www.pwc.com.

au/bioforum

A changing market creates opportunities for Life Sciences companies

BioForum
Edition 43
Quarter 3 FY13 April 2013

Highlights
Q3FY13 Key Statistics
- Life Sciences index up 7.1% (up 9.4% Q2FY13) - Life Sciences ex majors up 7.7% (down 8.2% Q2FY13) - All Ordinaries up 6.8% (up 5.9% Q2FY13) - NASDAQ Composite up 7.3% (down 3.1% Q2FY13) - NASDAQ Biotech up 16.7%, (down 3.7% Q2FY13)

Highlights

Key development for the quarter

Zoetis, Pfizers animal pharmaceuticals spin-off, raised USD$2.24b in the largest US IPO since Facebook. The Australian government promised a $350m injection into the Innovation Investment Fund and proposed ten Industry Innovation Precincts at an estimated cost of $500m. There were multiple major clinical trial developments during the quarter:
- Pharmaxis was knocked back by the FDA for Bronchitol use in cystic fibrosis patients and will require further clinical trials - QRx resubmitted its FDA application for the pain-killer MoxDuo for an expected response in August - The European Commission Medical Devices Group meeting voted that Tissue Therapies VitroGro treatment should be regulated in Europe as a medicine, not a medical device - A Novogen study showed its CS-6 molecule was highly active against ovarian cancer stem cells

3
Introduction

Introduction
In the third quarter.
The Australian Life Sciences Index recorded another positive quarter at 7.1 per cent, led by ex-major firms. The Index finished largely in line with All Ordinaries Index, which grew 6.8 per cent, its highest level since late 2008. The NASDAQ Biotech Index rose by 20.4 per cent off the back of the NASDAQ Composites continuing positive run (7.3 per cent increase). Biotechs have had a strong quarter, with a changing Australian economy encouraging investors to cast a shrewd eye over the Life Sciences industry in search of promising returns, said Manoj Santiago, PwC Life Sciences partner.

Commentary
Against this current backdrop of optimism we have seen markets remain unforgiving on companies which dont reach clinical trial endpoint, said Mr Santiago. It takes a combination of skill, patience and a little luck to manage a clinical trial to ensure the best return on investment is achieved. As Australian investors look for new sources of returns, its important to note that the fundamentals of the Life Sciences sector remain strong: an ageing population, continued demand for innovation and cost efficiency for the health sector, sustained government attention and increasing support.

Sector performance
Life Sciences Index ex majors marginally outperformed the Life Sciences Index at 7.7 per cent but the index is still trailing by 42 per cent for the year to date. The improved performance of the ex-majors was led by non-major Medical Devices companies, with the sub- index up by 12.1 per cent. The overall Pharma/ Biotech index was up 8.9 per cent in comparison, but non major Pharma/Biotech firms underperformed due to mixed clinical trial results from a few participants, up 5.6 per cent for the quarter.

IPOs and secondary raisings

Although there were again no Australian IPOs, there are promising signs coming from the US, with eight IPOs this quarter totalling $2.42b including the $2.2b Zoetis float, Pfizers animal pharmaceutical spinoff. A further ten IPOs are publicly know to be in preparation as at the end of March. However, post IPO performance has been largely negative for these companies, down approximately 5 per cent on average to the end of March. Some commentators have suggested that this is due to post IPO profit taking as opposed to fundamental concerns regarding the companies. The Australian secondary financing market had a strong quarter, with the $207m total raisings largely due to Mesoblasts $170m raising to fund clinical trials. Secondary funding remains strong in the Australian market with the hope that the US IPO strength may flow through to Australia, said Mr Santiago. Anecdotally this appears to be happening with an increase in IPOs expected in Australia in the next 12 months.

Manoj Santiago PwC Private Clients pwc.com.au/privateclients

Secondary funding remains strong in the Australian market with the hope that the US IPO strength may flow through to Australia, said Mr Santiago. Anecdotally this appears to be happening with an increase in IPOs expected in Australia in the next 12 months.

PwC | BioForum: April 2013

An interview with Sirtex

Sirtex is a global life-sciences company that develops anddelivers oncology treatments using novel small particle technology. Sirtexs main commercialised product is a targeted radiation treatment for liver cancer called SIR-Spheres microspheres. The product is currently in Phase 4 clinical trials. PwC spoke to Mr Darren Smith, CFO and Company Secretary and Dr David Cade, Chief Medical Officer, about the companys success to date.
Since receiving FDA approval in 2002 for its core product, SIR-Spheres, Sirtex has gone from strength to strength. CFO Darren Smith attributes the companys success to two key things: an ability to stick to the fundamentals, and living up to shareholder expectations to maintain long-term loyalty. If you look at our share registry, youll see that 75 percent represents the top 20 holders, says Smith. Within that, the top four or five holders have something like 60 percent. They are very strong believers in the technology. There are a lot of long-term investors, and they have advised us that they are maintaining their holding as they are looking to the future. It seems that loyalty is about to pay off: Sirtex has five large randomised controlled trials in the post marketing phase with data likely to be ready to be presented to the market in early 2015. And according to Dr David Cade, Sirtex Chief Medical Officer, that data is likely to drive further growth beyond the compound 23 per cent growth weve seen over the last four or five years. Sirtexs key product was developed back in the 80s by Professor Bruce Gray. By the time Sirtex Medical Limited listed in August 2000, the product had already been through clinical trials the IPO capital raising was to fund the regulatory dossier. The company received FDA approval in 2002, shortly followed by the CE mark for European regulatory approval, Smith says. Then they commenced commercial sales. The clinical trials that they ran were small, only around 70 patients, but it was sufficient to get approval. But this still wasnt enough to gain wider approval among oncologists, according to Cade. The pivotal clinical trial conducted at the University of Western Australia was enough to get regulatory approval and early reimbursement in the marketplace, but insufficient to convince the oncology community that they should change their practice of medicine and adopt this newly available therapy into their standard practice, says Cade. So thats why weve been on the market now for a decade and have been selling product commercially, but we still dont have large amounts of clinical data from very big randomised controlled trials off of which to market the product very effectively. Smith is confident that the results of the $60 million trial program will be positive, but stresses that the companys bottom line is already healthy. Over the last three years, weve built the clinical team that is able to administer and promote the trials to ensure they are successfully completed. Running these studies is similar to running the business itself. If youre not out there promoting it, if youre not out there making sure youve got people being recruited on to the program; its not just going to happen. This is really the long-term strategy for the growth of the business. Whats happening in the meantime, and for the existing commercial businesses, is that weve also seen strong growth in the organisation in spite of the fact that we havent got these clinical trials results to take out to oncologists. And thats been more of a matter of going back to fundamentals. Over that last five-year period our commercial sales have more than doubled, he says. In 2008, we turned over $38 million, and last year we turned over around $80 million. Smith says while the company is happy to point to its track record, its been reluctant to talk up the potential of the company given the fickle nature of the life sciences sector. Sirtex has always been very conservative in its communications with the investment community, hesays. We havent gone out there and pushed the blue sky. We do talk about being less than 1 percent of the market, but we dont go out there and say were going to get 100 percent or even 50 percent of it. What we do point out is our performance in the past. If we say were going to go out and do something, well go out and do it and achieve it. Thats what the organisation has done.

