS)

Return: 220% Closing price: $0.71 MCap: A$97.50m

Tissue Therapies was granted the third core patent in the VitroGro IP family in the United States and received a Deed of Letters Patent from the US Patent and Trademark Office.

03GENETIC TECHNOLOGIES LIMITED (GTG)


Genetic Technologies granted Qiagen non-exclusive rights to a number of GTG patents, including non-coding analysis, gene mapping and internal standards.

04MEDICAL AUSTRALIA LIMITED (MLA)


Medical Australia signed a three-year agreement with Terumo Medical Corporation of Japan to manufacture a broad range of Terumo’s products.

05MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED (MVP)


Medical Developments International announced that net profit after tax of $804,000 for the half ended 31 December 2010 was up 143% on the same period for 2009. Earnings per share increased 166.7% to $1,600 over the same period.

06PRIMA BIOMED LTD (PRR)


Prima BioMed announced that its subsidiary, Oncomab Pty Ltd, has entered into a licensing agreement with Bioceros. The licensing agreement paves the way for the further development of Oncomab’s technology to create a Cripto-1 mAB as an immunotherapy treatment for cancers.

07STARPHARMA HOLDINGS LIMITED (SPL)


Starpharma completed enrolment and all patient follow-up visits in its phase 2 study of VivaGel.

08PRANA BIOTECHNOLOGY LIMITED (PBT)


Prana announced new data demonstrating the ability of PBT2 to repair the damage in an Alzheimer’s affected brain thereby facilitating the restoration of cognition in Alzheimer’s disease. $15m in government funding was pledged to the Mental Health Research Institute (MHRI), Prana Biotechnology’s partner in Alzheimer’s research, to help further develop lead compound PBT2. The Phase II trial also received funding of US$700,000 over two years from Alzheimer’s Drug Discovery Foundation.

09HEARTWARE INTERNATIONAL, INC (HIN)

Return: 74% Closing price: $2.42 MCap: A$1,148.07m

Heartware International announced that it has achieved a primary endpoint with 92% success in a bridge-to-transplant clinical trial and a secondary endpoint of survival was 94% at six months with 91% projected survival at one-year. The ‘bridge-to-transplant’ study was chosen by the American Heart Association late-breaking clinical trial session.

10QRXPHARMA LIMITED (QRX)


QRPharma announced the successful completion of its share purchase plan (SPP) to existing shareholders. The SPP follows the company’s placement to institutional investors raising A$14m, bringing the total proceeds to A$19.8m. In addition, The company was awarded the 2010 North American Frost & Sullivan Award for New Product Innovation of the Year for its lead compound MoxDuo IR.

Top 10 Performers over past four quarters

MSB

TIS

GTG

MLA

MVP

PRR

SPL

PBT

HIN

QRX

0% 50% 100% 150% 200% 250% 300%

29 PwC

01TYRIAN DIAGNOSTICS (TDX)

Return: -60% Closing price: $0.01 MCap: A$6.01m

Tyrian Diagnostics announced that revenues from continuing operations decreased 50% to $656,000 during the half year ended 2010 when compared to the same period for 2009. This lead to an increase in losses from continuing activities of 3% to $2.185m.

02HEALTHLINX LIMITED (HTX)


HealthLinx reported that they have issued a number of options to Springtree Special Oppurtunities Fund in return for funding totalling up to $7.23m. Losses for the half year ended 30 December 2010 increased 45% to $1.083m from the corresponding period in 2009.

03SCIGEN LIMITED (SIE)


Sciegen released a report during the year announcing net operating cash flows deficient of $1.2m. This was offset by positive cash flow from asset sales and loans from the holding company to produce an increase of cash held of $982m at the time.

04PROBIOTEC LIMITED (PBP)


Probiotec announced that as at 31 December 2010 sales revenue was down 9.3% to $36.1m and EBIT was down 72% to 2.3m.

05GENERA BIOSYSTEMS LIMITED (GBI)


Genera Biosystems’s partner working for the last 8 months on an R&D project to develop a modified HPV test requested additional time before finalising a commercialization agreement for the test.

06VIRAX HOLDINGS LIMITED (VHL)


Virax Holdings announced that Roche has terminated its exclusive global development and commercialisation agreement with VHL covering TG4001 citing strategic reasons. Also, VIR201 did not meet its primary or secondary immunological endpoints, failing to elicit a statistically significant increases in immune responses relative to the control group.

07AVEXA LIMITED (AVX)


Avexa announced that Calzada sold its 17% shareholding In the company. They also announced that the losses for the half year ended 31 December 2010 have decreased by 71% to a loss of $2.64m.

08LIVING CELL TECHNOLOGIES LIMITED (LCT)


LCT executed a $5.75m funding agreement and completed a share placement with ASK. They also announced that the net loss attributable to members for the half year ended 31 December 2010 increased by 28% to a loss of $4.3m.

09ACUVAX LIMITED (ACU)


Acuvex announced that a further 360m shares worth $720,000 were placed to RM Corporate Finance under the shortfall facility from the recently completed rights issue. Further, Merck Sharp & Dohme made a successful bid for the HBI assets which was approved by the US Bankruptcy Courts.

10BONE MEDICAL LIMITED (BNE)


Bone Medical executed a convertible note funding agreement with La Jolla Cove Investors Inc for US$6m at an interest rate of 4.75% per annum payable monthly in cash or fully paid ordinary shares, with a maturity of 3 years.

Bottom 10Performers over past four quarters

HTX

SIE

PBP

GBI

VHL

AVX

LCT

ACU

BNE

-80% -70% -60% -50% -40% -30% -20% -10% 0%

TDX

30 PwC

Announcements

04

31 PwC

PartnershipsCompany Pharma/biotech partner Application Value (A$m) Comments

Biotechnology Total 18

Apollo Consolidated (AOP)

Aspire Minerals Extention of option agreement period

Not disclosed Apollo Consolidated has agreed with Aspire Minerals to extend the period of options agreements to acquire 100% of the issued shares in Aspire.

Ascent Pharmahealth (APH)

Strides Arcolab Funding agreement $0.40 cash per share

Ascent Pharmahealth and Strides Arcolab have entered into a scheme implementation agreement under which Linkace Investments, a company wholly owned by Strides, will acquire all Ascent shares via a scheme of arrangement, other than the Ascent shares Strides already owns and those owned by Futura Investments and I-Investments.

Benitec (BLT) Biomics Biotechnologies Drug development agreement

Not applicable Following successful stage I results, Benitec and Biomics Biotechnologies have agreed to proceed to the next stage which is designed to develop an RNAi therapeutic to the point of pre-clinical studies in vivo. The overall aim is to develop a novel and effective option for Hepatitis B.

BioProspect (BPO) Doward International Distribution deal Not disclosed BioProspect has given a major boost to the sales of the natural Regen therapeutic range by signing a distribution agreement with Doward International.

Calzada (CZD) Leading global device company

Extention of collaboration agreement

Not applicable Calzada’s subsidiary, PolyNovo Biomaterial’s feasibility study with a major medical device company has been extended by 12 months, during which time several animal studies will be undertaken to further prove both safety and efficacy of the device.

