AGM Notes, page-6

Starpharma AGM Summary (Part 3)

SHAREHOLDER QUESTIONS:

DEP® docetaxel question was asked by a shareholder.

Q: Will the timeframes in future for Ph 2 etc be quicker than the Ph 1 - SH thought that the Ph 1 trial seemed to go on forever?

A: Jackie said yes ... and that this why we are using UK sites with larger population and patients. She added that in comparison, in the UK sites have 300-400 phase 1 patients a year (i.e. Larger Numbers than other countries /sites) .... in Australia we are lucky in some instances to have 20 or 30 patients to access in a phase 1 trial.

This was the key factor in their decision to undertake trials in the UK.

BV question was asked.

Q: Will Vivagel be distributed the same way in all countries. ie. Over the Counter (OTC) or Prescription?

A: No

It is believed that in Europe the product will be available OTC. Some markets will be a prescription only medication. The USA will definitely be a prescription. Jackie re-iterated previous comments that it is good for pricing if USA is first with script as it sets a higher price to work from in other regions.

Q: Do they believe there will be a pricing barrier?

A: No said Jackie.

Q: What benchmark do they anticipate in relation to profits and Cost of Goods... Margins estimates etc ?

A: As SPL is still negotiating terms / deals it must remain commercial in confidence at this stage.

I put up one of our questions from HC.... I thought many were already answered in presentations

Q: Although I understand that SPL cannot disclose the details of the companies involved in the two 'confidential' oncology items, will milestone payments for these items be announced in an ASX announcement when they are triggered?

A: Currently SPL are getting paid research fees for both of these items, but once milestones are actually achieved we will not only get paid the agreed milestone payments, but the companies involved in both of these candidates will be announced in conjunction with the announcement of the milestone payments.

(Good to know as I cannot see that these are far away - again IMO)

A Shareholder complained about poor performance re Ansell / Condoms and then went on to ask a questions re: future partnerships as he was concerned and did not want to be at the next AGM hearing that the Aspen deal had similar flaws in 12 months time.

Q: Will SPL Management take responsibility regarding the future partnerships given the Ansell deal did not really work out for the best? What are they doing to ensure this doesn't reoccur? (That wasn't the exact wording and he was sitting in my row so I apologise - but that was the gist)

A: Jackie said Starpharma do take responsibility for the Ansell deal, and re-iterated that the new company would be good for Condoms. She further added that Condoms were never going to be 'blue sky' (I think that shareholder mentioned this in his summary and subsequent question) and that Vivagel and DEP have always been the blue sky.

Shareholder mentioned that AZ milestones are higher than (I think) current MC ... He then went on to ask a questions about TO....

Q: Is SPL worried given the undervalued SP that we may be subject to a TO for a small premium ? Is there anything SPL can do to prevent this?

A: Jackie said that she also believed SPL SP is way undervalued, but nevertheless a TO approach for a small premium is on the radar of BoD and Management at all times. It is something that 'internally' they are making provisions to prevent this the best way they can and again reiterated that it was something discussed on a regular basis. Have internal strategies to perhaps prevent an opportunistic TO.

IMO the BoD and Management have a strong stake in SPL ... that combined with a strongly held Top 20 would prevent this from happening ... well at least for a small premium anyway ?

Q: Condom antiviral question re science and different applications / use of this application? Are there other indications being looked at? It was very scientific question but that was the gist.

A: Jackie stated that it was full on bacterial and prevented against HIV already. She went on to say that this application is being tested Viral conjunctivitis and other uses, but emphasised that SPL would not look at attempting to mimic this 'antiviral' type agent in the form of a pill / drug to treat such illnesses as HIV.

Q: How are we managing / protecting our Intellectual Property?

A: IP strategy is to file new patents whenever we discover something new. We undertake a patent application before we tell market of the new item to ensure we are protected. Further points:-

I/. We also have an in-house Patent Attorney.

II/. Jackie went on to say that "We do get royalties on non patent items eg. Manufacturing" as well.

III/. AZ have also filed several patents.

It was also mentioned that Starpharma is the only company that has taken a dendrimer into clinical trials.

Q: Would SPL try and run DEP® docetaxel on its own after a successful ph 2 trial? i.e. to phase 3 and commercialisation?

A: Jackie stated that late stage clinical trials are better handled by larger companies (e.g AstraZeneca) due to costs and infrastructure, etc etc

The Chairman made a comment about the Live webcasting of AGM question, which has been sent in by numerous people - chairman said no (too expensive.

Meeting closed and I got to shake Jackie's hand and congratulate her on her presentation and had to rush off.... Hope this helps you all ... best I could do as I did ask about recording on my phone and received a 'NO' that is not allowed ...

My apologies if I missed anything or for minor anomalies, but I did what I could.

We came away from the meeting very enthusiastic to say the least ... GLTAH