PwC | BioForum: April 2013

The thing about this industry is that deadlines are almost impossible to calculate. Even to get an approval from the FDA, theres no guarantee that theyll accept the data that you provide, or that itll be sufficient, or that they dont come back and ask other questions that will extend the period, even if theres no issue around it. Sometimes its best not to talk about what you cant control. So we dont talk about the markets were trying to get into; we talk about the ones weve got. Theres also an awareness of the need for some kind of back-up plan, which includes new technologies, and new markets. The organisation has a portfolio of new technologies which are in pre-clinical, and were continuing to developmarkets in Malaysia and the Philippines on top of our presence in India, Korea, Taiwan and Hong Kong. Other markets were looking to get into are Japan and China. Both are considerably larger markets, and obviously more valuable, but both are considerably more complex to enter. Those two markets are probably a two to four year process for us. So what advice does the pair have for other companies in the Life Sciences space? Firstly, if you look at healthcare, I think invariably therapeutics is more attractive [than diagnostics] because you can potentially command much higher margins, says Cade. And [within that], therapeutics in oncology is a very attractive place to be, because there remain significant areas of high unmet clinical need one of which is the area that were in, which is liver cancer; whether its primary liver cancer which is a disease of Asia and Mediterranean Europe, or bowel cancer that has spread into the liver, which is a disease of the West. The second thing I would say is that in the Australian market in the life sciences space, way too many entities list as a funding exercise rather than as an exit for thefounders.

In the case of Sirtex, Cade says, the founder developed a product while on staff at a university in WA with funding from research grants as well as Rotary and Lions Club. It only went to market to raise capital to take the data from that pivotal trial to package it up into a dossier to submit to the FDA, says Cade. So right at the pre commercial stage all of the hard work had been done, and the market was only providing the capital for the penultimate step, prior to getting to commercial stage. Thats really when the market is appropriate to go and source capital from not when you go to the market to raise capital for a phase 1 trial, in a 10 or 12 year development process, and youve got to go back cap in hand and dilute your early investors. Smith agrees that many biotech companies in Australia list too early. There are biotechs in Australia that seem to use listing on the stock exchange as a business model; raise the money, spend it, raise the money, spend it. It doesnt give the industry a very good name. Youre basically burning your bridges with going back to the market all the time. My philosophy is that you really shouldnt be coming to market until youve got a product that you know is going to be commercial. Otherwise youre kidding yourself. Also, youve got to pick your investors for what youre doing. We make money, we show a return and weve got a large potential for growth so were perfect for investors with a growth focus.

Mr Darren Smith
Chief Financial Officer Sirtex

Dr David Cade

Chief Medical Officer Sirtex

Michelle Chiang
Life Sciences Partner PwC

6
Contents

Contents

08 27
Appendix

Quarterly key findings

10 31

Market performance

20 33
Contacts

Announcements

Methodology

PwC | BioForum: April 2013

01
Quarterly key findings

8
Quarterly key findings

Quarterly key findings

Market performance
Life sciences industry total MCap Life sciences industry growth Pharma/biotech sector total MCap Pharma/biotech sector growth Medical device sector total MCap Medical device sector growth

Q3 FY13
A$47,754m 7.1% A$34,870m 9.0% A$12,884m 2.3%

Page
11

12

13

Individual company performance

Top individual performer Change in market cap over the past four quarters Bottom individual performer Change in market cap over the past four quarters Cryosite Limited 308% Bioxyne Ltd -93% 19 18

Financing
Australian IPO count Total raised US IPO count Total raised Australian secondary financing count Total raised US secondary financing count Total raised 0 A$m 8 A$2,415m 32 A$207m 57 A$1,796m 16 16 14 14

Announcements Australia
Partnerships Mergers & acquisitions Clinical trials Regulatory Other

Q3FY13
14 5 22 19 6

Page
21 22 23 24 26

PwC | BioForum: April 2013

02
Market performance

10
Market performance

Performance overview
Figure 1: Weekly performance over the quarter of the Australian life sciences compared to major indices
20% 16% 12% 8% 4% 0% -2% 31-Dec 04-Jan 11-Jan 18-Jan 25-Jan 01-Feb 08-Feb 15-Feb NASDAQ Biotech 22-Feb 01-Mar Life Sciences 08-Mar 15-Mar 22-Mar 31-Mar

ASX All Ordinaries

NASDAQ Composite

Life Sciences ex majors

Table 1: Quarterly movements of the Australian life sciences sector compared to major indices
Value 30-Sep-12 ASX All Ordinaries (Index) NASDAQ Composite (Index) NASDAQ Biotech (Index) Life Sciences (market cap A$m) Life Sciences ex majors (market cap A$m) 4,406 3,116 1,486 40,786 8,249 31-Dec-12 4,665 3,020 1,431 44,604 7,573 31-Mar-13 4,980 3,239 1,669 47,754 8,157 % Change (Sep-Dec) 5.9% -3.1% -3.7% 9.4% -8.2% % Change (Dec-Mar) 6.8% 7.3% 16.7% 7.1% 7.7%

Graph 1: Quarterly movements of the Australian life sciences sector compared to major indices
20.0% 15.0% 10.0% 5.9% 5.0% 0.0% -5.0% -10.0% ASX All Ordinaries (Index) NASDAQ Composite (Index) NASDAQ Biotech (Index) % Change (Dec-Mar) Life Sciences (market cap A$m) -3.1% -3.7% -8.2% Life Sciences ex majors (market cap A$m) 9.4% 6.8% 7.3% 7.1% 7.7% 16.7%

% Change (Sep-Dec)

Figure 2: Two-year comparison of the Australian life sciences sector by market capitalisation compared to major indices
80% 60% 40% 20% 0% -20% -40% -60% 31-Mar-11 30-Jun-11 30-Sep-11 31-Dec-11 NASDAQ Composite 31-Mar-12 30-Jun-12 30-Sep-12 Life Sciences 31-Dec-12 Life Sciences ex majors 31-Mar-13

