Ann: AGM Chairman's Address and CEO Presentation, page-19

Here are my notes for those who couldn't get there:
Met Ross outside and he seemed particularly upbeat.
Probably about 40 or so in the audience.
Ross referenced a shareholder comment and I am pretty sure he referenced a hotcopper comment. As such g’day Ross and well done today!
The presentation was pretty much as was sent out so I won’t repeat what you can read for yourself. The impression I got was that the main message was; we inherited a mess, it is now pretty much sorted, only legacy issue remaining is Mylan, fiscally responsible, 12 months cash and reoccurring revenue of one million plus.
Questions
(Referencing one of the slides) What is meant by drug shortage and sterile?

• Products removed by companies because of contaminations causing the company to often “pull” a product
• TPM allows a clearer visibility of the liquid which means you can see the contamination.
• Hence TPM is advantageous to these products and solving drug shortage.

Explain Propofol and its uses.

• Inducing agent.
• Referred to as mother’s milk as it is a white substance
• Has many problems with contamination which TPM solves
• Ross went through the list of what the other drugs did on a slide some were antibiotics, some anti-cancer. The anti-clotting one was interesting as no company has made a stable injection. I wasn’t sure whether Ross was referring to TPM as having achieved that or trying to achieve that

Mylan Arbitration. Why was it done in Singapore and is it enforceable?

• Often in contracts you look for a neutral site to have arbitration. When the deal was signed Singapore was agreed upon. So, it was predetermined.
• Yes, it is enforceable. POH is hoping not to spend more money. It is recognisable in many countries. (I wasn’t totally convinced by this argument)
• No appeal other than if there has been clear error of law

IF a negative outcome for Mylan would they try to negotiate then?

• Ross (rightly) shut this down. There are many scenarios. POH is not presuming anything. We just have to wait.

The state of the company. If Mylan fails do we have the revenue to survive? Could we have more background on our future should we lose?

• 12 months of cash
• Revenue is increasing
• We have been focussed on the fundamentals
• Very aware of the risks
• Costs have been greatly reduced we are as lean as possible
• Focussed on building company revenue
• Animal health has been a great success
• Injectables are a quick pathway to partnering opportunities
• There is value in partnering, there is value in sales and also value in manufacturing the TPM

A discussion about Animal feed which I missed

Negative result of the Mylan arbitration. How negative can it get for POH?

• There is no counter claim so the worst it could get is costs and then a percentage of it
• We have spent over 5 million so it would be much less that that
• However, we are extremely confident in the claim

My favourite questions. Started with context about an online forum the questioner was involved in. Mentioned that there is one contributor who just won’t let go of their idea that TPGS is better than TPM and why wouldn’t Terumo just move to that. (There was a collective eyeroll). Also asked about Propofol and how far away are we?

• TPGS – it has similar letters!!! Similar vitamin E. There are multiple solubilizes out there but TPM has a far better safety profile.
• Propofol is going ahead with Terumo. They are currently in the toxicology stage and then short clinical phase after that

Oxymorphone patch. What is the difference between one day and three day? Why did it fail?

• The difference between the two is how long it delivers and how much drug it delivers. You want the drug to be exhausted at the end of the timeframe.
• The product didn’t fail.
• Confident that it will meet other markets requirements just not Terumo for Japan

Any New directors?

• After Mylan arbitration is settled there may well be.