ANTEOTECH LTD — AGM Information 2012

Oct 24, 2012

Anteo Diagnostics (ASX:ADO)

Annual General Meeting 25[th] October 2012 Welcome

MEETING FORMAT

• Introductions • Formal Resolutions • Other Business • Meeting Close • CEO Report

INTRODUCTIONS

Introductions

Anteo Diagnostics Limited

–  Dr Mark Bouris Non Executive Chairman

 Richard Martin – Executive Director

 Sandra Andersen – Non Executive Director

 Dr Geoff Cumming – CEO

 Dr Joe Maeji – Chief Scientific Officer

 – Dr Tina Baumgartner Vice Business President Business Development

 – Shane Hartwig Company Secretary

Grant Thornton

 Matthew Bell – Partner

FORMAL RESOLUTIONS

RESOLUTIONS

Resolution 1 Adoption of Remuneration Report Resolution 2 Re - Election of Director (Ms Sandra Andersen)

RESOLUTIONS – PROXY COUNT

		For	Against	Open	Abstain	Totals
Resolution 1	Adoption of Remuneration Report	52,002,778	2,359,999	Nil	964,000	55,326,777
Resolution 2	Re -Election of Director (Ms Sandra Andersen)	33,494,994	1,419,774	20,323,534	88,475	55,326,777

OTHER BUSINESS AND QUESTION TIME

The Convoluted Path of Progress in Technology Transfer

Geoff Cumming CEO October 2012

Anteo’s Business Development Approach

Identify unmet commercial needs that can be addressed through the use of Mix&Go

• Identify industry participants that are likely to benefit from use of Mix&Go

• Engage with those companies to explore potential benefits in more detail

• Enter into confidentiality (CDA) and/or Materials Transfer Agreement (MTA)

• Enable “Proof of Concept” trial at partner site that demonstrates the capabilities of Mix&Go in their hands

CDA/MTA

Companies enter into Confidential Disclosure Agreements (CDA’s) when they:

• Consider doing business together and

• Need to know more about one another to assess the benefits

• Want to ensure that information disclosed in the process cannot be disclosed to a third party.

CDA’s are legal contracts

• A Material Transfer Agreement (MTA) is entered into if:

• Materials are going to be transferred from one party to the other (or in both directions).

Companies don’t enter into these contracts lightly because they can limit freedom to operate

Current Prospects

Anteo now has a total of:

• 69 CDA’s

• 60 MTA’s in place

Usually a CDA precedes an MTA

• Recently, given the routine requirement for materials to be exchanged, we have combined the two documents to save time and effort

• Many global leading companies are included

• After an MTA is signed, Anteo ships the agreed upon materials and protocols and supports the companies, e.g. by troubleshooting

Service Delivery With Limited Resources

Providing individual support to each recipient of Mix&Go requires a larger service organization than Anteo has. Standardized procedures are being developed:

• General Guidelines

• Standard Operating Procedures

• FAQs and troubleshooting documents

• This approach allows for:

• Testing to be successfully undertaken in third party sites with less involvement by Anteo staff

• Streamlining of internal processes, e.g. shipping,

Platform Technology

Mix&Go is a platform technology - defined as a “technology that has a common starting point but diverges once it is put into actual practice.”

Opportunities Challenges

• Broadly applicable - many markets

• Value can be gained from others integrating platform technology into their products

• Broadly applicable – where to focus?

• Adoption of new platform can be slow, switching cost are high once established

• Issues with other parts of system can delay product

Anteo’s approach is to make Mix&Go platform technology available to third parties to create novel or enhanced products and participate via royalties in the partner’s success.

This is not always easy, as the following case studies show.

Case Study 1

Partner : well-known and reputable manufacturer of products for the R&D market

Process :

• Convince party of the merits of Mix&Go by generating ten-fold performance improvement compared to commercial product

• Work to integrate Mix&Go into product range begins

• Company acquired

• Initial product range discontinued

• Mix&Go validated and optimized for new product range

• Further seven fold improvement

: Consequence

• Even more convincing value proposition for Mix&Go

• But: release of commercial, royalty-bearing product ,delayed

Case Study 2

Partner : start-up company with award winning innovative product

Process :

• Introduce Mix&Go to company, immediate interest as it addresses an unsolved technical issue

• Perform very successful feasibility study

• Commence amicable licensing discussions, fast agreement on key terms

• Company identifies Mix&Go unrelated intermittent failure which is unacceptable to prospective customers

• Licensing activities halted whilst cause of problem remedied

: Consequence

• Delay of execution of agreement

• Delay of market availability of Mix&Go enhanced product

• But: Mix&Go still crucial component of system

Case Study 3

Partner : established global IVD company

Process :

• Introduce Mix&Go as replacement for current product

• Perform very successful small scale feasibility study

• Move on very quickly to large scale feasibility study

• Encounter problems as they are trying to fit Mix&Go into their standard large scale process

: Consequence

• Delayed progress

• Troubleshooting and support are time and resource consuming

• But: can likely be remedied. Will partner have patience/ willingness to persist?

Case Study 4

Partner : World-leading supplier of products for the R&D market

Process :

• Introduce Mix&Go as superior alternative to existing method

• Optimize product under conditions specified by partner

• Expect licensing discussion Feb 2012

• Partner requires more stringent performance criteria

• Further optimisation and subsequently even more stringent criteria required by partner

• Ongoing optimisation, one concern addressed, other WIP

: Consequence

• Much longer path to product than anticipated

• Optimisation process is time and resource consuming

• Optimisation likely to be successful – is partner satisfied then?

Case Study 5

Partner : Top 5 worldwide provider of R&D products

Process :

• Introduce Mix&Go as broadly applicable technology platform useful to improve upon a variety of products

• Partner recognizes opportunity, fast MTA turn around and pilot testing

• Initial experiments successful, scientists champion further investigation

• Change in strategic direction of division, resources allocated differently

: Consequence

• Scientists continue to work with Mix&Go but as skunk works

• Time line to product drawn out

• But: continue to support scientists to retain internal champions, strategic direction may change again

The Best Laid Plans …

• Technology transfer can be a lengthy and tricky process, esp. for platform technologies such as Mix&Go

• Delays can occur that are unrelated to Mix&Go performance

• Company needs to find balance between pursuing too few and too many opportunities

• Too few: pipeline runs dry

• Too many: small organisation unable to support

• Anteo’s strategy:

• Maintain full pipeline

• Manage by increased standardisation of processes

  • Mix&Go protocols

  • Support and troubleshooting documentation

  • Internal processes such as shipping