ASX All Ordinaries

NASDAQ Biotech

PwC | BioForum: April 2013

11
Market performance
Table 2: Yearly performance of the Australian life sciences sector by market capitalisation compared to major indices
% Change (Dec11-Dec12) 31-Dec-11 ASX All Ordinaries (Index) NASDAQ Composite (Index) NASDAQ Biotech (Index) Life Sciences (market cap A$m) Life Sciences ex majors (market cap A$m) 4,111 2,605 1,085 31,420 7,622 31-Dec-12 4,665 3,020 1,431 44,604 7,573 % Change 13.5% 15.9% 31.9% 42.0% -0.6% % Change (Mar12-Mar13) 31-Mar-12 4,420 3,092 1,281 35,099 8,708 31-Mar-13 4,980 3,239 1,669 47,754 8,157 % Change 12.7% 4.8% 30.3% 36.1% -6.3%

Graph 2: Yearly performance of the Australian life sciences sector by market capitalisation compared to major indices
50.0% 42.0% 40.0% 31.9% 30.0% 20.0% 10.0% 0.0% -0.6% -10.0% ASX All Ordinaries (Index) NASDAQ Composite (Index) NASDAQ Biotech (Index) Life Sciences (market cap A$m) -6.3% Life Sciences ex majors (market cap A$m) 15.9% 4.8% 30.3% 36.1%

13.5%

12.7%

% Change (Dec11-Dec12)

% Change (Mar12-Mar13)

Figure 3: Quarterly performance of the Australian life sciences sector and subsectors
20% 15% 10% 5% 0% -5% 31-Dec-12

07-Jan-13

14-Jan-13

21-Jan-13

28-Jan-13

04-Feb-13

11-Feb-13

18-Feb-13

25-Feb-13

04-Mar-13 Med Device

11-Mar-13

18-Mar-13

25-Mar-13

Lif e Sciences

Lif e Sciences ex majors

Pharma/Biotech

Pharma/Biotech ex CSL

Med Device ex COH, RMD

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

MCap (A$m) Pharma/Biotech Pharma/Biotech ex CSL Med Device Med Device ex COH, RMD Life Sciences Life Sciences ex majors 34,870 5,411 12,884 2,746 47,754 8,157

Companies Proportion Companies Proportion Companies Proportion Total % of total with share of subsector with share of subsector with share of subsector number of value price gains up price losses down price flat flat companies 73% 66% 27% 34% 100% 100% 19 18 18 17 37 35 35% 33% 49% 49% 40% 39% 30 30 14 13 44 43 55% 56% 38% 37% 48% 48% 6 6 5 5 11 11 11% 11% 14% 14% 12% 12% 55 54 37 35 92 89

12
Market performance
Figure 4: Two-year comparison of the Australian life sciences indices performance by market capitalisation
60% 40% 20% 0% -20% -40% 31-Mar-11 30-Jun-11 Life Sciences 30-Sep-11 Life Sciences ex majors 31-Dec-11 31-Mar-12 30-Jun-12 Pharma/Biotech ex CSL 30-Sep-12 Med Device 31-Dec-12 31-Mar-13 Pharma/Biotech Med Device ex COH, RMD

Table 4: Quarterly performance of the Australian life sciences sectors by market capitalisation $A$m
Market capitalisation (A$m) 30-Sep-12 Pharma/Biotech Pharma/Biotech ex CSL Med Device Med Device ex COH, RMD Life Sciences Life Sciences ex majors 28,744 5,501 12,041 2,747 40,786 8,249 31-Dec-12 32,006 5,123 12,598 2,450 44,604 7,573 31-Mar-13 34,870 5,411 12,884 2,746 47,754 8,157 % Change (Sep-Dec) 11.3% -6.9% 4.6% -10.8% 9.4% -8.2% % Change (Dec-Mar) 8.9% 5.6% 2.3% 12.1% 7.1% 7.7%

Graph 3: Quarterly performance of the Australian life sciences sector and subsectors by market capitalisation
15.0%

11.3%
10.0%

12.1% 8.9% 5.6% 9.4% 7.1% 7.7%

5.0%

4.6% 2.3%

0.0%

-5.0%

-6.9%
-10.0%

-8.2% -10.8%
Pharma/Biotech Pharma/Biotech ex CSL % Change (Sep-Dec) Med Device Med Device ex COH, RMD % Change (Dec-Mar) Life Sciences Life Sciences ex majors

-15.0%

PwC | BioForum: April 2013

13
Market performance

IPO financing
Quarterly financing

Figure 5: Quarterly comparison of IPOs in Australia

50

Table 5: Number of quarterly Australian IPO listings

Biotech Q3FY13 Q2FY13 Med Devices 1 ASX 12 17 9 13 12

40
Capital Raised (A$m)*

40 30

Q1FY13 Q4FY12 Q3FY12

20

Table 6: Listing of quarterly Australian IPO listings

10

0 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Biotech Q3FY13 Medical Devices

Company None

Listing date

Capital raised (A$)

Valuation on listing

Sector

Note: * Amount shown is total market cap addition to the LS Index from IPOs on first day of trading

Total

Figure 6: Quarterly comparison of IPOs in the US

3,000

Table 7: Total of quarterly US IPO listings

Biotech Q3FY13 6 3 1 3 3
55

Med Devices 2 1 1 1 -

2,500 Capital Raised (A$m)* 2,000 1,500

Q2FY13 Q1FY13 Q4FY12

2,361

1,000 500 12

Q3FY12

158 Q3FY12

187 Q4FY12

95 49 Q1FY13

4 229 Q2FY13 Biotech Q3FY13

Table 8: Listing of quarterly US IPO listing

Capital raised (A$m) 43 32 67 2,132 9 48 72 12 2,415

Medical Devices

Company LipoScience Inc Stemline Therapeutics Inc KaloBios Pharmaceuticals Inc Zoetis Inc Imprimis Pharmaceuticals Inc TherapeuticsMD Inc Tetraphase Pharmaceuticals Inc Electrical Geodesics Inc Total

Listing date 24/01/2013 28/01/2013 31/01/2013 31/01/2013 07/02/2013 14/03/2013 19/03/2013 27/03/2013

Sector Med Devices Biotech Biotech Biotech Biotech Biotech Biotech Med Devices

Note: * Amount shown is total amount raised

14
Market performance

Yearly financing

Figure 7: Annual comparisons of IPOs in Australia

600 500 Capital Raised (A$m) 400 300 200 100 24 0 7 360

Table 9: Number of IPO listings in Australia

Biotech FY13 FY12 FY11 FY10 FY09 1 1 1 Med Devices 2 1 ASX 12 75 127 53 24

352 145

FY09

FY10

FY11

FY12
Biotech

FY13

Medical Devices

Figure 8: Annual comparison of IPOs in the US

3,000 154 2,500
Capital Raised (A$m)

