Ann: Update on Japanese Sales-CDY.AX, page-58

It is not necessary to restrict corporate valuation methods to earnings alone. An accepted alternative is to calculate value based upon reported annual revenue numbers. This is particularly appropriate for companies not yet profitable.

The current average market price-to-revenue multiple for established drug-based US biotechnology companies is x 7.74.

Growth companies normally are valued on market using perceived financial numbers at least a couple of years into the future. Cellmid has indicated targeted revenue of around $4 million for this financial year, with year-on-year growth of at least 100%. This would result in revenue around $16 million for FY2018.

Application of the US price/revenue multiple on this figure then would indicate a market cap of $124 million, or current fair value of 13 cents per share.

If the April revenue figure from Japan is representative of how the OTC business is growing, the above valuation would be conservative.