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New Tools for the Enhanced Management of Chronic DiseaseManagement of Chronic Disease
Based on a Proprietary, Point of Care,Based on a Proprietary, Point of Care, Electrochemical Detection System
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Universal BiosensorsInvestor Presentation
February 2010
[Insert FSCo logo] Important disclaimer
This presentation is intended to provide a general outline only and is not intended to be a definitive statement on the subject matter. This presentation is not financial advice and has been prepared without taking into account the objectives, financial situation or needs of a particular person. N ith th C it ffi d i th t th fNeither the Company, nor its officers or advisors or any other person warrants the accuracy ofthe analysis herein or guarantees the investment performance of the Company. Investorsmust make their own independent assessment of the Company and undertake suchadditional enquiries as they deem necessary or appropriate for their own investmentpurposes.Under applicable United States securities laws all of the shares of our common stock are“restricted securities” as that term is defined in Rule 144 under the Securities Act of 1933, asamended (Securities Act). Restricted securities may be resold in the public market to UnitedStates persons as defined in Regulation S only if registered for resale or if they qualify for anexemption from registration under the Securities Act. We have not agreed to register any ofp g g g your common stock for resale by security holders.The statements contained in this presentation that are not purely historical are forward-looking statements within the meaning of the Exchange Act. Forward-looking statements inthis presentation include statements regarding our expectations, beliefs, hopes, intentions orstrategies regarding the proposed offering All forward-looking statements included in thisstrategies regarding the proposed offering. All forward looking statements included in thispresentation are based upon information available to us as of the date hereof, and weassume no obligation to update any such forward-looking statement as a result of newinformation, future events or otherwise. Our actual results could differ materially from ourcurrent expectations.Th C i bj t t b f i k F f k i k f t th
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The Company is subject to a number of risks. For a summary of key risks, refer to theCompany’s most recent Form 10-K filed with the United States Securities and ExchangeCommission.
[Insert FSCo logo] Creating Shareholder Value
Our unique platform is validated
Sustainable business
Pipeline products
1 Creating a sustainable operating business
Our unique platform is validatedProduct developed for the biggest marketPartnered with a market leader
Emerging trends
2 Pipeline of growth opportunities
Pipeline of new products in developmentReplicate commercialisation strategyStrong IP suite
3 Capitalising on emerging imperatives
Capitalising on market trends: Companion diagnosticsEvidence based medicinePersonalised medicine
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[Insert FSCo logo] Timeliness - A Key Missing Link
Diagnosis and monitoring relies largely on Sustainable
business
Pipeline products
central lab testing
Automation has driven costs down in these settings
Emerging trends
settings
Logistics and time are major drawbacks for this structurethis structure
Improved and timely clinical decisions possible with robust Point Of Care Testsp
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[Insert FSCo logo] The In Vitro Diagnostics Market
The Global IVD market IVD market segments (2005)
2008 market size ~US$40bn
Sustainable busiess
Pipeline products
Glucose monitoring
21%
Other17%
36%
64%
Point of Care10‐12% CAGR
Central lab5% CAGR
Emerging trends
21%
Other POC15%Hemostasis
Molecular 7%
Microbiology1%
64% 15%
Clinical chemistry
14%Immunoassays
16%
9%
The glucose monitoring market is the biggest and most mature segment of the IVD Point of Care (POC) industry The total POC market expected to approach ~US$18bn by 2012
i 10 12%growing at 10-12% pa. Second largest IVD segment is immunoassay where we are developing a new capability.
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Molecular Dx is the fastest growing IVD segment (>15% CAGR).
[Insert FSCo logo] Initial Product – Blood Glucose Test
Sustainable business
Pipeline products
Used as part of the treatment of diabetesThe market is large, established and still growing
Emerging trends
g , g gOur product has market leading attributes and our partnership with a market leader, LifeScan, means that we have a powerful offering gThis business is targeted to provide a stable and sustainable income base to Universal Biosensors. Total value will be determined by the commercial success of the productsPartnership with LifeScan, a part of J&J
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The Most Accurate No-coding Blood Glucose Monitoring System Available
LifeScan’s One Touch Verio launched in The Netherlands Jan 25 2010 $US16 illi il t t i d i N
Sustainable business
Pipeline products
25 2010. $US16 million milestone payment received in Nov 2009.
