AVECHO BIOTECHNOLOGY LIMITED — Capital/Financing Update 2012

Oct 29, 2012

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Company Announcement

Phosphagenics Licenses TPM[® ] Platform to Indian Pharmaceutical Company

• License of new injectable antibiotic formulation using TPM[®]

• Further application for Phosphagenics’ platform technology

• Phosphagenics to receive upfront fee, royalties

30 October 2012, Melbourne, Australia: Australian drug delivery technology company Phosphagenics Limited (ASX: POH, OTCQX: PPGNY) has licensed an injectable antibiotic product, harnessing its proprietary TPM[®] platform technology, to Agila Specialties Private Limited (Agila). Agila is a wholly owned subsidiary of the listed Indian pharmaceutical company, Strides Arcolab (Strides).

Agila has one of the largest steriles capacity in India and amongst the largest lyophilization (freeze drying) capacities in the world with its operations spread over nine world-class manufacturing facilities around the globe. The company is focused on developing and commercialising new products for key therapeutic markets targeting antiinfectives, oncology, central nervous system (CNS), gastro-intestinal (GI), ophthalmics and peptides.

Under the terms of the exclusive global license agreement, Phosphagenics will license the TPM[®] technology to Agila for its use in an antibiotic injectable product. Agila will be responsible for the development and pay the costs required to register and commercialise the product including all necessary clinical studies.

Phosphagenics will receive an upfront payment as well as undisclosed royalties based on net sales. The size of the antibiotic injectables market is several billion dollars annually.

Company CEO, Dr Esra Ogru, said this agreement demonstrates the versatility of the TPM[®] platform technology, paving the way for further opportunities in the injectable market.

“Strides and its subsidiary, Agila, have state-of-the-art manufacturing capabilities and have had tremendous success in bringing new products to market. This will be the first time TPM[®] will be used in an injectable formulation.”

Phosphagenics Limited ACN 056 482 403 ABN 32 056 482 403

11 Duerdin Street, Clayton VIC 3168 PO Box 1415, Clayton South MDC VIC 3169 Australia Tel: +61 (0)3 9565 1119 Fax: +61 (0)3 9565 1151

Web: www.phosphagenics.com Email: info@phosphagenics.com

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Enquiries:

Dr Esra Ogru Chief Executive Officer Phosphagenics Limited +61 3 9565 1119

David Segal Investor Relations Manger Phosphagenics Limited +61 3 9565 1103

Rudi Michelson Monsoon Communications +61 3 9620 3333

About Phosphagenics Limited

Phosphagenics Limited is commercialising drug delivery applications based on its novel transdermal (drugs administered via skin) TPM[®] – Targeted Penetration Matrix technology. TPM[®] is a patient friendly and cost effective system used to deliver proven pharmaceutical and nutraceutical products.

The lead product advancing through clinical trials is an oxycodone matrix system for the relief of chronic pain.

Phosphagenics’ shares are listed on the Australian Securities Exchange (POH) and its ADR – Level 1 program in the US is with The Bank of New York Mellon (PPGNY).

www.phosphagenics.com www.elixia.com.au

About Agila Specialties Private Limited

Agila, Specialties business of Strides Arcolab is focused on key domains such as oncolytics, penems, pencillins, cephalosporins, ophthalmics, peptides and biosimilars and operates from 9 world-class global manufacturing facilities, including one of the largest steriles capacity in India and amongst the largest lyophilization (freeze drying) capacities in the world. Agila’s marketing network covers 70 countries and it has partnerships with some of the world’s leading pharmaceutical companies for both developed and emerging markets.

About Strides Arcolab

Strides Arcolab, listed on the Bombay Stock Exchange Limited (532531) and National Stock Exchange of India Limited (STAR), is a global pharmaceutical company headquartered in Bangalore, India that develops and manufactures a wide range of IPled niche pharmaceutical products with an emphasis on sterile injectables.

The company has 14 manufacturing facilities across 6 countries with presence in more than 75 countries in developed and emerging markets. Manufacturing is ably supported by a 350-scientist strong global R&D Centre located in Bangalore.

Additional information is available at the company’s website at www.stridesarco.com.

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