Table 10: Number of IPO listings in the US

Biotech FY13 FY12 FY11 10 12 6 7 Med Devices 4 4 8 2 1

2,000 251 1,500 1,000 500 0 6 FY09 FY10 2,638 1,662 458 368 FY11 586 FY12
Biotech

FY10 FY09

107

FY13

Medical Devices

PwC | BioForum: April 2013

15
Market performance

Secondary finance market

Quarterly financing
Figure 9: Quarterly comparison of secondary financing inAustralia
250 6

Table 11: Number of secondary deals (AU)

Avg. amount raised ($m) 8.0 5.1 1.2 0.4 0.6 Avg. amount raised ($m) 0.9 2.1 0.6 2.3 1.0

Biotech Q3FY13 Q2FY13 25 22 24 21 16

Med Devices 7 12 8 12 9

200 Capital Raised (A$m)

150 25 100 111 5 9 9 Q3FY12 28 9 Q4FY12 28 Q1FY13 Q2FY13 Biotech Q3FY13 201

Q1FY13 Q4FY12 Q3FY12

50

Medical Devices

Figure 10: Quarterly comparison of secondary financing inthe US

18,000 16,000 14,000 Capital Raised (A$m) 12,000 10,000 8,000 6,000 4,000 2,000 0 207 2,027 389 1,767 721 1,055 473 1,323 15,541 349

Table 12: Number of secondary deals (US)

Biotech Q3FY13 Q2FY13 Q1FY13 Q4FY12 Q3FY12 33 52 29 41 32 Med Devices 24 18 21 20 9

Q3FY12

Q4FY12

Q1FY13

Q2FY13
Biotech

Q3FY13

Medical Devices

16
Market performance

Yearly financing
Figure 11: Annual comparison of secondary financing inAustralia
2,500 71 2,000 Capital Raised (A$m)

Table 13: Number of Australian secondary raisings

Biotech FY13 FY12 FY11 71 99 154 107 87 Med Devices 27 39 43 39 41

1,500

FY10
2,081

1,000

FY09

500

95 271 246 FY09 FY10 383 FY11

55 294 FY12 Biotech

36 340 FY13

Medical Devices

Figure 12: Annual comparison of secondary financing in the US

25,000

Table 14: Number of US secondary raisings

Biotech FY13 114 125 66 122 48 Med Devices 63 43 121 57 24

20,000 Capital Raised (A$m)

1,543

FY12 FY11 FY10

15,000

10,000 2,400 5,000 781 719 3,330 0 FY09 FY10 5,974 5,578 5,250 1,279 FY11 FY12 Biotech

17,919

FY09

FY13

Medical Devices

PwC | BioForum: April 2013

17
Market performance

Top 10
Performers over past four quarters
CTE MVP NSP CDY UCM SRX NRT SUD ITD CLV 0% 50% 100% 150% 200% 250% 300% 350%

01 02 03 04 05 06 07 08 09 10

Cryosite Ltd

Return: 308% Closing price: $0.53 MCap: A$24.72m Return: 230% Closing price: $1.85 MCap: A$105.76m Return: 195% Closing price: $0.07 MCap: A$8.66m Return: 127% Closing price: $0.03 MCap: A$20.25m Return: 122% Closing price: $0.20 MCap: A$12.63m Return: 113% Closing price: $11.07 MCap: A$617.35m Return: 98% Closing price: $0.18 MCap: A$21.13m Return: 88% Closing price: $0.03 MCap: A$19.92m Return: 78% Closing price: $0.24 MCap: A$22.33m Return: 72% Closing price: $0.62 MCap: A$102.41m

Cryosites revenue rose 15.9% and its profit was up 60.2% compared to the prior half-year period. It has forecast profit in the range of $1.2-$1.4m for the year ended 30 June 2013.

Medical Developments International Ltd

Sales and EBIT both increased by 23% for the half-year ended 31 December 2012. A phase III trial of Penthrox was completed with all primary end pointsmet.

Nusep Ltd

The company recorded EBITDA of $428k for the half year ended 31 December 2012. It received accreditation in November 2012 from the Therapeutic Goods Administration for manufacture of in-vitro diagnostics medical devices and received an undisclosed legal settlement from NxGen Pharmaceuticals. Quest Diagnostics subsidiary Celera is soon to conduct a clinical evaluation of its lung cancer test, using Cellmids midkine diagnostics technology, after which Cellmid will be entitled to royalties. However, two significant share price increases in February 2013 prompted queries from the ASX.

Cellmid Ltd

Uscom Ltd

Half-year results showed a 41% reduction in net operating loss. The company raised $1.2m in H1FY13 and released a paper showing its technology significantly reduced sepsis deaths and hospital costs.

Sirtex Medical Ltd

Sirtex posted a 34th consecutive quarter of growth with revenue up 25% for the half-year ended 31 December 2012. Profit before tax increased 30% anddividends paid were up 43%. Sirtex was added to the ASX200 index earlyin2013.

Novogen Ltd

A Mazor Oncology study showed CS-6 was highly active against ovarian cancer stem cells.

Suda Ltd

Sudas revenues for the half year to 31 December 2012 increased 13.8% and it decreased its net loss after tax by 49.6% to $966k. Suda signed an option to acquire the oromucosal platform technology NovaMist from US drug company NovaDel Pharma.

ITL Ltd

Profit for the half-year period was up 36% to $1.47m and management bought back $3.4m in shares. The company completed a restructure involving the sale of its Malaysian distributor for $1.1m.

Clover Corporation Ltd

Clover increased revenues for the half-year period by 12.5% to $20.17m and profit 56.6% to $2.66m. A final dividend of 1.75c per share was declared for 2012, or $2.89m in total.

18
Market performance

Bottom 10
Performers over past four quarters
BXN AGX HTX IMC BNE IPD BPO PXS TIS BNC
-100% -90% -80% -70% -60% -50% -40% -30% -20% -10% 0%

10 09 08 07 06 05 04 03 02 01

Return: -62% Bioniche Life Sciences Inc Closing price: $0.23 MCap: A$23.99m Return: -64% Closing price: $0.160 MCap: A$37.67m Return: -75% Closing price: $0.33 MCap: A$101.82m Return: -75% Closing price: $0.00 MCap: A$2.87m Return: -82% Closing price: $0.09 MCap: A$15.96m Return: -85% Closing price: $0.002 MCap: A$1.71m Return: -86% Closing price: $0.00 MCap: A$2.49m Return: -89% Closing price: $0.001 MCap: A$.97m Return: -92% Closing price: $0.02 MCap: A$1.33m Return: -93% Closing price: $0.015 MCap: A$2.45m

Bioniche Life Sciences ended a phase III clinical trial of Urodocin due to slower than expected patient enrolment and discussions with the FDA concerning trial design.