Genetic Technologies (GTG)

NSW Police Force Forensic DNA testing Not disclosed Genetic Technologies has extended its forensic DNA testing agreement with NSW Police by one year. This testing includes DNA analysis in relation to various tyes of crimes.

Living Cell Technologies (LCT)

Jiangsu Aosaikang Pharmaceutical

Agreement for share placement and research for clinical trials

A$1.72m LCT and Jiangsu Aosaikang Pharmaceutical have entered into a binding share placement agreement for the issue of 14,334,080 LCT shares at A$0.12 per share representing 5% of the equity in LCT. LCT will use the funds for its clinical trials.

Phosphagenics (POH) US private dermatology company

Drug development for psoriasis

Not disclosed Phosphagenics and a US private dermatology company have entered into a partnership to develop a drug for psoriasis. The collaborator has received US FDA approval for an Investigational New Drug application clearing the path to commence a phase 1 clinical study in the US on the high value drug.

Phosphagenics (POH) Mastitis Management Australia

Expansion in Australian and New Zealand market

Not disclosed The two companies have partnered to fast track a new technology, TPM, with wide application to the global dairy market.

Phylogica (PYC) XL-protein GmbH Drug development agreement

Not disclosed Phylogica announced an alliance with XL-protein GmbH, a German-based biotech company that specialises in extending the circulation half-life of biopharmaceuticals. Through this alliance, Phylogica gains access to a unique modification technology that strengthens its phylomer drug discovery platform.

Phylogica (PYC) Roche New drug development Not disclosed Phylogica has successfully completed the initial research objectives of its collaboration with Roche and the two companies are now discussing the expansion of their collaboration to include in vivo studies for identification of unique phylomer peptides that cross the blood-brain barrier.

Phylogica (PYC) Isogenica Technology collaboration Not applicable Phylogica and Isogenica have succeeded in a proof of concept project demonstrating compatibility of Isogenica’s proprietary CIS in-vitro display technology for peptide engineering and drug discovery with Phylogica’s phylomer drug discovery platform.

Phylogica (PYC) Researchers from the University of Cambridge

For discovery of disease-associated targets

Not disclosed Phylogica will spin-off its existing business model by forming a new company called Phenomica, which will partner with researchers from Cambridge to pursue a novel application of its phylomer peptides for discovery of disease-associated targets.

32 PwC

Company Pharma/biotech partner Application Value (A$m) Comments

Prima Biomed (PRR) European Medicines Agency

Scientific advice agreement

Not applicable Prima Biomed entered into an agreement with European Medicines Agency for strategy and design of the phase III clinical registration trial for the CVac immunotherapy therapeutic ovarian cancer vaccine.

Progen Pharmaceuticals (PGL)

Australian National University (ANU) and ANU Enterprise

Commercialisation of the new therapy

Not disclosed Progen and ANU entered into a diabetes collaboration framework deed as ANU researchers have developed intellectual property for a new therapeutic approach for the treatment of type 1 diabetes with potential application in type 2 diabetes.

Stirling Products (STI) 3M To represent 3M’s Nexcare’s products

Not disclosed Stirling Products’s healthcare division has won a 2 plus 2 year contract to represent 3M’s Nexcare range of first aid, wound care and sports management product range as well as the Futuro product range in Australian pharmacies nationally.

Virax Holdings (VHL) Transgene To develop a skin cancer treatment product

Not disclosed Virax Holdings and Transgene have signed a worldwide exclusive licence agreement for Virax to develop Transgene’s TG1042, a clinical-stage skin cancer immunotherapy product.

Virax Holdings (VHL) Roche Development agreement Not applicable Virax Holdings announced that Roche has terminated its exclusive global development and commercialisation agreement with VHL covering TG4001, citing strategic reasons.

Medical Devices Total 9

Advanced Surgical Design and Manufacture (AMT)

Ortho Group Access to knee replacement product of AMT

Not disclosed Under the arrangement, Ortho Group surgeons will have improved access to a range of world-class prostheses manufactured and distributed by ASDM.

AtCor Medical (ACG) International pharmaceutical company

Supply and distribution agreement

US$0.6m AtCor Medical has signed a new agreement to supply SphygmoCor systems and clinical trial support services to a major international pharmaceutical company.

Austofix Group (AYX) Ortho Group Marketing arrangement Not disclosed A commercial arrangement was created between the two companies that will allow Austofix to work with, and market its products to, some of the country’s leading orthopaedic surgeons.

CogState (CGS) Eastbay To raise awareness of the risks of concussion

Not disclosed CogState’s U.S based JV, Axon Sports, has partnered with Eastbay to increase awareness of sports-related concussions and the role of baseline cognitive testing as part of an athlete’s overall pre-season preparation.

Ellex Medical Lasers (ELX)

STAAR Surgical Marketing and distribution agreement

Not disclosed Ellex has signed an exclusive distribution agreement with US-based Staar to market and distribute the Staar portfolio of cataract and refractive lens implants in Australia.

KarmelSonix (KSX) Children’s Hospital Physician Group

Service agreement Not disclosed This new agreement allows the hospital group to begin using the company’s WHolter testing service to verify symptoms, and the patient’s response to treatment, in the home environment as well as during daily activities.

KarmelSonix (KSX) Healthy Sleep Solutions International

Service agreement Not disclosed KarmelSonix has launced a JV with HSS to leverage KSX’s proprietary WHolter medical device capabilities, and the world class patient disease management, established physician networks and systems, and patient scoring of HSS.

Medical Australia (MLA) Pharmatel Fresenius Kabi Manufacturing partnership

Not disclosed Medical Australia signed a manufacturing partnership with leading global healthcare company Pharmatel Fresenius Kabi, which has a strong presence in Europe, Latin America, the United States and the Asia-Pacific region.

Medical Australia (MLA) Haemonetics Agreement to distribute blood bag sealers

Not disclosed MLA has signed a agreement with Haemontics to initially distribute blood bag Sealers. Its business development team will be attending training seminars in Singapore to up-skill on Haemonetics’ product range. This is a precursor to securing additional products for distribution.

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Mergers, acquisitions and divestmentsDominant company Target company Type of deal Value (A$m) Comments


BioProspect (BPO) Frontier Gasfields Acquisition Suscribing to $1m shares

BioProspect announced its diversification into the energy industry, by taking a 25% stake in privately owned Australian oil and gas explorer Frontier Gasfields.


bioMD (BOD) Allied Medical Acquisition 428,275,968 BOD shares

BioMD has proposed to acquire all the shares in Allied Medical thus creating a diversified healthcare group focused on a growing distribution business and the commercialisation of new medical technologies. The offer is recommended by Allied’s board and is subject to shareholder approval.

Eastland Medical Systems (EMS)

Westcoast Surgical and Medical Supplies

Divestment Not applicable Following a detailed review of the operations and business plans for Eastland Medical (WA) Pty Ltd trading as Westcoast Surgical and Medical Supplies (WSMS), the board has decided not to dispose of the business, and steps have been taken to reposition and expand the business.

Medical Corporation Australasia (MOD)

Amphion International Acquisition and capital raising

Not disclosed Medical Corporation Australasia has completed the acquisition of Amphion International and a $2.8m capital raising through share placement.


