1.  Financial Analysis Pierre Mouy March 2010

2. Company Overview  Biota Holdings is a Pharmaceutical company engaged in anti- infective drug R&D, and its commercialization to treat respiratory diseases, particulary Influenza.  Biota’s blockbuster product, Relenza, 1 st in class NAI is marketed by GSK.  R&D activities focus on the development of drug candidates for the treatment of :  HCV infections  RSV infections  HRV infections  The company has several partnerships with Pharmaceuticals such as:

3. Company snapshot  In 2010 Biota Holdings Ltd operates with 3 subsidiaries

4. Company snapshot  Biota’s Headquarters in Melbourne, Australia  34 Employees estimated Mr Peter Cook CEO Managing director Since 2005 Dr James Fox Chairman since 2009 Dr Simon Tucker Vice President Research Since 1997 Dr Leigh Farrell Vice President Business D Since 2006 Dr Jane Ryan Vice President Product D Since 1997 Dr John Lambert Executive director Since 2002

5. Company snapshot  Biota Holdings floated on the Australian Stock Exchange ( ASX )  2006 Biota admitted to the S&P/ASX 300 index  Biota datas:  174 m shares for a AUD $324 m Market Cap

6. Financial performance  The Company reported:  Financial year end June  Revenues of $60.56m during the fiscal year ended June 2009, increase of 54.11% over 2008  Net Profit of $38.18m in 2009, whereas Biota reported a net loss of 6.49m during 2008

7. Financial report  Biota Holdings Limited  Income Statements For the year ended 30 June 2009 Others incomes : $22.776 m ( suit GSK ) Total Revenues : $83.334 m

8. Financial report  Biota Holdings Limited  Expenses Statements For the year ended 30 June 2009

9. Financial report  Biota Holdings Limited  Income/Expenses Statements For the year ended 30 June 2009

10. Financial report  Biota Holdings Limited  For the year ended 30 June 2009  Total Revenues : $83.334 m  Total Expenses : $ 41.517 m  R&D : 42% Revenues  Litigation : 12% Revenues  Salaries : 7.10% Revenues  Sub-royalty : 7% Revenues  Finance cost : 0.2% Revenues

11.  Biota Holdings Limited  Balance sheets  Strong cash position  ~ $86.7million  ~ 1.43 x Incomes  ~ 1 year ½ available  Total equity  ~ $97 million Financial report For the year ended 30 June 2009

12. Financial report  Biota Holdings Limited  Balance sheets  Total Assets  ~ $111,629 million  Total Liabilities  Total equity ~ $ 97,032  + Liabilities ~ $ 12,454  = ~ $111,629 million Assets = Liabilities

13. Financial position Analysis  Biota Holdings Limited vs Pharmaceuticals & Healthcare sector (Oz) during the period 2005-2009  100.61 % Annual growth rate, 11.8% above the average sector  3 kinds of ratios for the fiscal year year 2009:  Profitability ratios:  69.05 % operating margin OM, 18.5 % above the average sector  39.4 % return on equity ROE, 16.1 % above the average sector  Operating costs ratios:  31 % operating costs (% sales) OP over 5 years  Liquidity ratios:  7,6 % current ratio CR over 5 years

14. Profitability ratios  To assess the Biota’s ability to generate earnings based on Revenues  69.05 % operating margin, 18.5 % above the average sector  OP used to mesure the Biota’s Pricing strategy & Operating efficiency OM = (Operating Income/ revenues) * 100

15. Profitability ratios  To assess the Biota’s ability to generate earnings based on Ressources used  39.4 % return on equity, 16.1 % above the average sector  OP used to mesure the rate Of Return on the Shareholder’s equity ROE = (Net Income/Shareholders Equity) * 100

16. Operating cost ratio  Operating costs :  To understand the costs the company is incurring as % of sales  31 % operating costs (% sales) OP in 2009 Operating cost = (operating expenses/Revenues) * 100 20052006200720082009 Op costs (% sales) 502,86181,5068,08123,6930,95

17. Liquidity ratios  Current ratio ( absolute ratio )  Current ratio 2009 = 7,61  Used to determine the Biota ability to pay off its short-terms debts obligations  ( the highter the value ratio is, the larger the margin of safety biota would possese to cover short term debts)  ( if ratio = 1 near Bankruptcy !! ) Current ratio= (Current assets/Current liabilities) 20052006200720082009 Current ratio 6,294,935,273,337,61

18. Stocks Analysis  S&P /ASX 300, in the Intersuisse Biotechnologies Index  Market capitalisation ~ $324m  Shareholders ~ 13,300  Total shares ~ 174m

19. Stocks Analysis Bird Flu Rumour 11 Aug 2005 Inside Traders wave + 30,6% Mediatization + 312,65% 10/10/2005 Nov 2005 French order 9m courses April 2006 US defense order 5,5m courses Jul 2006 US order 16m courses First Profitability announced Swine Flu Rumour 24 April 2009 Inside Traders wave + 31,34% Mediatization + 296,32% 27/04/2009 Open gap 24/10/2009 Nasdaq biotech

20.  PER Capital market ratio:  Mesure of the price paid for a share relative to the annual income earned per share.  PER (Price earning ratio) = 9,66 ; vs 11,4 Aussie sector average  Capital management :  $20m return to shareholders in Dec 2009 ! 1st time since 1985  ~0,12 cents per share dividend  ~ significant Stocks Analysis

21. SWOT Analysis StrengthsWeaknesses Strong In-house Research capabilities Flagship Product: Relenza Strong Financial Position Business Concentration: Aussie Limited Investor Confidence OpportunitiesThreats Significant Collaborations Market Potential: HCV Emerging Markets Competitive Pressures Government Regulations Uncertain R&D Outcomes

22. THE END References: - Annual report 2009 - Global market directs - Business week - Intersuisse - Euronext - Google fiinance - biota website