PERCHERON THERAPEUTICS LIMITED — Interim / Quarterly Report 2004

Oct 19, 2003

Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 34/3/2000. Amended 30/9/2004

Name of entity

ANTISENSE THERAPEUTICS LIMITED

ABN

41 095 060 745

Quarter ended ("current quarter")

30 SEPTEMBER 2003

Consolidated statement of cash flows

			Current quarter	Year to date
Cash flows related to operating activities			$(3$ months)
		$A'000	$A'000
1.I	Receipts from customers		461	461
1.2	Payments for	(a) staff costs	(370)	(370)
		(b) advertising and marketing
		(c) research and development	(699)	(699)
		(d) leased assets
		(e) other working capital	(183)	(183)
1.3	Dividends received
1.4	received	Interest and other items of a similar nature	103	103
1.5		Interest and other costs of finance paid
1.6	Income taxes paid
1.7		Other (provide details if material)
		$-$ R & D Tax refund received from ATO	375	375
	Net operating cash flows		(313)	(313)

+ See chapter 19 for defined terms.

		Current quarter$A'000	Year to date(three months)$A'000
1.8	Net operating cash flows (carried forward)	(313)	(313)
1.9	Cash flows related to investing activitiesPayment for acquisition of:
	(a) businesses (item 5)
	(b) equity investments
	(c) intellectual property(d) physical non-current assets
	(e) other non-current assets
1.10	Proceeds from disposal of:
	(a) businesses (item 5)
	(b) equity investments
	(c) intellectual
	property(d) physical non-
	current assets
	(e) other non-currentassets
1.11	Loans to other entities
1.12	Loans repaid by other entities
1.13	Other (provide details if material)	w.
	Net investing cash flows
1.14	Total operating and investing cash flows	(313)	(313)
	Cash flows related to financing activities
1.15	Proceeds from issues of shares, options, etc.	4,001	4,001
1.16	Proceeds from sale of forfeited shares
1.17	Proceeds from borrowings
1.181.19	Repayment of borrowingsDividends paid
1.20	Other - costs relating to issue of shares	(188)	(188)
	Net financing cash flows	3,813	3,813
	Net increase (decrease) in cash held	3,499	3,499
1.21	Cash at beginning of quarter/year to date	6,546	6,546
1.22	Exchange rate adjustments to item 1.20
1.23	Cash at end of quarter	10,045	10,045

+ See chapter 19 for defined terms.

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

Current quarter$A'000
463

1.26 Explanation necessary for an understanding of the transactions Item 1.24 Reflects the following related party payments:

• (a) Total amounts paid to directors include director's fees, salaries and superannuation of $125,217 (YTD: $125,217).
• (b) Dr Stanley Crooke, a director of the Company is also a director of Isis Pharmaceuticals Inc ("Isis"). A total amount of $108,994 (YTD: $108,994) was paid to Isis for research and development related services provided by them to Antisense Therapeutics Limited ("ATL").
• (c) Professor George Werther, a director of the company, is an executive officer of the Murdoch Childrens Research Institute ("MCRI"). An amount of $229,070 (YTD: $229,070) was paid to the MCRI for research services performed by them for ATL.

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Not applicable.

$2.2^{\circ}$ Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest Not applicable.

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

		Amount available$A'000	Amount usedSA'000
-3.1	Loan facilities	w
-3.2	Credit standby arrangements	w

+ See chapter 19 for defined terms.

Reconciliation of cash

Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.		Current quarterSA'000	Previous quarter$A'000
4.1	Cash on hand and at bank	1.545	1,546
4.2	Deposits at call	8,500	5,000
4.3	Bank overdraft
4.4	Other (provide details)
	Total: cash at end of quarter (item 1.23)	10,045	6,546

Acquisitions and disposals of business entities

		Acquisitions( Item 1.9(a) )	Disposals( liem 1.10(a) )
5.1	Name of entity	Not applicable	Not applicable
5.2	Place of incorporationor registration
5.3	Consideration foracquisition or disposal
5.4	Total net assets
5.5	Nature of business

Compliance statement

• This statement has been prepared under accounting policies which comply with accounting $\mathbf{1}$ standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

Sign here:	Natalie Korchev	Date: 20 October 2003
	Company secretary

Print name: Natalie Korchev

+ See chapter 19 for defined terms.

Notes

$\bullet$

• $\mathbf{1}$ . The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $2.$ The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.
  • reconciliation of cash flows arising from operating activities to 6.2 $\bullet$ operating profit or loss
    • $9.2$ - itemised disclosure relating to acquisitions
    • 9.4 - itemised disclosure relating to disposals
  • $12.1(a)$ policy for classification of cash items $\bullet$
  • disclosure of restrictions on use of cash $12.3$ $\bullet$
  • $13.1$ - comparative information $\bullet$
• $3.$ Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

+ See chapter 19 for defined terms.