GMR Copper Project Acquisition $4.5m cash, 45m MOD shares at 20c and 45m umlisted MOD options exercisable at 20c

Agreement to acquire highly prospective GMR Copper project located in the Kalahari copper belt in north wertern Bostwana. The proposed transaction provides corporate, strategic and financial benefits to MOD and its shareholders.

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Clinical trialsCompany Drug Application Comments

Pre-clinical Total 6

Antisense Therapeutics (ANP) ATL1103 Sight disorder and cancer The company is making final preparations for the first human trial of ATL1103, a drug that is designed to block growth hormone receptor expression.

Phylogica (PYC) PYCAG5 Traumatic brain injury Phylogica has successfully demonstrated pre-clinical proof of concept with a phylomer peptide drug candidate for the treatment of traumatic brain injury.

Prana Biotechnology (PBT) PBT434 Alzheimer’s and Parkinson’s diseases

The company presented new data on PBT434, the company’s lead compound in pre-clinical development for Parkinson’s disease in March at the 10th International Conference on Alzheimer’s and Parkinson’s Diseases in Barcelona.

Progen Pharmaceuticals (PGL) PG545 PG545 inhibitor

Cancer The company announced its pre-clinical experiment data which shows its new dual angiogenesis and heparanase Inhibitor inhibits tumour growth and metastasis in several different mouse models of cancer and thus supporting its emergence as a new clinical candidate for cancer therapy.

Viralytics (VLA) Cavatak in combination with chemotherapy

Breast cancer Viralytics has announced positive results from itspre-clinical research data on the anti-cancer activity of itslead oncolytic virus candidate, Cavatak (CoxsackievirusA21) in combination with chemotherapy on human breastcancers both in vitro and in vivo.

Virax Holdings (VHL) TG1042 Skin cancer Using the exclusive global licence from Transgene to further develop TG1042, Virax is planning to start clinical trials upon receipt of the TGA approval.

Phase I Total 3

Benitec (BLT) RNA interference technology HIV/Aids City of Hope research hospital in Duarte, California is planning to optimise the treatment by modifying a range of clinical parameters and is thus undertaking a small second study using Benitec’s DNA-directed RNA interference (ddRNAi) technology in lymphoma patients carrying the HIV virus.

Bionomics (BNO) BNC210 Anxiety and depression Bionomics has successfully concluded two phase Ib clinical trials of BNC210 which is being developed as a new generation treatment for anxiety and depression with positive results.

Biotron (BIT) BIT225 Hepatitis B Biotron announced completion of stage one of a landmark human trial of its lead Hepatitis C drug candidate, BIT225 and the second half of the trial is now under way.

Phase II Total 12

BioMD (BOD) Fatigue testing calcification model

Tissue heart valve BioMD has signed a material transfer agreement toallow the continuation of the tissue heart valve feasibility study commenced last year. This will build upon the successful completion of the first phase studies.

CBio (CBZ) XToll Lupus erythematosus The company has successfully completed the clinical development program of its lead drug, XToll. The final study report is due for completion later in 2011. Also CBio has filed a patent cooperation treaty application and a corresponding patent application in Taiwan.

Clinuvel Pharmaceuticals (CUV)

Scenesse Skin disesse due to light exposure

Clinuvel Pharmaceuticals has completed its first phase II US study and analysis of the study outcomes is under way.


Scenesse In patients with vitiligo A new treatment for one of the world’s most distressing skin disorders is about to commence trials across the USA and Europe. The USA’s FDA has agreed to allow a pilot phase II trial of the new drug Scenesse.

Living Cell Technologies (LCT) Diabecel Diabetes Two leading charitable foundations made a joint contribution to provide US $280,000 funding to support LCT’s diabetes program.

Mesoblast (MSB) Revascor Heart failure Interim results from Mesoblast’s phase II heart failure trial show the proprietary adult stem cell product Revascor reduces cardiac events, mortality and hospitalisation.

Novogen (NRT) Phenoxodiol Ovarian cancer Novogen’s subsidiary Marshall Edwards announced the results of its phase II clinical trial of intravenous phenoxodiol in combination with cisplatin suggesting that phenoxodiol is active when administered intravenously in combination with platinum-based chemotherapy for ovarian cancer.

Prana Biotechnology (PBT) PBT2 Alzheimer’s disease The company announced new data shows PBT2 repairs the damage in an Alzheimer’s affected brain thereby facilitating the restoration of cognition in Alzheimer’s disease.

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Company Drug Application Comments

Prana Biotechnology (PBT) PBT2 Alzheimer’s disease Prana’s PBT2 phase II trial receives funding of US$700,000 over two years from Alzheimer’s Drug Discovery Foundation.

Prima BioMed (PRR) CVac immunotherapy Ovarian cancer Prima BioMed has completed the safety review of the first CVac Phase IIb trial patient group. No safety data concerns were expressed by the data safety monitoring board.

Starpharma Holdings (SPL) VivaGel Bacterial vaginosis Starpharma announced that it has completed enrolment and all patient follow-up visits in its phase 2 study of VivaGel.

Virax Holdings (VHL) VIR201 HIV The company announced that it has completed its HIV therapeutic vaccine trial in South Africa and has received $A576,600 from a public benefit organisation to fund trials.

Phase III Total 4

Biota Holdings (BTA) Intravenous (IV) zanamivir Influenza The company has received notification from GlaxoSmithKline (GSK) that it has commenced a pivotal phase III study of hospitalised patients with influenza.


ArTiMist malaria project Children’s malaria The world’s leading pharmaceutical intelligence groups, Thomson Reuters, has listed Eastland’s lead project ArTiMist as being one of the 5 most promising drugs to enter into Phase III trials.

pSivida (PVA) Iluvien Diabetic macular oedema

The company released positive results from the 36 month readout of completed phase 3 study in patients with diabetic macular oedema.

QRxPharma (QRX) MoxDuo IR Nausea, vomiting and dizziness

QRxPharma announced a phase 3 trial to compare the tolerability and safety profile of MoxDuo IR to equi-analgesic doses of either morphine or oxycodone given alone.

Other Total 10

Brain Resource (BRC) iSPOT ADHD ADHD Brain Test Brain Resource’s iSPOT-ADHD study has completed its150th clinical subject acquisition. This extends the company’s current insights compiled from over 500 other ADHD clinical subjects held in the Brain Resource International Database.

Calzada (CZD) AOD9604 Stem cell treatment Calzada’s subsidiary, Metabolic Pharmaceuticals has announced positive results of AOD9604 in a human stem cell assay for bone growth.

Calzada (CZD) Bioresorbable Temporizing Matrix (BTM)

Burns Calzada announced successful completion of the animal study comparing the NovoSkin BTM with a current leading dermal replacement product and found the results to be very encouraging.


ArTiMist malaria project Malaria The company announced that a confirmatory study in Rwanda is progressing well and preliminary results (raw data) continue to be positive. The project is expected to be completed on time.

HealthLinx (HTX) OvPlex Ovarian cancer HealthLinx reported that further analysis of a larger biomarker trial confirms the superior overall accuracy of its OvPlex ovarian cancer diagnostic demonstrating an unprecedented 93.5 % diagnostic efficiency.