Emerging trends
First SMGB system labeled to meet specifications tighter than current ISO specification
Targeted at Type 1 and Type 2 diabetic insulin users
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UBI and LifeScan (blood glucose/diabetes)– A Strong Relationship
2002 - Licence Agreement 2002 Development and Research Agreement
Sustainable business
Pipeline products 2002 - Development and Research Agreement
2003 - Johnson and Johnson Development Corporation equity investment
2007 M t S i d S l A t (MSSA)
Emerging trends
2007 - Master Services and Supply Agreement (MSSA)2008 - Fee for Service (scale up tasks)2008 - Manufacturing Process Support Agreement (2008)2009 - MSSA updated2009 - Development and Research Agreement updated2010 - LifeScan launch of first UBI developed product2010 LifeScan launch of first UBI developed product
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[Insert FSCo logo] UBI - LifeScan
The Master Services and Supply Agreement: - Is an umbrella agreement permitting multiple products and
Sustainable business
Pipeline products Is an umbrella agreement permitting multiple products and
services
- UBI is a (non-exclusive) manufacturer of sensor strips
UBI will develop other products for LifeScan
Emerging trends
- UBI will develop other products for LifeScan
Provides UBI revenue from: - Milestone payments for R&D success
- Providing R&D services to LifeScan
Manufacturing blood glucose strips- Manufacturing blood glucose strips
- Service fee based on strips sold
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[Insert FSCo logo] The Glucose Operating Business
Steady ramp up in markets expected over next few yearsSustainable
business
Pipeline products
LifeScan continuing with increased level of research and development funding to UBI to improve existing technologies
Emerging trends
UBI GMP strip manufacturing plant in Rowville (Melbourne), Australia is the current sole manufacturer of strips for the new product
- Installed capacity for 750 million strips pa
Second line in progress- Second line in progress
We expect LifeScan to commission initial capacity of its own in
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p p y2011
[Insert FSCo logo] Glucose Market Information
From Published Sources:Sustainable business
Pipeline products
- Roche Diabetes Care sales grew 6% in 2009
- Bayer Diabetes sales grew 6.8% (FX adjusted) in qtr3 2009 ith C t d t i 15%
Emerging trends
with Contour product growing 15%
- J&J Diabetes sales reduced by 1.3% (FX adjusted) in 2009
- Overall market thought to be flat in 2009 due to Global Financial Crises ( Roche Annual Report)
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» Source Annual Reports of Roche and J&J and Quarter Report for Bayer
[Insert FSCo logo] Flexible Platform Creates Many Opportunities
Glucose test 1Sustainable
business
Pipeline products
Future
Emerging trends
hsCRP 2development
4D-dimer
PT test3
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PT test3
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[Insert FSCo logo] Dry Immunoassay Meter
Sustainable business
Pipeline products
Unique ShapeDifferentiates product and allows for right and left-handed use
Emerging trends Body
With soft edges for better grip,
maneuverability and comfort
Touch ScreenWith dark background to minimise power use. Visual and audible feedback
Mechanical integralon/ off switch
Integral to front facefor ingress protection
Barcode Scanner Strip Ejection Mechanism
RunwayFor easier strip insertion
Stable on flat surface
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[Insert FSCo logo] Advantages of UBI Platform
Easy to use
Derived from a product successfully used over 16bn times a year (blood glucose strip)
- Minimal user steps
Sustainable business
Pipeline products
- Small finger stick sample
QuantitativeAccurate and Precise
- Competitive with lab based tests
Emerging trends
p
TimelyResults produced quickly
- Tests expected to produce results in a matter of minutes
Low costSimple design and automated manufacturing process dramatically reduces costs
- UBI can be the low cost producer
Flexible
Platform can be adapted to develop tools for many other biomarkersAttractive as:
P t f i di ti f Ph
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- Part of companion diagnostics for Pharma- Timely intervention in a diagnostic setting
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[Insert FSCo logo] Product Pipeline
PROTO-TYPE
DEVELOP-MENT CYCLE
PRODUCTION CAPABILITY/
CAPACITY
MARKET REACH
MARKET LAUNCH
MARKETEXPANSION
APPLY CORE TECHNOLOGY: OPPOSEDELECTRODES, ALGORITHM, WEB
BASED MANUFACTURESustainable business
Pipeline products
Enhanced Blood Glucose Product
Active
LaunchedEmerging
trends
Immunoassay platform - CRP
2011Built,
awaiting installation
Active Business
Development efforts
underway
Active Business Development efforts for commercial partner
underway
Enzyme activity platform -
Prothrombin Time
Uses immuno-assay line
Development hold until partnered
Immunoassay platform -D-
Dimer
Uses immuno-assay line
Active Business Development efforts underway
Development slowed until partnered
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Nucleic acid platform
[Insert FSCo logo] Technology
Opposing electrodes which are close to one another are used to improve the electrochemical measurement of reactions in the blood New approach allowed broad patent
Sustainable business
Pipeline products reactions in the blood. New approach allowed broad patent
suite
The novel electrochemical cell in the test strip is designed to ll f t ith t ifi i d
Emerging trends
allow for greater accuracy, without sacrificing speed
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[Insert FSCo logo] Protected - Extensive Licensed and Owned IP
42 patent families covering products, manufacturing, core and peripheral technology
Sustainable business
Pipeline products manufacturing, core and peripheral technology
245 granted patents
259 pending applications
Emerging trends
259 pending applications
504 patents plus applications
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[Insert FSCo logo] Current Healthcare Trends are Financially Unsustainable
Budget balance
% GDP on healthcare
Healthcare spending per
Growth in healthcare
Sustainable business
Pipeline products
2009E (% GDP)
capita exp. per capita (pa.)
(1990-2007)US (13.5%) 16.0% US$7,290 5.8%
Emerging trends
( )
France (8.2%) 11.0% US$3,601 5.5%
Germany (4.6%) 10.4% US$3,588 4.3%
( 3%) 8 % S$2 686 1%Italy (5.3%) 8.7% US$2,686 4.1%
Australia (3.8%) 8.7% US$3,137 6.2%
UK (14.4%) 8.4% US$2,992 6.9%
Japan (7.4%) 8.1% US$2,581 5.3%
Sources: OECD, The Economist
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[Insert FSCo logo] Current Healthcare Trends are Financially Unsustainable
Aging populationAdditional ~500m people expected to be aged over 60 in next 20 years- Increase in demand for healthcare
Sustainable business
Pipeline products
- Reduction in Medicare contributions
Increased incidence of h i di
+80% of people over 60 in the US have at least one chronic disease
50% have at least 2 Chronic diseases and 20% have diabetes
Emerging trends
chronic disease Major chronic diseases include: - Diabetes, Cardiovascular disease, COPD, Cancer, Arthritis
Technology gapMajor GP tools have not changed since the 1970’s
Technology gapMost drugs only work in % of patients
SOMETHING HAS TO CHANGE!
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Sustainable business
Pipeline products
‘By developing new capabilities in near-patient diagnosis, monitoring and health management, Inverness Medical I i bl i di id l k h f i iEmerging
trendsInnovations enables individuals to take charge of improving their health and quality of life. A global leader in rapid point-of-care diagnostics, Inverness’ products, as well as its new product development efforts, focus on infectious disease,
di l l d f b d ’ h lth ”cardiology, oncology, drugs of abuse and women’s health.”
“Focus on areas for which near patient diagnosis and it i f dl h th d i i imonitoring can profoundly change therapy decisions, improve
outcomes and lower costs.”
Inverness Medical Presentation to UBS Healthcare Conference 2010
2020
2010
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Complex Made Simple with the Power of the Technology
0
50Correct for antioxidants
-250
-200
-150
-100
-50
00 1 2 3 4 5
Time (s)
Curr
ent (
mic
roam
ps)
Distinguish blood from control solution
Measure concentration or reacted species
Monitor the reaction kinetics
Powerful algorithms
Accurate for the individual
Comprehensive Care
Whole blood finger stick
Powerful manufacturingPowerful breadth
Robust, Reliable, Affordableg
sample
Helps better meet
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Helps better meet the needs of patients
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[Insert FSCo logo] Capital structure
SummarySummary
Number of Shares on issue 157,233,266
Market capitalization at 16 Feb 2010 ~A$275 million
Number of Options on issue 10,024,153
Cash (at 31 Dec 2009) ~A$31.3 million
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