Ann: Neuren 2011 Annual Report , page-6

from the report Neuren has achieved a lot in the past year and the next 12months will be the company maker imo.

"Neuren again made excellent progress in the development of our key assets in 2011. Foremost among the
Company’s accomplishments were securing our financial position through 2013 and significant progress in
diversification of the NNZ-2566 franchise".

Major milestones included:

• Raising NZ$11 million in new capital through a rights issue and placement of shares, adding two new cornerstone investors and closing the year with cash of NZ$9.8m

• Retiring all outstanding convertible notes and terminating the funding agreement with SpringTree Special Opportunities Fund

• Completing Cohorts 1 and 2 of the Phase II trial of NNZ-2566 in moderate to severe traumatic brain
injury
• Obtaining FDA approval for implementation of Exception from Informed Consent in the NNZ-2566
Phase II trial
• Completing preclinical and manufacturing development for the NNZ-2566 oral formulation

• Receiving FDA approval for a new IND to test an oral formulation of NNZ-2566 in patients with mild TBI or concussion

• Advancing the NNZ-2566 Rett Syndrome program through collaborations with leading experts and academic partners.

• Filing an application with the FDA for Orphan Disease designation for NNZ-2566 in Rett Syndrome

• Developing and submitting protocols and supporting documentation for a pre-IND meeting with the FDA to seek agreement for a Phase II trial in Rett Syndrome



Interesting that one of the cornerstone investors is holding its shares in a Super Fund. They view Neu as a blue chip investment.

Langley Alexander Walker ,Auckland Trust Company Limited < Second Pacific Master Superannuation Fund> 228,322,986 19.75%

Another major positive announced in the report is the substantial lower mortality rate comparable to other similar trials. Is this statement a direct reflection on the likely hood of Success of NNZ-2566.

"To date, NNZ-2566 appears to be well-tolerated. The serious adverse events (SAEs) reported among study subjects have been typical for critically injured patients and the mortality rate is substantially below that reported in comparable trials."

Substantial Update to IP in the past year, All this adds to Neurens Value.


Intellectual Property

"From the beginning of 2011 until the end of the reporting period, the following issued patents were added to
our patent portfolio":

• U.S. Patent No. 7,863,304, issued on 4 January 2011, entitled Analogs of GPE. The patent covers
the compositions of matter and methods of use of NNZ-2624 and NNZ-2552 as well as pharmaceutical compositions comprising the compounds and methods of protecting neural cells from death or degeneration.

• U.S. Patent No. 7,887,839 issued on 15 Feb 2011 entitled Oral Formulations of Glycyl-2 Methyl
Prolyl-L-Glutamate. The patent covers a broad scope of claims for various oral formulations of NNZ-
2566.

• U.S. Patent No. 8,013,170 entitled Substituted Pyrrolo[1,2-D][1,4]-Diazonines and Treatment of Brain
Damage issued 6 September 2011. The claims cover the formula of a macrocyclic compound NNZ-2599. Neuren’s proprietary macrocyclics are neuroprotective compounds characterized by the presence of a large cyclic structure that results in increased metabolic stability and greater protease
resistance.

• Japanese Patent No. 2006-525,396 granted 4 October 2011 entitled Bicyclic Compounds and
Methods for Their Use in Neuroprotection. Its claims cover the composition of: NNZ-2591, NNZ-2621 and NNZ-2622.

• U.S. Patent No. 8,067,425 issued 29 Nov 2011, entitled Bicyclic Compounds and Methods for Their Use in Neuroprotection. The patent covers NNZ-2591 as well as pharmaceutical compositions containing it.

In addition, the following patent applications were published in the course of the reporting period:

• U.S. Patent Application No. 12/903,844 entitled Cognitive Enhancement and Cognitive Therapy Using Glycyl-L-2-Methylprolyl-L-Glutamic Acid published on 12 May 2011 (Pub. No. US 2011/0112033). The application covers therapeutic uses of NNZ-2566 to treat cognitive or memory disorders.


Looking forward to Results for Perseis In May.

Perseis Cancer Research Program

"The Trefoil Factor (TFF) program targeting breast and other cancers was assigned to Perseis Therapeutics, a
Neuren subsidiary jointly established with the New Zealand Breast Cancer Research Trust (BCRT) in 2009.

With initial funding of NZ$1.18 million from the BCRT, Perseis initiated a program to develop and test
monoclonal antibodies against TFF-1 and TFF-3. Trefoil Factors are estrogen-regulated proteins secreted by
cancer cells that act as growth factors in a number of cancers, promoting growth and spread of tumours.

TFF-1 is expressed in up to 68% of breast cancers and its expression is negatively associated with survival in
patients with metastatic disease.

TFF-3 is strongly associated with tamoxifen resistance and inhibition of TFF-3 has been shown to be effective in treating tamoxifen resistant breast cancer cells in culture.

Among patients treated with tamoxifen, survival is highly correlated with the level of TFF-3 expression. Tamoxifen is
a widely used drug that blocks the growth-promoting effects of estrogen and is the world’s leading hormonal drug for the treatment of breast cancer. Between 25% and 35% of women who take tamoxifen to prevent the recurrence of breast cancer fail to respond to the drug. This phenomenon creates a significant need and opportunity for a product that can reduce or prevent tamoxifen resistance.

As previously announced, in 2011 Perseis selected three lead anti-TFF-1 antibodies for evaluation in an animal (xenograft) model of human breast cancer.

The antibodies were selected from a library of fully human antibody fragments owned by the University of California at San Francisco. The process of producing the monoclonal antibodies took longer than expected which delayed initiation of the study, however the xenograft studies are underway with final results expected by May 2012".