Immuron (IMC) anti-HIV antibodies HIV The company’s latest laboratory results show that its antibody preparations have powerful and broad neutralising efficacy against many clades (strains) of HIV.

Immuron (IMC) Influenza candidate Influenza Results of preliminary experiments indicate that Immuron’s influenza candidate is effective in ferrets. These findings are highly encouraging and indicate the need for further experiments to support these results and extend them to more prevalent strains of influenza virus.

Novogen (NRT) NV-128 Ovarian cancer Novogen’s subsidiary, Marshall Edwards reported new data from a mitochondrial inhibitor program at the American Association of cancer research annual meeting.

Patrys (PAB) PAT-SM6 Cancer Patrys announced that there is a growing support in the international biotechnology community for PAT-SM6’s targeting of GRP78 on the surface of cancer cells as a potential break-through treatment.

Stirling Products (STI) TeleMedCare trial Remote health assessment? Stirling Products announced that the UK based Burchester Healthcare Group reported that the company’s TeleMedCare trial has proved very successful at its Woodside House Care Home in Norfolk, UK.

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RegulatoryCompany Product/issue Application Comments


Acrux (ACR) Animal health product N/A The US FDA’s Center for Veterinary Medicine has determined in its review that one technical section of the marketing application, submitted by Acrux’s licensee Elanco, is incomplete. Elanco is currently in dialogue with CVM to agree the requirements for the completion of this section.

Agenix (AGX) Patent approval N/A Agenix has been granted a European patent for humanised antibodies derived from DD-3B6/22.

Avexa (AVX) Apricitabine N/A The US FDA, after its meeting with Avexa, has cleared the remaining regulatory pathway to final approval for the company’s key anti-HIV drug Apricitabine.

Benitec (BLT) Petent update N/A A Graham ‘099 patent re-examination certificate was issued in the US and another Graham patent granted in a further European country.

Bionomics (BNO) Patent applications N/A Bionomics has filed two patent applications covering compounds to treat memory loss.

BioProspect (BPO) Gi-guard paste N/A The Australian Pesticides and Veterinary Medicines Authority accepted an application to register the Gi-guard oral paste for horses.

CBio (CBZ) Xtoll N/A Japanese patent office intends to grant the the “Chaperonin 10 Immunosuppression” patent to the company’s lead product, XToll.

ChemGenex Pharmaceuticals (CXS)

Omacetaxine N/A ChemGenex Pharmaceuticals has informed the European Medicines Agency (EMA) that it wishes to withdraw its current marketing authorisation application for CML patients who have failed imatinib therapy and who have the T315I mutation. Conversely ChemGenex has informed the EMA that it intends to submit a new MAA for CML patients who have failed therapy with two or more tyrosine kinase inhibitors.

Genetic Technologies (GTG) Settlement agreement N/A Genetic Technologies has settled a dispute with Sunrise Medical Laboratories in relation to a patent infringement law suit filed by Genetic Technologies in the US District Court.

Genetic Technologies (GTG) Patent infringement suit N/A Genetic Technologies has filed a second suit in the USA in relation to infringement of GTG’s non-coding patents. The counterparties to this new action are companies associated with Sonic Healthcare Limited.

HealthLinx (HTX) OvPlex N/A The company’s OvPlex ovarian cancer diagnostic has been granted a patent by the UK patent office.

Holista CollTech (HCT) Application for patent approval N/A The company has filed a provisional patent for a breakthrough process which will enable the global food industry to produce healthier, low sodium products that do not compromise taste and consumer acceptance.

Immuron (IMC) Imm-25 N/A Immuron has been granted the Australian patent for its influenza preventative product candidate (Imm-255).

Living CellTechnologies (LCT)

Immupel N/A LCT has been granted an Australian patent for Immupel, which is LCT’s industry-leading technology for encapsulating living cells prior to transplantation.

Pharmaxis (PXS) Bronchitol N/A The company has got TGA approval for marketing of Bronchitol in Australia.

Progen Pharmaceuticals (PGL) PG500 compounds N/A The company has been granted a US patent entitled “Sulfated Oligosaccharide Derivatives” that protects Progen’s PG500 series of small molecule compounds.

QRxPharma (QRX) Pre-NDA meeting N/A QRxPharma has been granted a pre-new drug application meeting with US FDA and it has also completed its third pivotal phase 3 registration trial for immediate-release MoxDuo.

Stirling Products (STI) Application for marketing approval

N/A The company has filed Premarket Notification 510(k) with the US FDA seeking approval to market the TeleMedCare Remote Monitoring Devices in the US.

Viralytics (VLA) Cavatak N/A Viralytics has received Chinese notice to grant a patent involving of the use of Cavatak RNA as an anti-cancer agent in human melanoma.

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Company Product/issue Application Comments

Viralytics (VLA) Evatak N/A Viralytics has received a notice from Chinese authorities to grant a patent involving of the use of Echovirus Type 1 (Evatak) as an anti-cancer agent in human ovarian cancer.


Anteo Diagnostics (ADO) Mix&Go IP N/A The European patent office granted a patent to protect the intellectual property that led to the discovery of the Mix&Go technology. The patent will have a 12 year life.

CathRx (CXD) Ablation catheter N/A The company has received CE marking for its first generation irrigated ablation catheter coupled with the variable deflectable stylet.

Cyclopharm (CYC) Technegas N/A The company has FDA clearance for its phase 3 clinical trial development program for Technegas in patients with suspected pulmonary embolism.

Genera Biosystems (GBI) PapType HPV test N/A Genera has been granted a important patent in the US relating to its PapType HPV test.

HeartWare International (HIN) HeartWare Ventricular Assist system

N/A HeartWare has US FDA approval to enroll a third allotment, of 94 additional patients, in its bridge-to transplant clinical trial.

HeartWare International (HIN) HeartWare Ventricular Assist system

N/A The Therapeutic Goods Administration (TGA) in Australia has approved the HeartWare Ventricular Assist System for listing on the Australian Register of Therapeutic Goods (ARTG).

ImpediMed (IPD) L-Dex U400 device N/A The Australasian Lymphology Association has recognised bioimpedance spectroscopy (BIS) and its role in aiding in the early detection of lymphoedema. This is relevant to the company in the sense that ImpediMed’s L-Dex U400 device is also built on a BIS platform.

Medigard (MGZ) Blood Collection Device (BCD) N/A The company’s patent application in Japan for its Blood Collection Device has now been approved. This provides Medigard with exclusive patent protection in Japan until 21 January, 2025.

MediVac (MDV) Disinfectant wipes N/A MediVac’s subsidiary, Sunny Wipes Pty Ltd has secured Therapeutic Goods Administration (TGA) registration for its general Virucidal and Antimicrobial hospital grade disinfectant wipes.

Nanosonics (NAN) Trophon EPR N/A The company has received FDA 510k clearance to market the Trophon EPR and its newly developed Chemical Indicator accessory the US.

Universal Biosensors (UBI) OneTouch Verio N/A The FDA has cleared the OneTouch Verio product, as sold in Australia, for sale in the US.

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Other newsCompany Product Application Comments


Acrux (ACR) Axiron N/A Acrux’s partner Eli Lilly and Company has launched Axiron (testosterone) topical solution in the United States.

Acuvax (ACU) Receipt of notice u/s 249D

N/A

The company has received a notice under section 249D of the Corporations Act 2001 which seeks to call a general meeting of the Company to remove Mr Keong Chan as a director of the Company, and seek the election of Mr Rocco Tassone as a Director of the Company.

Acuvax (ACU) Director resignation N/A Dr William Ardrey has resigned as director of the company with effect from 8 February 2011.

Agenix (AGX) Transfer of share registry, Change of registered office

N/A The company has shifted its register from Computershare Investor Services to Advanced Share Registry Services located in Nedlands, Western Australia. The company announced that it has changed its registered office.

Agenix (AGX) New Appointment N/A Gary Taylor has been appointed as CFO and company secretary.

Alchemia (ACL) Director changes N/A David Green has resigned as chief financial officer and company secretary. Charles Walker was appointed as CEO of the company effective 15 March 2011.

Anteo Diagnostics (ADO) Anteo’s technology in Bangs product

N/A Anteo announced that Bangs’ silica particles to use ADO’s Mix&Go in its new Silica Bind IT product. ADO to receive royalties based on product sales and revenues from sales of Mix&Go pursuant to existing licensing terms with Bangs.

Antisense Therapeutics (ANP) ATL1103 development update N/A After completing a rights issue, the company will further develop its growth hormone receptor antisense drug ATL1103.

Antisense Therapeutics (ANP) Seeking partner for product development

N/A After successful animal studies where ATL1101 showed ability to suppress human prostate tumour growth, Antisense is now looking for a partner to develop the second generation antisense compound.

Ascent Pharmahealth (APH) Update on takeover bid by Strides

N/A The supreme court of Victoria has ordered separate scheme meetings to vote on a proposal from Strides Arcolab and an independent expert, KPMG, has concluded that the proposal is in the best interest of the shareholders

Avita Medical (AVH) Appointment of general manager

N/A The company has appointed Tiziano Caldera as general manager EMEA (Europe, Middle East & Africa). Mr Caldera will primarily be responsible for the growth and expansion of sales in the European and Middle East market.

Benitec (BLT) Formation of chief investigators’ group

N/A International experts in RNAi therapeutics join Benitec’s inaugural chief investigators group to help deliver excellence and innovation across its therapeutic programs.

Benitec (BLT) Recognition to Benitec’s DNA directed RNA interference

N/A Benitec’s technology was used by University of Queensland scientists to develop a treatment for cervical cancer, thus recognising Benitec’s gene silencing platform technology to provide effective human therapeutics for cancer.

Bone Medical (BNE) CEO appointment N/A The company announced that it has appointed Peter Young as CEO.

Calzada (CZD) Board changes N/A Oliver Stevens has resigned as non executivedirector and David Franklyn will move from executive chairman to non executive chairman.

Calzada (CZD) Recognition for research on BTM

N/A Calzada’s subsidiary, PolyNovo Biomaterials announced that burn surgeon associate professor John Greenwood received the inaugural Burke/Yannas prize at the American Burn Association conference.

Cellmid (CDY) Update on Cellmid’s Japanese operations

N/A Since the company has a number of collaborations and partnerships in Japan, it wishes to inform the market that is it not aware that any of its programs are affected at this stage by the earthquake and the tsunami.

Circadian Technologies (CIR) License to Intellectual property Estate

N/A Circadian Technology’s subsidiary Vegenics has been granted an exclusive, global licence by Chugai Pharmaceutical Co granting access to Chugai IP relating to VEGF –D. Circadian and Chugai both hold extensive VEGF-D IP portfolios which have overlapped throughout the world.

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Company Product Application Comments

Circadian Technologies (CIR) Launch of first diagnostics with US partner

N/A Circadian and Cincinnati Children’s Hospital Medical Center have commenced offering of the first blood test diagnostic for LAM lung disease. The number of tests is expected to exceed 25,000 within the next few years.


Board appointment N/A Elie Ishag has been appointed as non-executive director of the company.

CSL (CSL) Board appointment N/A Christine O’Reilly has been appointed a director of the company effective from 16 February 2011.The company announced that Peter Turner will hand over his responsibilities as president to Paul Perreault.

Genesis Research and DevelopmentCorporation (GEN)

New Board appointments/ resignation

N/A The company announced that Daniel Mahnert-Lueg and Graham Chin have been appointed as directors and that Dr Stewart Washer has resigned.

Giaconda (GIA) Appointment of voluntary administrator

N/A The company appointed Nicholas Crouch as voluntary administrator to assess the financial affairs and prospects of the company.

Immuron (IMC) Appointment of CEO N/A The company has appointed Joe Baini as interim CEO.

Living CellTechnologies (LCT)

Board appointment N/A Mr Austin, partner at investment banking firm Northington Partners in New Zealand, has been appointed as director of the board of LCT.

Living Cell Technologies (LCT) Board resignation

Board appointments

N/A

N/A

Robert Finder has resigned as director.

The company announced that Robert Willcocks has been appointed to its board of directors.

Mesoblast (MSB) Recognition for the CEO N/A The company announced that its CEO, Professor Silviu Itescu, has been named BioSpectrum Asia Pacific Person of the Year 2011.

Mesoblast (MSB) Statement on Valeant proposal to Cephalon

N/A Mesoblast made following clarifications regarding proposal from Valeant to acquire Cephalon’s shares:(1 ) Irrespective of the outcome of the Valeant proposal, Mesoblast confirms that its two phase 3 clinical programs are fully funded and on track(2 ) In the event of a change in control of Cephalon, the development and commercialisation agreement between Cephalon and Mesoblast would continue on the same terms and conditions

Novogen (NRT) Novogen receives NASDAQ notice for non-compliance

N/A Novogen has received a notice from NASDAQ advising that it was no longer in compliance with listing requirements and allowing 180 days to correct the non-compliance. In order to regain compliance, ADRs must maintain a minimum bid closing price of at least US$1.00 per share for a minimum of 10 consecutive business days during the grace period.

NuSep (NSP) Appointment N/A NuSep has strengthened its leadership team with the appointment of Malcolm Coleman as CFO

Patrys (PAB) Funding under equity facility N/A Patrys announced that in accordance with the terms of the funding facility with Advance Opportunities Fund (Advance), which were announced to the market on 3 August 2010, the company has received a further $500,000.

Patrys (PAB) Gastric cancer antibody exceeds manufacturingyield expectations

N/A Patry announced success in obtaining commercial production yields for natural human antibody PAT-SC1, facilitating the advancement of this promising product towards a second human clinical trial for the treatment of cancer.

Pharmaxis (PXS) Bronchitol EU marketing authorisation

N/A Following the oral presentation regarding Bronchitol registration to European Committee for Medicinal Products for Human Use, CHMP has give its outstanding issues list to the company. The company hopes to resolve the issue soon.

Phosphagenics (POH) Global Launch of Cellulite Cream

N/A Phosphagenics has commenced focus group trials in the US of its cosmetic products that combine a lipolytic peptide licensed from Calzada with the company’s patented TPM platform delivery technology.

