AVECHO BIOTECHNOLOGY LIMITED — AGM Information 2011

Dec 8, 2011

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9 December 2011

THE MANAGER COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED

Dear Sir

re: GENERAL MEETING (“GM”)

(A) CEO Presentation

(B) Result of Resolutions

• (A) Attached for release to the market is a copy of the power point presentation given by the Company’s CEO, Dr Esra Ogru, to shareholders at the AGM held today in Melbourne

• (B) At the GM of the following resolutions as set out in the Notice of Meeting dated 31 October 2011 were each carried by the required majority on a show of hands.

As a result, shareholders resolved:

• Resolution 1 – approval of the prior issue of securities

• Resolution 2 – approval of an issue of securities pursuant to a further placement

A table detailing the results of the voting, by resolution, inclusive of the proxy voting is attached. In total the Company received 429 valid proxy forms covering 311,215,764 shares representing 32.16 per cent of the number of issued voting shares.

Yours faithfully Phosphagenics Limited

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per Mourice Garbutt Company Secretary p\asx\results gm 09 12 11

Phosphagenics Limited

ACN 056 482 403 ABN 32 056 482 403

11 Duerdin Street, Clayton Victoria 3168 Australia Telephone: +61 3 9565 1119 Facsimile: +61 3 9565 1151 Web : www.phosphagenics.com Email: info@phosphagenics.com

Phosphagenics Limited General Meeting 9 December 2011 Result of Proxy Voting

VALID PROXY VOTES RECEIVED	VALID PROXY VOTES RECEIVED	VALID PROXY VOTES RECEIVED	VALID PROXY VOTES RECEIVED	VALID PROXY VOTES RECEIVED
RESOLUTIONS	FOR	OPEN	AGAINST	ABSTAIN
As Ordinary Resolutions:
1 To approval of the prior issue of securities
No. Shares	155,083,848	6,377,137	1,587,848	148,167,395
No. Holders	314	66	31	13
Carried by : By Show of Hands
2 To approval of an issue of securities pursuant to a further placement
No. Shares	302,536,818	6,377,137	1,846,305	455,504
No. Holders	305	66	40	13
Carried by : By Show of Hands

PHOSPHAGENICS Commercialising platform delivery TPM[®] system: Shareholder Update General Meeting December 2011

Dr Esra Ogru Chief Executive Officer

Disclaimer

This presentation contains forward-looking statements based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialise, actual results could vary materially from Phosphagenics' expectations and projections. Risks and uncertainties include general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations.

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PHOSPHAGENICS

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Company Overview

Phosphagenics Ltd is an ASX-listed life sciences company in the early stages of commercializing drug delivery applications based on its novel transdermal (drugs administered via skin) TPM® - Targeted Penetration Matrix technology.

Board & Management

Key Statistics

Jonathan Addison (Chairman and Independent Director) Harry Rosen (President & Chief Executive Officer) Dr Esra Ogru (Chief Executive Officer) Donald Clarke (Independent Director) Stuart James (Independent Director) Sandra Webb (Independent Director)

ASX Code POH Current Share Price 17.5 cents 52 Week High / Low 19 / 9 cents Shares on Issue 1,017.6 million Market Capitalisation $178.1 million Net Cash circa $30 million

Share Price Performance

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PHOSPHAGENICS

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Major Shareholders Holder Name % Orbis Global Equity Fund Limited 18.85

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$27.1m Capital Raising

• Company now strongly funded

• $27.1m capital successfully raised

• $17.1m from institutions and sophisticated investors

• $7m from major Singaporean based investor

• $3m share purchase plan

• Institutional placement and SPP strongly oversubscribed

• Sufficient funds to steer our lead pharmaceutical program through pivotal trails

• Positions the company to exploit TPM[®] technology

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Use of Funds

• TPM/oxycodone clinical trials

• Phase I – 3 (2012/13)

• Regulatory submissions (2013)

• $20m

• Expansion and distribution of Elixia and BioElixia throughout Asia, Europe and USA

• Brand promotion

• New product development

• $5m

• Expansion of TPM[®] platform

– $3m

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PHOSPHAGENICS

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TPM[®] TECHNOLOGY A PLATFORM DELIVERY SYSTEM

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TPM® Technology

• Phosphagenics is a world leader in transdermal drug delivery technology: TPM[® -] Targeted Penetration Matrix

• A drug delivery system with applications across multiple products and markets

• TPM[®] is a unique first in class topical (localised, nonsystemic) and transdermal (into the blood via the skin) drug delivery system

