Date Acknowledgement; Special thanks to the State Government of Victoria and the City

of Melbourne and Canaccord Genuity for provision of information.

Japan-Victoria Business Forum

Opportunities in Health and Life Sciences

Katsumi Maruyama, V2V Pty Ltd

Melbourne, 25 August 2015

Australia is a top location for biotechnology

• Australia is ranked 4th in the world as a location for biotechnology (Source: Scientific American Worldview

Scorecard 2014)

• Over 100 companies listed on ASX, with

combined market capitalisation over $73 billions. • Australia one of the most attractive countries in

which to conduct life science R&D. • KPMG ranked Australia as #1 in the national

R&D tax category. • Non-capped 43.5% tax refund available for

companies with turnover of less than A$20 million.

Biotech + Pharmaceutical Industry

Australian Biotech Sector - Snapshot

2 Companies with MCap > $1B (SRX, MSB

excluding CSL, RMD, COH)

15 Companies with MCap $100M-$1B

8 Companies with Mcap $50M - $100M

Top 10 Listed Lifescience companies

Company Mcap $m Principal Activities

CSL 43,200 Vaccines and human plasma fractions

Resmed 13,056 Diagnostic and treatment of sleep disorder

Cochlear 5,168 Cochlear hearing implants

Sirtex Medical 1,978 Radioactive therapies for liver cancers

Mesoblast 1,178 Regenerative medicine using adult MSCs

Sigma 974 Pharmaceutical manufacturing and wholesale

Blackmore 940 Vitamins and mineral supplements

API 886 Pharmaceutical wholesaler

Mayne Pharma 750 Manufacturers, developing generic drugs

Unilife 680 Retractable syringes

Top 11-20 Listed Lifescience companies

Company Mcap $m Principal Activities

Nanosonics 535 Disinfection technology for ultrasound probe

Impedimed 249 Diagnosis of lymphedema

Bionomics 194 Drug developer for CNS and cancers, gene

diagnostics for epilepsy

Reva Medical 191 Bioresorbable coronary stent

Neuren Pharma 151 Drug developer for neuroprotective therapeutics

pSivida 149 DDS for ophthalmic applications

Acrux 143 Transdermal drug Axiron, Evamist and Recuvyra

Somnomed 140 Oral device for sleep apnea and snoring

Starpharma 140 Developer of pharmaceutical and healthcare

applications using dendrimer

Clinuvel Pharma 140 Developer of Photo-protective agent

IPO Market Quieter Than US

Aug 2015 - $35M IPO

June 2015 - $40M IPO

April 2015 - $3.1M IPO

May 2015 - $4.0M IPO

Feb 2014 - $10M dual ASX/TSX IPO

Dec 2013 - $10M IPO

Dec 2013 - $18.5M IPO

Several High-Value Offshore Deals

May 2015 – Boehringer Ingelheim acquires Phase-1 anti-inflammatory drug from PXS for A$39M upfront and potential milestone payments totalling A$750M

June 2014 – Merck pays US$20M and potential for $506M in milestone payments for preclinical Alzheimer’s program

May 2015 – private company acquired for US$75M and potential milestones of US$480M for Phase-1 fibrosis drug

June 2015 – private company acquired by Novartis for US$200M plus undisclosed milestones for Phase-2 pain drug

Medical Device Industry

Cochlear – solid growth over several years

Leading the world in cochlear implants and other devices for hearing

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

$100.00

De

c-9

5

De

c-9

6

De

c-9

7

De

c-9

8

De

c-9

9

De

c-0

0

De

c-0

1

De

c-0

2

De

c-0

3

De

c-0

4

De

c-0

5

De

c-0

6

De

c-0

7

De

c-0

8

De

c-0

9

De

c-1

0

De

c-1

1

De

c-1

2

De

c-1

3

De

c-1

4

Cochlear

MCap $5.2B, H1 FY15 revenue $441M (+15%cc), EPS 125.3cps

Resmed – significant share price

performance since 2011

Leading the world in the development of products for the treatment of sleep apnea

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

No

v-9

9

No

v-0

0

No

v-0

1

No

v-0

2

No

v-0

3

No

v-0

4

No

v-0

5

No

v-0

6

No

v-0

7

No

v-0

8

No

v-0

9

No

v-1

0

No

v-1

1

No

v-1

2

No

v-1

3

No

v-1

4

Resmed

MCap $12.1B, Q1 FY15 revenue US$422M (+15%cc), EPS US0.65cps

MedTech Has Outperformed In The Last

Two Years

Relative performance of MedTech vs Drug Developers and the Small Ords Index

500

750

1000

1250

1500

1750

2000

22500

1-J

an-1

3

01

-Fe

b-1

3

01

-Mar

-13

01

-Ap

r-1

3

01

-May

-13

01

-Ju

n-1

3

01

-Ju

l-1

3

01

-Au

g-1

3

01

-Se

p-1

3

01

-Oct

-13

01

-No

v-1

3

01

-De

c-1

3

01

-Jan

-14

01

-Fe

b-1

4

01

-Mar

-14

01

-Ap

r-1

4

01

-May

-14

01

-Ju

n-1

4

01

-Ju

l-1

4

01

-Au

g-1

4

01

-Se

p-1

4

01

-Oct

-14

01

-No

v-1

4

01

-De

c-1

4

01

-Jan

-15

01

-Fe

b-1

5

Rel

ativ

e Pe

rfo

rman

ce s

ince

1 J

anu

ary

20

13

MedTech Drugs XJO

MedTech Has Delivered Strong Returns in

Last 12 Months

Relative performance of MedTech vs Drug Developers and the Small Ords Index

750

875

1000

1125

1250

1375

15000

1-J

an-1

4

01

-Fe

b-1

4

01

-Mar

-14

01

-Ap

r-1

4

01

-May

-14

01

-Ju

n-1

4

01

-Ju

l-1

4

01

-Au

g-1

4

01

-Se

p-1

4

01

-Oct

-14

01

-No

v-1

4

01

-De

c-1

4

01

-Jan

-15

01

-Fe

b-1

5

Rel

ativ

e Pe

rfo

rman

ce s

ince

1 J

anu

ary

20

14

MedTech Drugs XJO

Emerging Australian Medtech Companies

Australian Medtech companies have delivered strong performance over the past 2 years