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Phosphagenics (POH) Lauch of new product range N/A Phosphagenics partner, Métier Tribeca will launch eight new colour cosmetics products in the United States following the signing of a new agreement. The new range will use the Phosphagenics’ patented TPM technology enabling superior skin diffusion.

Phylogica (PYC) Recognition of Phylogica N/A The company has received the 2011 Asia Pacific Frost & Sullivan New Product Innovation Award for Peptide Screening Technologies for its phylomer platform.

Prana Biotechnology (PBT) Board change N/A Paul Marks has resigned from the position of non-executive director in order to focus on his other commitments.

Prana Biotechnology (PBT) Fellowship for Prana’s scientist N/A Prana’s co-founding scientist, professor Ashley Bush, has been awarded a $4m Australian fellowship.

Prima BioMed (PRR) Appointment of CFO N/A Ian Bangs was appointed as CFO of the company.

Progen Pharmaceuticals (PGL) Business update following Brisbane’s flood

N/A The company announced that its head office and manufacturing facility were both unaffected by flood waters. As a precaution, both these facilities were closed down but have resumed business today and the company expects minimal impact on current projects.

SciGen (SIE) Board changes N/A Martin Cooper has resigned as CFO and director of the company. In his place, the company appointed Adam Aleksandrowicz as the new CFO and director. Dr Marian Gorecki also resigned from the board.

SciGen (SIE) Board resignation N/A The company announced that Ryszard Krauze resigned as a director and chairman.

Select Vaccines (SLT) Board appointments N/A The company appointed Gary Seabrooke and Cherie Leeden as non-executive directors.

Sirtex Medical (SRX) New Head of Asia Pacific Region

N/A The company appointed Dr Burwood Chew as Chief Executive, Asia Pacific region. Dr Chew was previously a senior executive with leading global pharmaceutical company Bayer Healthcare.

Sirtex Medical (SRX) Sales growth N/A Sales of the company’s SIR-Spheres targeted radioactive treatment for liver cancer grew 17.2% for the quarter ended 31 December 2010, compared with the previous corresponding period.

Solagran (SLA) Appointment of marketing partners

N/A Solagran has appointment Siebelco as its sales amd marketing partner for the Siberian Red and Bioeffective Gel brands.

Stirling Products (STI) Manufacturing licence N/A The company announced that its Canadian subsidiary received a manufacturing licence after inspection of its pharmaceutical plant in Cape Breton, Nova Scotia.

Stirling Products (STI) Update on funding facility and progress

N/A Stirling closed its $3m funding offer with an expected oversubscription and said manufacturing operations will commence as it is now in a position where it can commit to contracts.

Virax Holdings (VHL) Director resignation N/A Dr Albert Ting resigned as director of the company and its subsidiaries with effect from 12 February 2011.

Xceed Capital (XCD) Shareholder approval of AGM resolution

N/A Seven resolutions raised were passed without exception at the company’s General Meeting on 11/03/2011.

Medical devices Total 35

Advanced Surgical Design and Manufacture (AMT)

Strategic review update N/A AMT has completed its strategic review and Michael Spooner has resigned as director thereafter. Positive outcome has come from this strategic review. In addition, Jenny Swain was appointed National Sales Manager.

Anteo Diagnostics (ADO) Director resignation N/A Lara Iacusso has resigned as non-executive director.

AtCor Medical Holdings (ACG) First half market update N/A The company announced unaudited FY2011 sales of $4.4m, an 8% increase in constant currency terms. US sales increased by 19% and the company signed three major contracts in the second quarter with an average value of over US$1m.

AtCor Medical Holdings (ACG) Study endorses central blood pressure measurement

N/A A 15-year Taiwanese study showed that central blood pressure measurement helps in better prediction of mortality than either brachial blood pressure or 24-hour ambulatory monitoring of peripheral blood pressures measured at the arm.

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AtCor Medical Holdings (ACG) SphygmoCor N/A A study published in ‘Intensive Care Medicine’ has found that SphygmoCor systems are equal in performance to an invasive catheter when assessing improvements in cardiac function of patients in shock.

Austofix Group (AYX) Board resignation N/A Geoff Driscoll has resigned as non-executive director of the company. Mr Driscoll will seek reappointment to the board in the month of August.

Avita Medical (AVH) ISO certification update N/A The company has completed its ISO certification audit and received ISO re-certification. Now the company is free to CE Mark all regenerative and respiratory products for sale in the European Union.

BioMD (BOD) Board appointments N/A The new group of bioMD and Allied will have the following persons on board of bioMD upon successful completion of the offer:- (1) Lee Rodne ‐ CEO, Allied Medical, (2) Chris Catlow – Non‐Executive Chairman, Allied Medical, (3) Graeme Rowley – Non‐Executive Director, Allied Medical.

Brain Resource (BRC ) Resignation N/A Paul Keating, founding Director of Brain Resource, has tendered his resignation as a director.

Compumedics (CMP) Milestone EEG contract win N/A Compumedics has been awarded a contract of more than A$500k to supply EEG equipment for the neuroscience centre at the new Royal Children’s Hospital Melbourne which will open in late 2011.

Cyclopharm (CYC) Board changes N/A William Richardson resigned as company secretary and James McBrayer was appointed in his place.


Director’s clarification on sale of shares

N/A Michael Stewart clarified that he remains committed to the company and believes strongly in the sublingual malaria project. This clarification was given as he sold 6,666,666 EMS shares via an off market transfer.


First tender allotment N/A EMS announced that its subsidiary Eastland Medical (WA) Pty Ltd has been awarded a $2.5m contract to supply Sterile Gauze products to the Western Australian Public Health Service over five years.

Ellex Medical Lasers (ELX) New product N/A The company will introduce a new diagnostic ultrasound mode for its leading Eye Cubed system at ASCRS. This will offer a number of benefits, including improved image resolution.

Ellex Medical Lasers (ELX) Appointment resignation N/A The company announced the appointment of Tom Spurling as group CEO and promotion of Yukitaka Isoda to the position of President, global operations.

Fluorotechnics (FLS) Change of role – CEO N/A James Walker will cease to be managing director and CEO but will continue as an executive director.

Genera Biosystems (GBI) Commercialisation and development update

N/A Genera Biosystems partner has requested more time before finalising a commercialisation agreement for the modified HPV test.

Genera Biosystems (GBI) Milestone payment N/A Genera has received a milestone payment from its R&D partner in respect of a program designed to optimise Genera’s HPV test to run on the partners’ instrument.

HeartWare International (HIN) Q4 results N/A HeartWare International announced that its preliminary revenue for the fourth quarter ended 31 December 2010 is expected to be approximately $20m and preliminary revenue for the full year 2010 is expected to be approximately $54m.

ImpediMed (IPD) L-Dex testing N/A Presbyterian Hospital Columbia University Medical Center has identified the importance of BIS technology (L-Dex) and its role in the clinical assessment of lymphoedema by offering L-Dex testing to patients in clinical assessment of breast cancer.

KarmelSonix (KSX) Launch of new service in Australia

N/A KarmelSonix has launched a new At-Home overnight patient sleep and asthma monitoring service business in Australia based on its TGA approved WHolter devices.

