aegis report finally on the radar

pSivida (PSD)Aegis has been commissioned by pSivida to include it in
the March 2008Emerging Companies Review and has received a fee for its
inclusion.Company OverviewPSD is a global developer of drug-delivery
products in the healthcare sector, initially inophthalmology and
oncology. PSD has revenues from marketed products and diversified
late-stageportfolio. PSD has evaluation agreements with large global
pharmaceutical companies. Pfizer, PSD'sstrategic partner, recently
licensed Medidur for ophthalmic applications. QinetiQ (European
R&Dinstitution) is PSD's second-largest shareholder. PSD is listed on
NASDAQ, Australian and Frankfurtstock exchanges.StrategyPSD combines
internal product development and out-licensing of technology. PSD has
two FDA-approved and marketed intravitreal drug implants for treatment
of infectious sight-threatening eyediseases, Vitrasert and Retisert,
manufactured and sold by Bausch & Lomb. Retisert is approved forUS
Medicare rebate of 106% of wholesale price. Medidur is in Phase III
clinical trials. PSD isdeveloping lead oncology product BrachySil,
based on PSD's BioSilicon technology, for treatingpancreatic
cancer.Aegis CommentsOutlook: PSD's ophthalmic drug-delivery platform
has two US-approved products, Vitrasert andRetisert, with two products
in late-stage trials: Medidur (in Phase III for diabetic macular
oedema)and Mifepristone (in Phase II for raised intraocular pressure).
PSD is working with Pfizer on Medidurfor ophthalmic applications.
PSD's BioSilicon drug-delivery technology is in Phase II cancer
trials.PSD has sold pSiNutria to Intrinsiq for US$1.2M plus minimum
royalties of US$4M over six years.Risk: PSD has a later-stage research
pipeline, close big pharma ties, including a major licensingdeal with
Pfizer, a large IP portfolio and FDA approval experience. Chairman Dr
David Mazzo has bigpharma experience. With its 10% equity holding,
Pfizer is PSD's largest shareholder. PSD endedDec-07 with A$11.2M in
cash, which, together with expected inflows, we estimate will last
around twoquarters. Cash reserves and cash burn rate remain a key risk
for the company.Share Price Catalyst: In Jan-08 PSD announced positive
results in the Phase IIA BrachySil trial forinoperable pancreatic
cancer. In Oct-07 the Safety Board endorsed continuation of the
pivotal PhaseIII Medidur trial. In Apr-07 PSD signed an exclusive
worldwide collaboration and licensing agreementwith Pfizer for PSD's
drug-delivery technologies for ophthalmic uses. Under the deal, PSD
couldreceive up to US$153.5M in milestone payments. Pfizer has made an
US$11.5M equity investmentin PSD.KEY STATISTICSCOMPANY
CONTACTPrice:$0.10Price as at:19-May-08Market Cap ($M):76.8Equiv.
Shares (M):731.5% All Ords:0.0012Mth Range ($):0.06 - 0.19Turnover ($M
pa):31.2Index:N/ASector:Health
CareIndustryGroup:Pharmaceuticals,Biotechnology &
LifeSciencesIndustry:Life Sciences Tools &ServicesSubIndustry:Life
Sciences Tools &ServicesBrian LeedmanVP, Investor
[email protected] 8 9226 5099www.psivida.com13 15 19Aegis
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