Tissue Therapies Ltd

Tissue Therapies was advised that a European Commission Medical Devices Group meeting voted that VitroGro ECM should be regulated as a medicine and not a device, contrary to an independent assessors advice. The company will appeal any formal vote to change the classification but a failed appeal will mean a clinical trial will be necessary for the product to be sold in the EU. The committee advising the Food and Drug Administration made a negative recommendation regarding the use of Bronchitol for cystic fibrosis patients. The FDA has recommended another clinical trial.

Pharmaxis Ltd

Bioprospect Ltd

The companys loss for the half year ended 31 December 2012 decreased 86% to $733k after winding back its human health and skin care and agricultural and animal health projects.

Impedimed Ltd

Revenue for the half-year period was down 7% on the prior period compared with a 20% increase in worldwide lymphoedema revenue over the same period, although this was largely due to currency fluctuations. Net assets decreased 26% to $12.8m.

Bone Medical Ltd

The companys revenues effectively fell to zero with a net loss of $896k. Bone Medical is in a negative working capital position and will require further funding to continue R&D activities.

Immuron Ltd

The company announced a fully underwritten rights issue of $1.86m in addition to share issues of $2.4m in calendar 2012. Revenue decreased 23.8% to $160k and its net loss increased 13% to $1.48m.

Healthlinx Ltd

A heads of agreement with Mane DX involving the sale of HealthLinxs ovarian cancer assets expired in December following due diligence and financing issues. HealthLinx posted a net loss for the calendar year of $2.78m. CEO Nick Gatsios resigned inNovember. Agenix was advised that no further payments from a working capital facility would be made from December 2012. This required directors, senior management and some shareholders to provide unsecured funding. Agenix has secured funding with Baycrest Capital of up to $3m over three years.

Agenix Ltd

Bioxyne Ltd

The companys phase IIb COPD trial had disappointing results, revealing no statistically significant clinical benefit across the entire cohort of patients. However, clinical benefits were observed for patients under 65 years.

PwC | BioForum: April 2013

19

03
Announcements

20
Announcements

Australia partnerships
Company Biotechnology Biodiem Ltd (BDM) US Army Medical Research Institute of Infectious Diseases Biological weapons counter-measure N/A Partner Application Value (A$m) Comments Total 4 BioDiem renewed its material transfer agreement with the US Army Medical Research Institute of Infectious Diseases, including moving research to animal-based studies. The company terminated its exclusive global veterinary licence agreement with Trophogen. Cellmid signed an option agreement to supply its anti-midkine diagnostic antibodies for validation on Fujikuras latex platform. Cellmid will receive an initial fee and a further payment should Fujikura elect to exercise its licence option and also receive royalties on any future midkine diagnostic products sold by Fujikura. Circadians wholly owned subsidiary, Vegenics, has entered into a non-exclusive worldwide licence agreement with Santa Cruz Biotechnology to market antibodies to Circadians proprietary molecules VEGF-C, VEGF-D and VEGFR-3. Total 6 One World Lab Surface chemistry products N/A Anteo entered into a sales partnership program with One World Lab to provide Anteos Mix&Go surface chemistry products to academic and industry researchers. The company expanded an existing contract to supply SphygmoCor systems and clinical trial support services to a major international pharmaceutical company. The company entered into an agreement with CMS Medical to distribute EndoBarrier, its treatment for type II diabetes and/or obesity in Brazil, following regulatory approval. GI Dynamics and Medtronic agreed to collaborate on research focused on understanding how Medtronics EndoBarrier treatment affects continuous glucose levels and to evaluate hormonal changes in response to EndoBarrier respectively. Impedimed signed a three-year exclusive agreement with 3M Australia for the sale and co-marketing of L-Dex lymphoedema products in Australia and New Zealand. Medical Australia signed a five-year supply agreement with North Middlesex University Hospital to provide irrigation and IV administration sets for the facility.

Bioniche Life Sciences Inc (BNC) Cellmid Ltd (CDY)

Trophogen Inc. Fujikura Kasei Co Ltd

N/A Anti-midkine diagnostic antibodies

N/A N/A

Circadian Technologies Ltd (CIR)

Santa Cruz Biotechnology Inc

Cancer therapy

Unknown upfront payment and royalities

Medical Devices Anteo Diagnostics Ltd (ADO)

Atcor Medical Holdings Ltd (ACG)

Major internation pharmaceutical company CMS Medical

Non invasive blood pressure measurement Type II diabetes andobesity

US$0.8m

Gi Dynamics Inc (GID)

Unknown

Gi Dynamics Inc (GID)

GlaxoSmithKline andMedtronic

Type II diabetes andobesity

N/A

Impedimed Ltd (IPD)

3M Australia

Lymphoedema

Unknown

Medical Australia Ltd (MLA)

North Middlesex University Hospital

Irrigation and IV administration sets

N/A

PwC | BioForum: April 2013

21
Announcements

Company Pharma Novogen Ltd (NRT)

Partner

Application

Value (A$m)

Comments Total 4

The Ingham Institute

Cancer therapy

N/A

Novogen and the Ingham Institute signed an MOU to cooperate in developing a new class of super-benzopyran molecules as comprehensive anti-cancer drugs. The company signed an agreement with Bio-Link Australia, a specialist life sciences business development company, to commercialise a family of anti-inflammatory phylomer peptides for pharmaceutical use. Phylogica extended a collaboration with Janssen Biotech to discover, develop and commercialise new classes of peptide-drug conjugates from its phylomer drug discovery platform. Starpharma and Makhteshim Agan Group agreed on a program that will apply Priostar technology to crop protection formulations across Makhteshims crop protection product portfolio.

Phylogica Ltd (PYC)

Bio-Link Australia Pty Ltd

Anti-inflammatory Phylomer peptides

N/A

Phylogica Ltd (PYC)

Janssen Biotech Inc.

