Immuron Ltd — Annual Report 2011

Aug 30, 2011

Immuron Limited Year ended 30 June 2011 Results for Announcement to the Market

				$
Revenuefrom continuing operations	Down	40.2%	To	297,891
**(Loss)**from continuing operations after tax
attributable to members	Up	36.4%	To	(2,595,179)
**Net (loss)**for the period attributable to
members of Immuron Limited	Up	36.4%	To	(2,595,179)

Dividends/distributions	Amount per	Franked amount per
	security	security
Final dividend	NIL	NIL
Interim dividend	NIL	NIL
Record date for determining entitlements to the dividend	N/A

Comments on results for the year

A summary of the loss attributable to members of Immuron Limited for the year ended 30 June 2011 is as follows

	$’000	$’000
	2011	2010
Income
Income from sale of goods and interest received	298	498
Grants received	-	62
Total Income	298	560
Expenses	3,107	2,726
Loss before income tax	(2,809)	(2,166)
Income tax benefit	214	264
Loss attributable to members of Immuron Limited	(2,595)	(1,902)

1

Income

Income for the year from sales of goods and services was $217,000 lower than the previous year. This was largely due to a reduced level of bulk sales of EV71 and rotavirus hyperimmune powder, together with a lack of export sales due to delays with the US distributor obtaining regulatory approval for Travelan sales in that country. Within Australia, there has been an overall increase in the volume of Travelan sales since the commencement of the product being distributed by Nycomed Australia with a significant increase in volumes budgeted for the 2012 financial year.

No income was earned from grant funds during the year as all research projects that were partially funded by direct grant fund have been completed. A number of current research projects are being conducted in conjunction with the University of Melbourne and Monash University and the grant monies in respect of those projects go direct to the respective universities.

Expenses

The increase in expenses of $381,000 is reflected in the following segments of the business:

R & D ( including commercialisation costs)Hyperimmune productsCorporate	407(77) 51
	381

The increase in R & D expenditures reflects the increased preclinical and clinical work being conducted at the Hadassah Medical Center in Israel together with ongoing preclinical work on influenza being performed in conjunction with the University of Melbourne. Following the successful results of the open label Phase 1/ 2(a) clinical trial for the treatment of NASH the Company had a PreIND meeting with the US Federal Drug Administration (FDA) in July 2011. The costs incurred in preparing the PreIND application for submission to the FDA amounted to $280,000 in the current financial year as against Nil for the previous year.

The Company has developed an aggressive commercialisation programme for the Travelan product in overseas markets and is in discussions with a number of parties regarding marketing and distribution rights in a number of key countries. This programme, along with seeking initial interest in our NASH product, IMM-124E following the successful phase 1 / 2(a) clinical trial, has required the engagement of consultants to develop the clinical and other ancillary data requirements to present to potential licensees and or distributors. The increase in those direct consultancy costs for the current year, together with associated travel and other costs amounted to approximately $263,000 for the year. There were no similar costs in the previous year.

2