KarmelSonix (KSX) Listing at NASDAQ N/A The company confirmed that it will list its securities on NASDAQ-OTC QX by July 2011.

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Appointments N/A The company confirmed the appointment of Miles Kennedy and Mark Drummond to the board.

Medigard (MGZ) CEO resignation N/A Peter Emery resigned as CEO and company secretary Patrica Boero will take his place.

MediVac (MDV) Appointments N/A The company appointed Reba Meagher and Helen Owens as non executive directors and Paul Cross as business development manager and shifted its office from Melbourne to Sydney.

Medtech Global (MDG) Appointments N/A Richard Flory resigned as director of the company.

ResMed (RMD) Management changes N/A Kieran T. Gallahue resigned as CEO, president and director and Dr Peter C. Farrell, has been appointed as interim CEO and president.

Sirtex Medical (SRX) Update on legal proceedings N/A Out of the total sum of $2,575,185.83 paid by Dr Gray to Sirtex towards damages, the court has allowed Dr Gary’s appeal in part and has allowed Sirtex to retain more than 95% of the total sum referred to above.

SomnoMed (SOM) CEO transfers to the US N/A SomnoMed’s CEO Ralf Barschow moved to the US in March 2011 to be based at the company’s North American head office in Dallas, Texas as president of SomnoMed North America.

Sunshine Heart (SHC) Board appointment N/A Paul Buckman has been appointed to the Sunshine Heart board as a non-executive director.

Unilife Corporation (UNS) Change of registered office N/A The company has changed its registered office to:-250 Cross Farm LaneYork, PA 17406USA

Unilife Corporation (UNS) Appointments, share purchase, commencement of production

N/A The company appointed Dr. Ramin Mojdeh as its new chief operating officer and executive vice president. The company’s CEO and COO made an open market purchase of Unilife shares on ASX with an approximate value of A$503,000 and US$252,023 respectively. Unilife has also started initial production of the Unifill ready-to-fill (prefilled) syringe at its FDA registered manufacturing facility in York, Pennsylvania.

Universal Biosensors (UBI) Launch of OneTouch Verio N/A The company’s new product, OneTouch Verio,has been made available for sale in Italy and France.

Universal Biosensors (UBI) Appointment N/A Paul Wright had been appointed chief executive officer of the company.

Uscom (UCM) Distributor appointed N/A Uscom appointed US medical device distributor Provider Enterprises, thereby doubling its coverage of US hospital beds through its new distribution channel from 23% to 56%.

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Appendix

05

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Companies in the PwC Life Sciences Index

Closing MCap (A$m) Quarterly return Annual return (Mar 10-Mar 11)

Medical Device Q3 FY11

ACG ATCOR MEDICAL HOLDINGS LIMITED 12.74 12% -36%

ADO ANTEO DIAGNOSTICS LIMITED 52.28 -18% 32%

AMT ADVANCED SURGICAL DESIGN & MANUFACTURE LIMITED 9.00 -26% -53%

AYX AUSTOFIX GROUP LIMITED 7.62 -3% -45%

BOD BIOMD LIMITED 7.29 72% 10%

BRC BRAIN RESOURCE COMPANY LIMITED (THE) 32.56 78% 37%

CBB CORDLIFE LIMITED 46.52 3% -22%

CGS COGSTATE LTD 11.98 -23% -37%

CLV CLOVER CORPORATION LIMITED 49.55 -23% 18%

CMP COMPUMEDICS LIMITED 17.82 -37% -27%

COH COCHLEAR LIMITED 4,709.27 3.2% 14%

CXD CATHRX LTD 28.66 -32% 27%

CYC CYCLOPHARM LIMITED 8.55 -41% -55%

ELX ELLEX MEDICAL LASERS LIMITED 16.98 -35% 18%

EMS EASTLAND MEDICAL SYSTEMS LTD 16.88 -31% -56%

GBI GENERA BIOSYSTEMS LIMITED 18.26 -43% -66%

HIN HEARTWARE INTERNATIONAL, INC 1,148.07 0% 74%

IPD IMPEDIMED LIMITED 117.37 -7% -7%

ITD ITL LIMITED 9.08 1% 27%

KSX KARMELSONIX LIMITED 13.81 -19% -43%

LBT LABTECH SYSTEMS LIMITED 6.06 -6% -32%

MDG MEDTECH GLOBAL LIMITED 6.52 0% 35%

MDV MEDIVAC LIMITED 7.84 -50% -29%

MGZ MEDIGARD LIMITED 3.64 -27% -42%

MLA MEDICAL AUSTRALIA LIMITED 13.46 169% 127%

NAN NANOSONICS LIMITED 212.31 7% 55%

NDL NEURODISCOVERY LIMITED 4.27 2% 17%

OBJ OBJ LIMITED 24.07 -13% -50%

OIL OPTISCAN IMAGING LIMITED 6.22 -35% -27%

RMD RESMED INC 4,461.39 -17% -17%

RVA REVA MEDICAL 444.96 0% N/A

SHC SUNSHINE HEART, INC. 42.54 17% 27%

SOM SOMNOMED LIMITED 44.35 12% 17%

TDX TYRIAN DIAGNOSTICS LIMITED 6.01 -14% -60%

UBI UNIVERSAL BIOSENSORS, INC. 198.66 -18% -27%

UCM USCOM LIMITED 15.45 2% -52%

UNS UNILIFE CORPORATION 327.75 -2% -18%

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Closing MCap (A$m)

Quarterly return Annual return (Mar 10-Mar 11)