• TPM[®] can deliver small and large molecules

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• TPM[®] is a non-invasive & non-irritant drug delivery system

• TPM[®] is comprised of two active components both derived from Vitamin E

• Strong intellectual patent portfolio – 20 patent families

• TPM[®] has USA GRAS status ✪

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PHOSPHAGENICS

✪ "GRAS" is an acronym for the phrase Generally Recognised As Safe. Generally recognised, among qualified experts, as having been adequately shown to be safe under the conditions of its intended use

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Diverse Pipeline

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PHOSPHAGENICS

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PAIN
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DERMATOLOGY
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ANIMAL HEALTH
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PERSONAL CARE
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SYSTEMIC PATCH
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LOCAL
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OXYCODONE
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DICLOFENAC
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ANTI-ACNE THERAPIES
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NOVARTIS COLLABORATION
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MASTITIS MANAGEMENT
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ELIXIA®
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PEAU DE VIERGE
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MASS MARKET
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PHARMACEUTICAL DIVISION

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TPM[®] /Oxycodone Patch Trials Begin

• TPM[®] /Oxycodone patch trials commenced

• Pharmacokinetic study will examine safety and tolerability of the TPM[®] /Oxycodone patch

• 65 Subjects will participate in trial

• Trial to examine Oxycodone delivery profile of newly developed patch

• Patch optimised by global company 3M

• Pre-cursor to pivotal Phase III trial

• Swift path to market expected

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TPM/Oxycodone Patch

• World’s first transdermal oxycodone patch

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• Global development partner 3M

• 3M Optimised patch

• Twice weekly

• Preparation of clinical trial material

• Multi-billion dollar global market

• Oxycodone brand sales total $3.5 billion

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• Oxycodone use in US has risen 866% in the last decade

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Problems with Oral Oxycodone

• Common disadvantages of existing oral oxycodone are:

• GI related side effects, ie. constipation, head-aches, dizziness

• Short duration of effect. Breakthrough pain can occur within 6-8 hours

• Drug tolerance develops, requiring increasing doses over time

• Rapid absorption creates euphoria, which is the incentive for drug

  • abuse

• Oxycodone easily extracted for subsequent abuse

• Certain patient populations unable to swallow pills

• Every one of the above points are serious limitations for oral oxycodone

• Transdermal delivery addresses ALL of these serious issues

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Other TPM[®] Delivery Projects

• Creating value by leveraging TPM[®] technology and products across diverse markets

• Create global strategic alliance in the field of anti-acne therapy, topical Diclofenac (NSAID), animal health products and large molecule delivery (ie Insulin)

• Our partnerships provide:

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• Synergistic path to value

• Credibility

• Financial and technical support

• Reduce risk through diversification

• Provide commercialisation pathway

PHOSPHAGENICS

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PERSONAL CARE DIVISION

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Revenue Generating Cosmeceuticals

• TPM[®] technology underpins emerging range of Personal Care products and licensing deals

• Anti-aging and anti-cellulite products are current focus, other products in the pipeline

• In 2010, the global sales for anti-aging and anti-cellulite cosmeceutical products were +USD20 billion

• Discussions with global player in mass market sector to license/partner TPM[®] technology continue to advance

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• Strong momentum within Personal Care division

• Company owned brands building profile

• ELIXIA[®] launched in Australia May 2011

• BioElixia™ launched in Asia October 2011

• Distribution with A.S. Watson Group; +7,000 stores in Asia

• Rapid store rollout in China

• New opportunities under negotiation and/or development in

• USA

• Europe

• Korea

• Successful growth of Personal Care products will underwrite growth in supply and manufacture of TPM[®]

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Quality distribution partners

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VALUE DRIVERS

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Value Drivers

• TPM[®] Technology is a platform delivery system

• Multiple revenue opportunities exist across Pharmaceutical and Personal Care business

• All opportunities underpin growth in supply and manufacture of TPM[®]

• Pharmaceutical

• Progress with TPM[®] /oxycodone clinical trials

• License TPM[®] /oxycodone patch following completion of Phase 3 for chronic pain

• License TPM[®] /oxycodone gel product following completion of Phase 2 for topical application

• Licensing of other products, ie TPM[®] /diclofenac topical formulation

• Personal Care

• Mass market opportunity to partner/license with global player a priority

• ELIXIA[®] and BioElixia™ growth opportunities in Australia, Asia, USA and Europe

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PHOSPHAGENICS

Dr Esra Ogru Chief Executive Officer P: +61 3 9565 1119 E: eogru@phosphagenics.com