Code Company MCap

($M)

Av. Daily Val

($'000)

Δ Price

1 Jan-13

Δ Price

1 Jan-14

Av. Daily T/O

($'000)

SRX Sirtex $2,004 $8,802 170% 202% $8,802

NAN Nanosonics $465 $684 263% 110% $684

IPD Impedimed $261 $441 1043% 273% $441

RVA Reva $174 $22 -2% 8% $22

SOM Somnomed $156 $183 277% 179% $183

OBJ OBJ $141 $610 350% 159% $610

GID GI Dynamics $134 $116 -48% -62% $116

OSP Osprey $74 $50 43% -12% $50

UBI Universal Bio $67 $41 -58% -17% $41

DVL dorsaVi $44 $32 N/a -13% $32

ELX Ellex Lasers $36 $19 74% -8% $19

SVA Simavita $34 $18 N/a 12% $18

ALT Analytica $23 $40 12% -9% $40

CMP Compumedics $23 $9 82% 57% $9

OIL Optiscan $19 $301 2% 67% $301

ACG Atcor $18 $9 50% -38% $9

ISN Isonea $17 $22 -14% -82% $22

UCM USCom $16 $5 0% 43% $5

Regenerative Sector

Regenerative Medicine Sector

Company State Mcap

($m)

Principal Activities

Mesoblast VIC 1,178 Regenerative medicine using adult MSCs

Cynata

Therapeutics

VIC 60 Stell cell company to produce unlimited

uniform MSCs from a single donor.

Cell

Therapies

VIC Private Specialist CMO for cells and tissues as

well as developer of cell therapy products.

Orthocell

WA 32 Regenerative medicine products for tendon

cells (ATI) and cartilage (ACI), and scaffold

CELGRO

Tissue

Therapies

QLD 32 Developing the VitroGro product for ulcer

and wound healing

Regeneus NSW 29 Using adipose-derived cells to develop cell

therapies for humans and animals

Avita Medical WA 21 Market Recell, skin repair products

Lifescience Sector in Victoria

Life Science Sector in Victoria

Victoria is the capital of Australia’s life science industry

with A$10 billion annual sales in 2013, a 13% increase

from previous year.

There are 170 life science companies in Victoria

representing more than 50% of Australia’s total life

sciences industry.

Victoria receives over 45% of national medical

research funding

Most of the world’s leading biotech companies have

significant operations in Melbourne including Hospira, GSK, CSL, ThermoFisher,

Leica Biosystems, Fresenius Kabi and Amgen

Life Science Companies in Victoria

CSL: Australia’s largest biotech company. Developed H1N1

influenza vaccine.

Mesoblast: Adult stem cells for orthopedic application, heart repair,

disk repair and diabetes

Acrux: Transdermal drug Axiron, Evamist and Recuvyra

Starpharma: Developer of pharmaceutical and healthcare applications

using dendrimer

Clinuvel Pharmaceuticals: Developer of Photo-protective agent,

marketed in EU

SRX Global – Australian market leader in highly specialised

electronics manufacturing and medical devices assembly.

Fresenius Kabi – German multi-national healthcare company,

establishing a new manufacturing facility in Victoria to produce I.V.

bags.

Some of BioMedVic’s world class Members

Walter and Eliza Hall Institute (WEHI) of Medical Research

• celebrating 100 years of immunology research in 2015

The University of Melbourne

Monash University

Baker IDI Heart and Diabetes Institute

• Australia’s leading research institute for cardiovascular disease & diabetes

The Florey Institute of Neuroscience & Mental Health

• one of the world’s top 10 neuroscience institutes

The Royal Melbourne Hospital

• 165 years of care, teaching and translational research

Murdoch Childrens Research Institute

• one of the four largest paediatric research institutes in the world

both in the world Top 20

Biomedicine rankings

Streamlined regulatory system for clinical trials

• Clinical Trial Notification (CTN) scheme which enables rapid

initiation of clinical trials • This is an acknowledgement by the Therapeutics Goods Administration

(TGA) within 10-15 days, following ethics approval. • About 70% of applications approved within the 30 working day

benchmark.

• Centralised clinical trial agreement templates • reducing timelines associated with legal review of such documents.

• Specialised first-in-human capabilities with early phase trials

accounting for almost 40% of all trials.

• Particular strengths in oncology and neuroscience trials, with

strong paediatric trial capabilities.

• Case Study: Amgen •In 2013, Amgen Australia conducted 76 different clinical studies at 368 sites,

involving about 1,547 patients trialing Amgen’s innovative medicines.

Date

Thank you

Katsumi Maruyama

Director, V2V Pty Ltd

Email: maruyama@v2v.com.au

Level 1, 459 Toorak Road

Toorak, Vic 3142 Australia