Pharma and Biotech Q3 FY11

ACL ALCHEMIA LIMITED 132.42 10% 12%

ACR ACRUX LIMITED 502.40 -15% 29%

ACU ACUVAX LIMITED 1.91 -75% -86%

ACW ACTINOGEN LIMITED 2.37 -24% 67%

AGX AGENIX LIMITED 14.69 -17% 15%

ALT ANALYTICA LIMITED 11.51 8% -52%

ANP ANTISENSE THERAPEUTICS LIMITED 11.55 86% -31%

AOP APOLLO CONSOLIDATED LIMITED 5.60 -33% 0%

APH ASCENT PHARMAHEALTH LTD 96.03 4% 17%

AVH AVITA MEDICAL LTD 12.97 0% -24%

AVX AVEXA LIMITED 42.38 28% -67%

BDM BIODIEM LIMITED 18.27 38% -2%

BIT BIOTRON LIMITED 14.95 -5% 9%

BLT BENITEC LIMITED 14.02 12% -35%

BNC BIONICHE LIFE SCIENCES 131.08 0% N/A

BNE BONE MEDICAL LIMITED 3.57 -22% -75%

BNO BIONOMICS LIMITED 165.70 65% 55%

BPO BIOPROSPECT LIMITED 16.75 50% -30%

BTA BIOTA HOLDINGS LIMITED 190.49 6% -54%

CBZ CBIO LIMITED 97.17 214% N/A

CDY CELLMID LIMITED 8.98 -17% -11%

CIR CIRCADIAN TECHNOLOGIES LIMITED 32.48 23% -3%

CSL CSL LIMITED 19,337.18 -2% -2%

CST CELLESTIS LIMITED 286.53 19% 1%

CTE CRYOSITE LIMITED 4.66 -5% -13%

CUV CLINUVEL PHARMACEUTICALS LIMITED 55.45 -12% -31%

CXS CHEMGENEX PHARMACEUTICALS LTD 182.76 42% 48%

CZD CALZADA LIMITED 17.68 96% 55%

GEN GENESIS RESEARCH AND DEVELOPMENT CORPORATION LIMITED 1.05 -13% -46%

GIA GIACONDA LIMITED 2.73 25% -5%

GTG GENETIC TECHNOLOGIES LIMITED 35.61 167% 151%

HCT HOLISTA COLLTECH LIMITED4 11.66 -25% -25%

HTX HEALTHLINX LIMITED 9.57 -23% -61%

HXL HEXIMA LIMITED 29.99 1% -14%

IDT INSTITUTE OF DRUG TECHNOLOGY AUSTRALIA LIMITED 21.60 -17% -40%

IMC IMMURON LIMITED 23.65 3% -15%

IMU IMUGENE LIMITED 5.31 -33% -20%

LCT LIVING CELL TECHNOLOGIES LIMITED 24.37 -41% -68%

MSB MESOBLAST LIMITED 2,023.25 55% 255%

MVP MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED 23.93 5% 127%

MYX MAYNE PHARMA GROUP LIMITED 99.25 -7% -8%

NEU NEUREN PHARMACEUTICALS LIMITED 7.02 0% -52%

NRT NOVOGEN LIMITED 27.57 125% -39%

NSP NUSEP LIMITED 14.63 -13% 6%

PAB PATRYS LIMITED 28.66 19% -21%

PBP PROBIOTEC LIMITED 30.17 -15% -65%

PBT PRANA BIOTECHNOLOGY LIMITED 60.52 92% 79%

PCC PROBIOMICS LIMITED 2.94 20% -37%

PGL PROGEN PHARMACEUTICALS LIMITED. 8.40 7% -42%

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Closing MCap (A$m)

Quarterly return Annual return (Mar 10-Mar 11)

Pharma and Biotech Q3 FY11

POH PHOSPHAGENICS LIMITED 90.60 -8% -4%

PRR PRIMA BIOMED LTD 217.93 62% 96%

PVA PSIVIDA CORP. 82.97 -26% -17%

PXS PHARMAXIS LTD 609.10 -10% -6%

PYC PHYLOGICA LIMITED 19.00 5% -25%

QRX QRXPHARMA LIMITED 194.95 11% 68%

SIE SCIGEN LIMITED 60.75 -15% -63%

SLA SOLAGRAN LIMITED 35.91 -22% -42%

SPL STARPHARMA HOLDINGS LIMITED 303.67 49% 80%

SRX SIRTEX MEDICAL LIMITED 295.57 -12% -11%

STI STIRLING PRODUCTS LIMITED 9.47 -29% -58%

TEO TELESSO TECHNOLOGIES LIMITED 1.93 35% -50%

TIS TISSUE THERAPIES LIMITED 97.50 -2% 220%

VHL VIRAX HOLDINGS LIMITED 4.88 0% -66%

VLA VIRALYTICS LIMITED 24.95 33% -19%

Notes:

BNC Bioniche Life Sciences was added into index.

RVA Reva Medical was added into index.

SLT Removed from Index. Company has divested into other opportunites.

MOD Removed from Index. Company has divested into mining opportunites.

XCD Removed from Index. Company has divested into other opportunites.

BPH Removed from Index. Company has divested into energy opportunities.

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Methodology

06

49 PwC

SourcesBioForum draws on historical data from the following sources:

• Bloomberg• Connect 4• The ASX• Company websites• PwC Global Pharma and Life

Science Quarterly Newsbriefs

Market performanceThe Australian life sciences sector’s market performance is tracked through two indices:

1. PwC Life Sciences Index

2. PwC Life Sciences Index ex majors (CSL, ResMed and Cochlear)

Analysis is provided without the large-capitalisation stocks (majors) so the performance of smaller-capitalisation stocks can be observed.

The PwC Life Sciences Index is based on the performance of life sciences companies listed on the Australian Securities Exchange (ASX). It comprises two subsectors:

1. Pharmaceutical / biotechnology

2. Medical devices

These sectors have been classified according to the Global Industry Classification Standard. The index includes life sciences companies primarily involved in research, development, commercialisation and manufacturing of pharmaceutical and biotechnology products and medical devices. It excludes healthcare, medical software and distribution companies. Companies included in the PwC Life Sciences Index are listed at the end of each issue of BioForum.

The PwC Life Sciences Index is based on the combined market capitalisation of the listed companies and calculates the change of their value over the quarter and change over the previous year. These changes are compared to the changes in the market performance of the following indices:

• ASX All Ordinaries• NASDAQ Composite

• NASDAQ Biotech

Different formulae are used to calculate the value of these indices and track their performance. These formulae use a combination of company market prices and a weighted average of market capitalisation. Because of these different methods of calculating value, the absolute value of the indices cannot be directly compared. Only their changes over time can be sensibly compared.

Top and bottom performersAnnual data on these companies is sourced from Bloomberg each quarter. Company announcements are sourced from the ASX or directly from company websites.

IPOandsecondaryfinancemarketsIPO and secondary financing data is sourced from the Connect 4 database’s health-care industry category. We include data from companies on the PwC Life Sciences Index only. Data on options, rights and bonus issues is excluded. The US IPO and secondary financing data is sourced from our quarterly PwC Global Pharma and Life Sciences Newsbrief.

AnnouncementsThese are from companies listed on the PwC Life Sciences Index only. They are sourced from Connect 4 using the health-care industry category. We include announcements on partnerships, mergers and acquisitions and divestments, clinical results, regulatory activity and other information. Examples of other information include management and board changes, the closing or opening of offices, and successful grant applications.

Announcements on the following are excluded:

• trading halts• capital raisings• proposed (versus actual) mergers,

acquisitions and partnerships• progress reports on clinical trials

(results only are included)• market registration approval.

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Written and edited by:PwC (pwc.com), a global professional services organisation serving the life sciences sector and other industries, with the help of editor and proofreader Karen Hunt.

External contributors:PwC Global Pharmaceutical Team

Quantitative research and analysis by the PwC BioForum team:Joe Adendorff, Senior Consultant Stephen Hearne, Consultant

PwC Life Sciences Practice contributors:Craig Lawn, Partner, National Life Sciences Industry Leader Manoj Santiago, Partner, Sydney Life Sciences Industry Leader

Acknowledgements

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This document is provided by PwC as general guidance only and does not constitute the provision of accounting, legal advice, tax services, investment advice, or professional consulting of any kind. The information is provided “as is” with no assurance or guarantee of completeness, accuracy or timeliness of the information and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will PwC or its professionals be liable in any way to you or to anyone else for any decision made or action taken in reliance on the information or for any direct, indirect, consequential, special or other damages related to you or your use of information, even if advised of the possibility of such damages. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all the pertinent facts relevant to your particular situation.

© 2011 PricewaterhouseCoopers. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers a partnership formed in Australia, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

PricewaterhouseCoopers201 Sussex StreetSydney NSW 2000+61 2 8266 0000

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