ABMI AFRICAN BIOTECHNOLOGY

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ABMIAFRICAN BIOTECHNOLOGYMEDICAL INNOVATION
INVESTMENTSA new investment frontier for
Sekunjalo
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BIOTECHNOLOGYDEFINITION

• Body of methods and techniques that employ as
  tools the living cells of organisms or parts or
  products of those cells (such as, genes and
  enzymes).

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PRESENTATION FORMAT

• Introduction
• Global Biotechnology
• South Africa Biotechnology
• Bioclones
• Bioclones Product Portfolio
• Prospects

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INTRODUCTION SEKUNJALO BIOTECHNOLOGY

• Plant (Seagro Sea kelp)
• Animal (Aquaculture Probiotics)
• Industrial (Diagnostic enzymes Uricheck)
• Human pharmaceutical (Bioclones)
• Stem cell (Cardiac?)

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GLOBAL BIOTECHNOLOGY

• 2005 Global Revenues (Public Companies)
• 18 Increase
• 63,2 billion (R407 b)
• 4 R D (20,4 b)
• Net Loss - 4,4 billion (R28,3 b)

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GLOBAL BIOTECHNOLOGY

• Funding raised in 2005
• 19,7 billion (R126,9 b)
• 3rd highest ever
• Market cap 2005 in excess of 400 billion
• Excludes private Biotech companies

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GLOBAL BIOTECHNOLOGY

• FDA approved Novel Compounds from Biotechnology
  Industry eclipses Big Pharma since 2003 on a 3rd
  of the R D spend.
• Convergence of Big Pharma and Biotech

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SOUTH AFRICABIOTECHNOLOGY

• National Biotech Strategy
• 2001 Cabinet Approval
• DST Mandate Funding Commitments
• BRICS (Biopad, Cape Biotech, LifeLab, Plantbio)
• R400million invested to date

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SOUTH AFRICABIOTECHNOLOGY

• Competitive Advantage
• - World Class Scientists Universities
• - Highly educated and skilled Scientists
• - Relatively low wages
• - Strong research base for clinical trials

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SOUTH AFRICA BIOTECHNOLOGY

• Challenges
• - Retaining top Scientists
• - Improving IP protection enforcement
• - Facilities
• - Funding
• - R D critical mass

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SOUTH AFRICAN BIOTECHNOLOGY

• Requires a significant success story that will
  boost the Biotechnology industry in South Africa
  into the Global arena.
• One such success will result in Global investment
  and partnerships.

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ABMI / BIOCLONES

• ABMI 100 subsidiary of Sekunjalo Investments
  Limited
• - Housing all biotech investments of the group
• AMBI owns 49,9 of Bioclones Remainder,
  Scientists, Futuremed Investor (originally SAB
  owned)

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BIOCLONES

• Dedicated biotechnology company, developing,
  manufacturing marketing modern biotechnology
  products for human pharmaceutical use.
• Africas most successful biotech company wrt
  commercialization and global patents.
• Three of top ten places in developing economy
  biotech Nature Biotech and Economist.

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BIOCLONES

• IP Base
• - 22 Global patents
• - Successfully commercialized EPO (Repotin)
• - Licence Technology for GCSF
• - R D HIV Aids, Chronic fatigue
• syndrome, immune diseases and
• prostatic cancer

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BIOCLONES

• Clinical trial capability resource according to
  global specifications. Important reason why
  Bioclones has been able to commercialize R D
  for human pharmaceutical use.

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BIOCLONES

• Facilities
• - Centurion world class EPO,
• manufacturing facility
• - Goodwood class, 1000 facility for
• double stranded RNA Polymers
• - Partnership facilities at UCT Pretoria
• University etc.

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BIOCLONESPRODUCT PORTFOLIO

• EPO (Repotin) recombinant human erythropoietin
• G-CSF (Granulocyte colony stimulating factor)
• Ampligen double stranded RNA Polymer
• Dendritic cell vaccines

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BIOCLONESPRODUCT PORTFOLIO

• EPO (Repotin)
• Used for oncology and anemia of chronic renal
  failure
• The worlds largest biotechnology product with
  2005 revenues of over 12 billion.
• Amgen (founded on EPO, market cap 80 billion
  two major products
• EPO G-CSF)

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BIOCLONESPRODUCT PORTFOLIO

• Repotin (EPO)
• - Cell line patent process for global
• market excluding USA (6 billion)
• - 1300 patient years of treatment
• - No adverse side effects major
• competitive advantage vs Amgen
• - GMP / EMA facility (low cost structure)

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BIOCLONESPRODUCT PORTFOLIO

• Repotin (EPO)
• - Expanding manufacturing facility for global
• markets
• - Planning for marketing into Europe, Asia
• Southern Hemisphere immediately
• - Marketing Agreements via licensing or JV
  with
• multinationals
• - Low penetration of 10 1,2billion in
• revenue p.a.

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BIOCLONESPRODUCT PORTFOLIO

• G-CSF
• Companion product to EPO
• - Stimulates bone marrow to produce white
• blood cells (neutrophil granulocytes)
• - Used in oncology (cancer treatment)
• - Global market per annum 3 billion
• - Low penetration 10 300 million

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BIOCLONESPRODUCT PORTFOLIO

• G-CSF, and Solidago and DST
• DST through Biopad, 5,3 million investment in
  Ribotech facility Goodwood
• Solidago strategic partnerships in China, India
  and Russia
• Bioclones first cell line and Licence and
  technology transfer to non big pharma

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BIOCLONESPRODUCT PORTFOLIO

• Solidago decision based on the following
• - World class facilities
• - Top scientists
• - Top Universities partnerships
• - Track record of RD
• commercialization of EPO
• - Government commitment

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PROSPECTS

• Immediately global commercialization of EPO
• 18 months global commercialization of G-CSF
• SekPharma to benefit from licensing and sales
  marketing in Sub-Saharan Africa
• Product portfolio in HIV Aids, chronic fatigue
  syndrome data being analyzed
• Prostatic cancer and Dendritic cell phase
• R D

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PROSPECTS

• Bioclones top rated company and scientists with a
  proven track record of commercialization from R
  D
• Validated by Nature Biotech and Economist
  Biotechnology
• Validated by IP 22 global patents
• Mini Amgen with direct competitor products

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PROSPECTS

• Options for global commercialization of product
  portfolio
• - Outright sale to big pharma
• - JV on marketing globally with big pharma
• - Outright sale to private equity
• - Listing on London or NASDAQ
• subject to Reserve Bank approval

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PROSPECTS

• An announcement with regard to the options for
  Bioclones will be made in early 2007.
• THANK YOU