1. “Australia is #1 site to conduct clinical trials” “Australia is #1 site to conduct clinical trials” Summary of Economist Intelligence Unit Report: Benchmarking Study of the Characteristics of the Australian and International Pharmaceutical Industries Sep 2005

2. About the study Independent study conducted by Economist Intelligence Unit Commissioned by Australian Govt. Dept. Industry Tourism & Resources, Invest Australia, Victorian Govt. Dep. Innovation, Industry & Regional Development Benchmarked Australian Industry versus: –USA –UK –Germany –Japan –Singapore –India Full report available at: www.industry.gov.au

3. Summary Scores Across Pharmaceutical Industry

4. Clinical Trials Benchmarking Aggregate Benchmark Scores What is driving Australia’s performance?

5. Driven by low average cost per patient and high availability of research sites… Average cost per patient# sites per 100,000 pop. $6,712 (USA) to $2,500 (India) $3,984 (Australia) 25,000 (USA) to 11 (Singapore) 2,500 (Australia) source: CentreWatch

6. …Good participation rates and high on-time completion rates… # patients in trials per 100,000 pop.% Studies completed on time 3,600,000 (USA) to 3,745 (India) 20,000 (Australia) 85% (India) to 10%(USA) 80% (Australia) source: CentreWatch

7. …with a capacity to do more... #Phase I per 100,000 pop.#Phase II per 100,000 pop. #Phase III per 100,000 pop.#Other Phase per 100,000 pop. Other includes Phase IV, medical device, bioequivalence

8. …and a quality workforce Pharma Industry skilled professionals per 100,000 LF. #Graduate degrees per 100,000 LF. Regulatory & Quality SystemsGovt. Initiatives & Incentives Other includes Phase IV, medical device, bioequivalence

9. Clinical Trial Activity 2004 2005

10. Pharma company sales in Australia $6b (1.2% of world market) 93% prescription sales covered under PBS (Govt. funded) 57% having some degree of local manufacture Export sales of Pharmaceuticals $2.4b 421 Core biotechnology companies (83 listed) Market cap $4.3b (ex. CSL) 612 Medical device companies (45 listed) Market cap $9.0b Snapshot of Australian Pharma & Biotechnology Industry Source: Bioindustry Review 2006

11. Australian Biotech sector is very active in forming alliances 36% North America 19% Europe 12% Asia 28% Internal 3% NZ/Pacific 2% Africa 112 alliances formed with US companies in 2005 Australian Biotechs purchased 24 overseas companies 112 alliances formed with US companies in 2005 Australian Biotechs purchased 24 overseas companies Source: Bioindustry Review 2006

12. Australia is an excellent location for conducting clinical research Australia has a vibrant Biotech & pharmaceutical sector Australian companies want to work with international partners Key Takeaways: