New Tools for the Enhanced Management of Chronic...

[Insert FSCo logo]

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

1

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

2

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

33

[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

44

[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.

5

Molecular Dx is the fastest growing IVD segment (>15% CAGR).

[Insert FSCo logo] Initial Product – Blood Glucose Test


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

66

[Insert FSCo logo]

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


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

7

[Insert FSCo logo]

UBI and LifeScan (blood glucose/diabetes)– A Strong Relationship

2002 - Licence Agreement 2002 Development and Research Agreement


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

88

[Insert FSCo logo] UBI - LifeScan

The Master Services and Supply Agreement: - Is an umbrella agreement permitting multiple products and


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

99

[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

10

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)

11

» 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

12

PT test3

12

[Insert FSCo logo] Dry Immunoassay Meter


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

13

[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


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

14

- Part of companion diagnostics for Pharma- Timely intervention in a diagnostic setting

14

[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

15

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


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

16

[Insert FSCo logo] Protected - Extensive Licensed and Owned IP

42 patent families covering products, manufacturing, core and peripheral technology


Pipeline products manufacturing, core and peripheral technology

245 granted patents

259 pending applications

Emerging trends

259 pending applications

504 patents plus applications

1717

[Insert FSCo logo] Current Healthcare Trends are Financially Unsustainable

Budget balance

% GDP on healthcare

Healthcare spending per

Growth in healthcare


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

1818

[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


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!

1919

[Insert FSCo logo] Industry Views


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

[Insert FSCo logo]

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

21

Helps better meet the needs of patients

21

[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

22

New Tools for the Enhanced Management of Chronic...

Documents

Transcript of New Tools for the Enhanced Management of Chronic...