Peptide-drug candidates

N/A

Starpharma Holdings Ltd (SPL)

Makhteshim AganGroup

Crop protection

Unknown

Mergers, acquisitions and divestments

Dominant company Biotechnology Acuvax Limited (ACU) Biolife Science Ltd Takeover $5m Other company Type of deal Value (A$m) Comments Total 3 Acuvax signed a binding under which Biolife Science will purchase 100% of its issued capital. The new company will have a market value of about $11.3m and be renamed Biolife Science. The company completed the sale of its interest in Shandong Cord Blood Bank to Favorable Fort. NuSep sold its ProteoIQ software to Premier Biosoft. The company advised that the software was a non-core asset. Total 1 Enigma Therapeutics Ltd Takeover $2.25m NeuroDiscovery entered into an SPA with Enigma Therapeutics, a UK-based cancer company. Enigmas lead product is a targeted brachytherapy. Total 1 GlaxoSmithKline Ltd Asset acquisition $14m Mayne completed the acquisition of Kapanol and related assets in Australia from GSK.

Cordlife Limited (CBB) Nusep Limited (NSP) Medical Devices Neurodiscovery Limited (NDL)

Favorable Fort Ltd

Sale

US$8.65m

PREMIER Biosoft

Divesment

Unknown

Pharma Mayne Pharma Group Limited (MYX)

22
Announcements

Clinical trials
Company Phase I Biotron Limited (BIT) Drug BIT225 HIV infection Application Comments Total 2 The phase 1b/2a trial has demonstrated that Biotrons BIT225 targets HIV replication in monocyte cells in treated patients and significantly reduced virus levels in these cells. The company advised that it had achieved all end points of its phase I trial of its oxymorphone patch. Total 2 Congenital heart defectreapir Spinal fusion A phase II extension study showed patients whose congenital heart defect had been repaired with CardioCel showed no signs of calcium build-up. Trials using Mesoblasts allogeneic, or off-the-shelf, Mesenchymal Precursor Cells demonstrated rates of fusion success that were comparable to the gold standard bone autograft. Total 2 Metastatic colorectal cancer treatment Enrolment was completed for a trial with 390 metastatic colorectal cancer patients, comparing Alchemias HyACT technology in a combination with the standard chemotherapy drug irinotecan against irinotecan alone. Penthrox was shown to offer clinically significant pain reduction and to be a highly effective analgesic, with the primary end point and all secondary end points of the study met. Total 16 Aactinomycetes that produce plant growthhormones Congenital heart defectreapir Abdominal herniarepairs The company announced it had discovered actinomycetes that produce plant growth hormones and has commissioned further independent trials to test their performance. A joint study with the CSIRO showed CardioCel tissue patches were better in promoting stem cell survival and growth than gold-standard tissues now in surgical use. Allied announced positive results of a comparative study which used ADAPT-treated tissue as a bioprosthetic substitute for abdominal hernia repairs as well as pelvic floor reconstructions in an experimental model. It showed ADAPT-treated tissue was superior or equal to the comparative synthetic implant. Antisense agreed with Pharmaron, a contract research organisation in China, to conduct a chronic toxicology study to support a potential future phase IIb study of ATL1102 in multiple sclerosis patients. A post-hoc analysis of Bioxynes previous study HI-H005 confirmed benefits to patients in excess of 65 years of age. A proof of concept studys initial findings showed that BN006 reduces inflammation in the collagen-antibody induced arthritis model that the experiment used, and that the improvement increased with the dose of BN006. Calzadas AOD9604 peptide showed positive results in an animal model of osteoarthritis. Cellmid released positive data relating to a midkine antibody study in kidney disease. Anti-midkine antibodies reduced mortality rate and kidney damage in a mouse model of the disease. Clinical research was published which demonstrated a statistically significant decrease in mean HbA1c and total cholesterol levels over a one-year period in patients treated with GI Dynamics EndoBarrier therapy.

Phosphagenics Limited (POH) Phase II Allied Healthcare Group Ltd (AHZ) Mesoblast Limited (MSB)

TPM transdermal skinpathc CardioCel

Opiod delivery

Neofuse Mesenchymal Precursor Cells HA-Irinotecan

Phase III Alchemia Limited (ACL)

Medical Developments International Limited (MVP)

Penthrox

Acute pain

Pre-clinical and other Actinogen Limited (ACW)

N/A

Allied Healthcare Group Ltd (AHZ) Allied Healthcare Group Ltd (AHZ)

CardioCel

ADAPT

Antisense Therapeutics Limited (ANP)

ATL1102

Mutliple sclerosis

Bioxyne Ltd (BXN) Bone Medical Limited (BNE)

N/A BN006

Chronic obstructive pulmonary disease Treatment of musculoskeletal diseases Osteoarthiritis Anti-midkine antibodies

Calzada Limited (CZD) Cellmid Limited (CDY)

ADO9604 MK-Ab

Gi Dynamics Inc (GID)

EndoBarrier

Type II Diabetes andobesity

PwC | BioForum: April 2013

23
Announcements

Company Immuron Limited (IMC) Novogen Limited (NRT) Patrys Limited (PAB)

Drug IMM-529 CS-6 PAT-SM6

Application Prophylaxis for C.difficleinfection Ovarian cancer Anti cancer product

Comments Immuron released results showing IMM-529 is effective in preventing C.difficile symptoms in mice. A study conducted by Mazor Oncology showed CS-6 was highly active against ovarian cancer stem cells. A pre-clinical study showed PAT-SM6 to work in combination with existing multiple myeloma drugs and was highly effective in a multiple myeloma animal model The company presented new data demonstrating PBT2 can reduce damage to brain cells caused by the accumulation of the tau protein and prevent subsequent cognitive impairment. disease. PBT released key findings that PBT434 reduces the aggregation and accumulation of the key protein alphasynuclein in multiple transgenic animal models of Parkinsons disease. Independent data shows Uscoms guided treatment of sepsis and septic shock has significant life-saving and cost reduction benefits. An animal study showed that a dendrimer-based formulation of doxorubicin was substantially more efficacious in treating secondary tumours of breast cancer in lungs than the drug alone.

Prana Biotechnology Limited (PBT)

PBT2

Parkinsons disease

Prana Biotechnology Limited (PBT)

PBT434

Parkinsons disease

Uscom Limited (UCM)

Sepsis and septic shocktreatment Dendrimer based formulation of doxorubicin Breast cancer tumours

Starpharma Holdings Limited (SPL)

Regulatory
Company Biotechnology Acrux Limited (ACR) N/A Underarm administration of testosterone formulations Confirmed androgen deficiency Metastatic colorectal cancer treatment Mutliple sclerosis Product Application Comments Total 10 Acrux announced that the US patent office granted its application for a patent on the underarm administration of testosterone formulations. Acrux announced that the US patent office granted its application for a patent on the underarm administration of testosterone formulations. Alchemia was granted a patent for its proprietary drug HAIrinotecan, currently being evaluated in a 400-patient phase III trial. The US patent office has allowed Antisenses patent Methods for treating multiple sclerosis using antisense oligonucleotides, which extends coverage of the ATL1102 compound for the treatment of relapsing-remitting multiple sclerosis patients until 2029 with potential for extension to 2034. Antisenses technology partner Isis Pharmaceuticals received US FDA approval for Kunamro, an antisense drug with a similar platform chemistry to those in Antisenses pipeline.

Acrux Limited (ACR)

AXIRON

Alchemia Limited (ACL)

HA-Irinotecan

Antisense Therapeutics Limited (ANP)

ATL1102

Antisense Therapeutics Limited (ANP)

N/A

N/A

24
Announcements

Company Avita Medical Ltd (AVH)

Product N/A

Application N/A

Comments Avita Medical announced that it received formal notification that it completed an annual ISO Quality Recertification Audit with no non-conformances identified. The companys patent Methods and means for obtaining modified phenotypes has been allowed by the US Patent and Trademark Office. BioDiem announced the grant of a Chinese divisional patent, which expands protection of the companys antimicrobial compound BDM-I. The company advised that the European Patent Office indicated that it intends to grant the patent application entitled Pharmaceutical composition for vascular occlusive disease. Japans patent office accepted a key foundation patent application protecting Imugenes Linguet drug delivery technology. Total 1

Benitec Biopharma Limited (BLT) Biodiem Limited (BDM)

N/A

Sliencing DNA constructs Serious infection treatment Midkine expression prevention in blood vessel walls Drug delivery platform

BDM-I

Cellmid Limited (CDY)

N/A

Imugene Limited (IMU)

Linguet

Medical Devices Allied Healthcare Group Ltd (AHZ) Pharma Mesoblast Limited (MSB)

CardioCel N/A Drugs based on Mesenchymal Precursor Cell adult stem cell technologyplatform. Anti cancer fucntions Congenital heart defect reapir

Allied received its ISO 13485 certification, a key part of the European CE approval process. Total 8 Mesoblast announced that it has been granted three key new patents by the US patent authority and Chinas Intellectual Property Office.

Novogen Limited (NRT)

N/A

Novogen announced it has filed a provisional patent application covering technology associated with the manufacture and use of a new class of molecules referred to as super-benzopyrans, which display a range of anti-cancer functions. The company received a negative recommendation from a committee advising the FDA on the use of Bronchitol for cystic fibrosis patients. The FDA denied Pharmaxis approval to market Bronchitol in the US and has recommended an additional clinical trial. A core patent was granted for a broad range of phylomer peptide compound libraries. The Spanish Agency of Drugs and Medical Devices granted pSivida approval to market Iluvien for the treatment of vision impairment associated with chronic diabetic macular oedema considered insufficiently responsive to available therapies. QRX said the FDA has set 26 August 2013 as the date for action on its new drug application for Moxduo. The British Standards Institute advised Tissue Therapies that a European Commission Medical Devices Group meeting voted that VitroGro ECM should be regulated as a medicine and not a device, contrary to advice from an independent assessor. The company will appeal any formal vote to change the classification but a failed appeal will mean a clinical trial will be necessary to sell the product in the EU.

Pharmaxis Ltd (PXS)

Bronchitol

Cystic fybrosis

Pharmaxis Ltd (PXS) Phylogica Limited (PYC) Psivida Corp. (PVA)

Bronchitol N/A ILUVIEN

Cystic fybrosis Phylmer library Vision impairment

Qrxpharma Limited (QRX) Tissue Therapies Limited (TIS)

Moxduo VitroGro ECM

Pain relief

PwC | BioForum: April 2013

25
Announcements

Other news
Company Biotechnology Alchemia Limited (ACL) Medical Devices Resmed Inc (RMD) N/A N/A N/A N/A Product Application Comments Total 1 Former CFO Charles Walker became the CEO of the company after Dr Peter Smith stepped down. Total 4 Michael Farrell, previously senior vice-president of the companys sleep business unit, was appointed CEO. Mr Farrell is the son of ResMed founder Peter Farrell. Lifescan advised UBI that it had initiated a voluntary recall of its OneTouch Verio meters. The test strips which UBI manufactures were not affected. The company advised this would have some effect, but not materially, on strip sales. EndoBarrier Therapy, GI Dynamics non-surgical, nonpharmaceutical treatment for type II diabetes and obesity, was selected as BioSpectrum Asias Product of the Year 2013. Sunshine Heart has advised that it intends to delist from the Australian Securities Exchange in the first half of the 2013 calendar year. Total 1 N/A Living Cell Technologies was awarded the 2013 Janssen Industry Excellence Award for Company of the Year, in recognition of innovative research, pipeline development and portfolio strength.

Universal Biosensors, Inc. (UBI)

OneTouch Verio Strips

Glucose monitoring

Gi Dynamics Inc (GID)

EndoBarrier

Type II Diabetes

Sunshine Heart, Inc. (SHC) Pharma Living Cell Technologies Limited (LCT)

N/A

N/A

N/A

26

04
Appendix

PwC | BioForum: April 2013

27

Companies in the PwC Life Sciences Index

Closing MCap (A$m) Medical device AMT AHZ ADO ACG BRC CLV COH CGS CMP CYC ELX GBI GID HIN IPD ISN ITD LBT MLA MGZ MDV MDG NAN NDL OBJ OIL OSP RMD RVA SFP SOM SUD SHC TDX UNS UBI UCM Advanced Surgical Design & Manufacture Limited Allied Healthcare Group Ltd Anteo Diagnostics Limited Atcor Medical Holdings Limited Brain Resource Company Limited (The) Clover Corporation Limited Cochlear Limited Cogstate Ltd Compumedics Limited Cyclopharm Limited Ellex Medical Lasers Limited Genera Biosystems Limited Gi Dynamics Inc Heartware International, Inc Impedimed Limited Isonea Limited ITL Limited Labtech Systems Limited Medical Australia Limited Medigard Limited Medivac Limited Medtech Global Limited Nanosonics Limited Neurodiscovery Limited OBJ Limited Optiscan Imaging Limited Osprey Medical Inc Resmed Inc Reva Medical Safety Medical Products Limited Somnomed Limited Suda Limited Sunshine Heart, Inc. Tyrian Diagnostics Limited Unilife Corporation Universal Biosensors, Inc. Uscom Limited 5.804 30.020 44.660 14.021 24.712 102.413 3881.636 29.872 9.071 6.975 16.133 7.894 183.249 1371.928 15.956 17.472 22.332 4.671 4.085 1.365 3.238 3.509 125.558 3.686 18.338 15.398 49.626 6256.324 170.793 1.982 41.556 19.916 57.059 1.022 188.664 120.032 12.634 0% 38% -8% 33% 6% 7% -14% 18% -24% -29% 0% -21% 16% 9% 10% 14% 17% -18% 13% -6% -17% 0% -1% 52% -32% 8% 19% 11% 4% -38% 18% -6% -9% 0% 1% -25% 0% -56% 0% -28% 18% 2% 72% 10% 44% -25% -33% 0% -50% -39% 33% -82% -14% 78% -11% -36% 0% -44% -30% -11% 19% -38% -30% 20% 45% -20% -29% 12% 88% -12% 0% -44% -7% 122% Quarterly return Annual return

