bristane company briefing, page-2

I actually did end up attending.

My focus was on the pipeline, rather than the merger. Easier if I transcibe my questions and answers. A couple of these questions/answers might be nicked from others in the audience (my apologies).

LANI/Inavir

Q1. Why is there a 4-6% range for Inavir royalty rates in Japan?

Ans. Royalty rate increases to 6% when we do ROW licensing type deals.

DL also mentioned a $3M milestone payment in the near term (out of a total $18M milestone payment arrangement - might be worthwhile asking what trigger points for further payments)

Q2. What is the progress of Inavir Prophylaxis trial

Ans. DL doesnt know. It could have been completed. If so, it might be announced at the DS May 11 Year End reporting date.

Q3. What are plans for Flunet?

Ans. Sit on it. To be held in reserve for resistance issues in LANI etc. I asked about patent clock? He didnt give me a straight answer on that - can someone in Sydney clarify this point

Q4. Someone asked about trigger points for possible US govt procurement orders for LANI?

Ans. Possibly post-Phase II stage.

HRV

Q1. Confirmed Patent life of Vap is 2021.

Ans. Yes. DL said Vap would have 5-6 years in market, which is the average patent life in market (I thought the average was more like 8 years). I pointed out there are more recent patent issues for HRV and if these extended Vap life? I was a bit confused with the answer (can anyone else help at the BrisVegas meeting)? 5-6 years is too short IMO. I missed an opportunity to clarify this. If composition of matter patent protection is 2021, what is the patent protection for asthma use? Is it 2021 or later? Can someone in Sydney clarify this point?

Q2. Someone asked about cost of Vap Phase III trial?

$40M to $100M (not sure if this was for one or two trials)

Q3. Someone asked about when to take Vap (I think this was the question)

Ans. Probably in line with Influenza (2 days). (I think I jumbled this answer. Can someone in Syd/Bris clarify this point - how long have they got to take Vap for it to be effective - if they can answer - will this be an endpoint in Phase III?)

DL General Observation re Vap - they are pleased with HRV and the trial results exceeded expectations.

RSV (my love)

DL observations:

1. Excited.
2. Class Leading.
3. Our small molecule oral drug is the ducks nuts. Has addressed safety margin issues which bombed previous candidate.
4. Most competitor small & large molecule candidates have bombed out.
5. This market is for the taking.
6. Out of all products, RSV is a program DL would not want to license out early.
7. Good patent protection - possibly 10 years in market ( can someone in Sydney confirm this is the case)
8. Good non-financial support provided by NIH.

HCV

DL observations:

1. Biocryst are pissed.
2. Some Big Biocryst shareholders contacted Biota about it (not sure why?)
3. Expectation Biocryst will come to the table at some point.

Antibacterials

1. There may be big US grant funding opportunities at some point. Maybe. (Impression I got is they arent super proactive at this stage).
2. Proposed 5 year patent extensions might apply to our products (I dont think DL was aware of the proposed new legislation in the US).

I'll leave merger questions to other attendees.