¥ Pricing/Month: 13,926 (being 2x the Brickell disclosed...

¥ Pricing/Month: 13,926 (being 2x the Brickell disclosed Japan’sNational Health Insurance (NHI) reimbursement price for a 20g bottle (being a 2week supply), grossed up to account for a standard 70/30 NHI/adult user co-payarrangement). Note 31 Mar FY year-end and figures are rounded:

• FY20A: ¥170M revenue / 13,926 = 12,208 prescriptions. Gross this up as ECCLOCK launched 26 Nov 2019, implies 35,158 for a full year in the first year. Multiply by 2.7x for USA/Japan 2022 population multiple = 93,670
• FY21A: ¥950M / 13,926 = 68,219. x2.7 = 181,754 (+94%)
• FY22A: ¥1,257M / 13,926 = 90,265. x2.7 = 240,489 (+32%)
• FY23A: ¥1,812M / 13,926 = 130,119. x2.7 = 346,672 (+44%)
• FY24E: ¥2,200M / 13,926 = 157,981. x2.7 = 420,904 (+21%)

The Japan market, as others have noted, is quite different(in BOT’s favour) – no advertising for prescription medicine allowed, higheruser cost coverage, more challenging to acquire a repeat script. I also thinkour Management team can move more size, just look at their experience andstrategy in the webinar, beautiful stuff. Plus Kaken launched in the spicyCOVID era.

Based on the above, notably plus (1) a conservativestarting TAM of 3.7M (being the PAH sufferers currently seeking treatment), (2)penetration ramped up to max 5.0% p.a. in Year 10, (3) 80% compliance to dose,and (4) LT EBITDA margin of 55%...

I arrive at my 1 Jul 2024 fully diluted Base Casevaluation of A$3.27/sh (11.0% discount rate). Note this is for Sofdra only.

The upside here is enormous. If it materialises, I’m namingmy first son Vincent.