Companies in the PwC Life Sciences Index

28
Companies in the PwC Life Sciences Index

Closing MCap (A$m) Pharma and Biotech ACR ACW ACU AGX ACL ALT ANP AVX AVH BLT BDM BNC BNO BPO BIT BXN BNE CZD CDY CIR CUV CBB CTE CSL GTG HTX HCT IMC IMU IDT IVX LCT MYX MVP MSB NLS NEU NRT NSP PAB Acrux Limited Actinogen Limited Acuvax Limited Agenix Limited Alchemia Limited Analytica Limited Antisense Therapeutics Limited Avexa Limited Avita Medical Ltd Benitec Biopharma Limited Biodiem Limited Bioniche Life Sciences Inc Bionomics Limited Bioprospect Limited Biotron Limited Bioxyne Ltd Bone Medical Limited Calzada Limited Cellmid Limited Circadian Technologies Limited Clinuvel Pharmaceuticals Limited Cordlife Limited Cryosite Limited CSL Limited Genetic Technologies Limited Healthlinx Limited Holista Colltech Limited Immuron Limited Imugene Limited Institute Of Drug Technology Australia Limited Invion Limited Living Cell Technologies Limited Mayne Pharma Group Limited Medical Developments International Limited Mesoblast Limited Narhex Life Sciences Limited Neuren Pharmaceuticals Limited Novogen Limited Nusep Limited Patrys Limited 646.104 1.875 2.457 1.326 103.910 12.320 14.380 14.411 37.411 14.388 5.116 23.988 156.041 2.873 26.254 2.446 1.714 17.332 20.255 13.131 84.560 8.980 24.719 29459.262 35.660 0.969 8.424 2.485 3.081 10.582 17.304 17.136 270.219 105.756 1936.090 2.581 40.215 21.133 8.656 15.728

Quarterly return

Annual return

36% 110% 0% -1% -14% 0% -9% -11% -4% -7% -14% -28% 6% 0% -15% 7% 0% 6% 127% -23% 31% 16% 39% 10% 6% -50% -11% -40% -18% 11% -21% -4% 60% 11% 16% -14% -3% 9% -13% -18%

-3% 0% 0% -92% -35% -8% -44% -45% -52% -28% -60% -62% -21% -75% -32% -93% -85% -14% 127% -45% 34% -5% 308% 65% -18% -89% -43% -86% 13% -21% -46% -40% 60% 230% -22% -33% 42% 98% 195% -9%

PwC | BioForum: April 2013

29
Companies in the PwC Life Sciences Index

Closing MCap (A$m) Pharma and Biotech (continued) PXS POH PYC PBT PRR PBP PGL PVA QRX SIE SRX SPL TEO TIS VLA Pharmaxis Ltd Phosphagenics Limited Phylogica Limited Prana Biotechnology Limited Prima Biomed Ltd Probiotec Limited Progen Pharmaceuticals Limited. Psivida Corp. Qrxpharma Limited Scigen Limited Sirtex Medical Limited Starpharma Holdings Limited Telesso Technologies Limited Tissue Therapies Limited Viralytics Limited 101.819 132.628 10.256 73.991 102.342 19.050 6.177 51.719 169.234 22.091 617.353 307.778 0.602 37.668 26.181

Quarterly return

Annual return

-73% -10% -8% 2% -13% -19% -17% 71% 30% 0% -16% -17% 0% -48% -10%

-75% -45% -51% 39% -60% 15% 25% 14% -32% -11% 113% -37% -41% -64% -20%

30

05
Methodology

PwC | BioForum: April 2013

31
Methodology

Methodology
Sources
BioForum draws on historical data from the followingsources: Bloomberg Connect 4 The Australian Stock Exchange Company websites PwC Global Pharma and Life Science QuarterlyNewsbriefs 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. The Life Sciences index is designed as a measure of the health and performance of the industry, not as a measure of returns to investors.

Market performance
The Australian life sciences sectors 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

Top and bottom performers

Annual data on these companies is sourced from Bloomberg each quarter. Company announcements are sourced from company websites.

IPO and secondary finance markets

IPO and secondary financing data is sourced from the Connect 4 databases health-care industry category. Weinclude 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 Thompson Reuters.

Announcements
These are from companies listed on the PwC Life Sciences Index only. They are sourced from Connect 4 using the health-care industry category. Weinclude announcements on partnerships, mergers and acquisitions and divestments, clinical results, regulatory activity and other information. 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

32

06
Contacts

PwC | BioForum: April 2013

33

PwC Australia Life Sciences and Innovation Practice contacts

Australian Industry Leaders Life Sciences
PwC Australia Life Sciences
Craig Lawn P: +612 8266 0147 E: craig.s.lawn@au.pwc.com Michelle Chiang P: +612 8266 7575 E: michelle.w.chiang@au.pwc.com Manoj Santiago P: +612 8266 4494 E: manoj.santiago@au.pwc.com

Tax and Legal

Craig Lawn P: +612 8266 0147 E: craig.s.lawn@au.pwc.com Sandra Mason P: +612 8266 0470 E: sandra.mason@au.pwc.com Stephanie Fabian P: +612 4925 1278 E: stephanie.fabian@au.pwc.com

National Pharmaceuticals Leader

John Cannings P: +612 8266 6410 E: john.cannings@au.pwc.com

Assurance
Manoj Santiago P: +612 8266 4494 E: manoj.santiago@au.pwc.com Michelle Chiang P: +612 8266 7575 E: michelle.w.chiang@au.pwc.com

34
Acknowledgements

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

Research, analysis and writing:

Max Oke, Consultant

PwC Life Sciences Practice contributors:

Craig Lawn, Partner, National Life Sciences IndustryLeader Manoj Santiago, Partner, Sydney Life Sciences Industry Leader Michelle Chiang, Partner, Sydney Life Sciences Industry Leader

PwC | BioForum: April 2013

www.pwc.com.au/bioforum

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.

 2013 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. PricewaterhouseCoopers 201 Sussex Street Sydney NSW 2000 +61 2 8266 0000

WL12700225