patersons research note- 6 july

another updated research note from Patersons... the following is available on the EMS website - www.eastlandmedical.com.au


Eastland Medical (EMS) $0.049
Recommendation: SPEC BUY
Analyst: Allan Franklin Tel: 03 9242 4001

Event
 Eastland has been invited to present the results of its recently completed
Rwandan clinical trial at the Boston 2010 Interscience Conference.
 The lead investigator for the ArTiMist trial, Dr Stephen Rusilia, will
present his research paper titled 'Sublingual Artemether in Severe
Childhood Malaria' at the Interscience Conference on Antimicrobial Agents
and Chemotherapy 2010. The conference is being held from September 12
- 15 in Boston, USA.

 The conference is the leading information seminar for infectious diseases
and antimicrobial agents and is well attended by physicians, clinical
microbiologists, researchers, pharmacists, trainees and multinational
companies from around the world.

Impact
 The conference specifically requires new or novel information to be
presented. Eastland has withheld the results of the Rwandan trial in order
to keep Dr Rusilia's paper within these requirements. The inclusion into the
program is significant because Eastland may now present its 'unique solution for
the treatment of severe malaria in children' to a respected, well attended and
global audience.
 In our view, presenting the trial findings to the conference has
substantially more inherent value for Eastland (as opposed to releasing
them via the ASX) in terms of marketing ArTiMist internationally to
prospective investors and trade sale buyers.
 Indeed, the Australian market appreciated the good news with a share
price movement from 3.5 cents to 4.7 cents on high volume.
 Importantly, the timing is appropriate as the confirmatory multi centre
study is set to commence in September. Therefore, interested
parties wanting a stronger clinical file may either elect to follow Eastland's
progress or become involved in the study itself by way of partnership,
funding etc.
 We reiterate our SPEC BUY recommendation on Eastland and retain our
$0.29 target price.

Disclosure: Patersons Securities Ltd acted as Lead Manager to the Share Placement that raised $0.87m at
$0.03 per share for Eastland in May 2009. It received a fee for this service. Patersons Securities Ltd also acted as
Lead Manager and partial Underwriter to the Rights Issue to raise $3.28m at $0.03 per share for Eastland in June
2009. It received a fee for this service.

Allan Franklin
Research Analyst
D: +61 3 9242 4001 | F: +61 3 9224 4430 | E: [email protected] | W: www.psl.com.au
Patersons Securities Limited AFSL No. 239 052
Level 15, 333 Collins Street, MELBOURNE VIC 3000