SYNTARA LIMITED — Investor Presentation 2021

Apr 13, 2021

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Investor Presentation | 14 April 2021
Gary Phillips CEO

developing breakthrough treatments for fibrosis and inflammation

Forward looking statement

This document contains forward-looking statements, including statements concerning Pharmaxis’ future financial position, plans, and the potential of its products and product candidates, which are based on information and assumptions available to Pharmaxis as of the date of this document. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward-looking statements. All statements, other than statements of historical facts, are forward-looking statements.

These forward-looking statements are not guarantees or predictions of future results, levels of performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this document. For example, despite our efforts there is no certainty that we will be successful in developing or partnering any of the products in our pipeline on commercially acceptable terms, in a timely fashion or at all. Except as required by law we undertake no obligation to update these forwardlooking statements as a result of new information, future events or otherwise.

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Capital Raising Overview

Pharmaxis is raising ~A$4.4m at A$0.08 per share via a Private Placement

 Private Placement to institutional investors

• A$4.4m under existing placement capacity pursuant to ASX Listing Rule 7.1

• A$0.08 issue price represents a 1.3% premium to the last closing price of A$0.079 on 12 April 2021

 Use of funds

• Strengthen balance sheet. A$20m pro-forma cash balance (31 March 2021 post raising)

• Support the Company’s clinical program for myelofibrosis (PXS5505) and skin scarring (PXS-6302)

• General working capital and capital raising costs

 Strong support from new and existing substantial shareholders

• Karst Peak Capital Limited:

• Asia/Australian healthcare investor with a contrarian, fundamental, long term oriented investment approach

• committing A$3.2m to take a 8.9% stake post capital raising

• BVF Partners LP committing A$0.8m to maintain their 19.5% shareholding of Company post capital raising

 Indicative timetable*

• Trading halt

Tuesday 13 April 2021

• Placement announced and Company resumes trading Wednesday 14 April 2021

• Settlement of issue of Placement Shares Tuesday, 20 April 2021

• Allotment of issue of Placement Shares Wednesday, 21 April 2021

*The timetable above is indicative only and may be varied subject to the ASX Listing Rules

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Executive Summary

• Pharmaxis is a clinical stage drug development company targeting fibrosis and cancer

• Lead asset PXS-5505 is in phase 1c /2a trial – a breakthrough clinical program with disease modifying potential in Myelofibrosis

• PXS-5505 has further potential in oncology as an adjunct to standard of care

• Additional asset PXS-6302 is an anti-skin scarring drug in phase 1a/1c trial in 2021 – PXS-6302 to enter patient studies in commercially important dermatology indications with potential to improve function and appearance

• Specific corporate strategy to deliver non-dilutive cash and cost savings from other parts of our business

• Distribution license fees from currently un-partnered mannitol territories

• Simplification and rationalisation across business

• Post capital raising Pharmaxis is in a strong position to fund its focused clinical program

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Clinical stage
medicines
Targeting fibrosis
and cancer
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Cash and capital structure

Extended cash runway

Cash

• Cash at March A$16m

• • Proceeds of placement A$4m

• • Proforma cash balance as at March A$20m

Mannitol business forecast to go from cash burn (FY 20: EBITDA (A$4m)) to cash flow positive from FY 21 onwards (FY 26: EBITDA A$10m+)

Sale of Russian Bronchitol distribution rights effective 1 May

• €1.25m (~A$2m)** – 70% payable now, 30% in twelve months

• Cost reductions of ~A$1m per annum

Further opportunities to extend cash runway

• Potential cost savings from rationalization across business

Share capital

• Current shares on issue 397.5m

• • Placement shares 54.6m • Shares on issue on completion of placement 452.1m

• Enterprise value • Market capitalisation at $0.08 per share $36.2m

• • Less: proforma net cash ($20.0m)

• • Enterprise value $16.2m

• Lead institutional shareholders • BVF Partners LP 19.5% • Karst Peak Capital Limited 8.9%

Enterprise value

Lead institutional shareholders

• Distribution license fees from currently un-partnered Aridol and Bronchitol territories

• Pipeline supported by grants and R&D tax credit (~A$5m 2020)

• Partnering deals with pipeline assets

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Mannitol segment EBITDA only not included in proforma cash balance as at March 5
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Multiple potential value inflection points over next two years

Pipeline creates multiple opportunities

Target timelines

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Product Candidate 2021 2022 2023
Myelofibrosis Phase 1c Myelofibrosis Phase 2
PXS-5505
MDS pre-clinical MDS Phase 2
LOX Oncology
Hepatocellular Carcinoma Phase 2
Phase 1 Established scars Phase 1c
PXS-6302
LOX topical scarring
Post burns scarring Phase 1c
PXS-4699 preclinical
Preclinical compound assessment by DMD TACT
committee
Phase 2 ready programs
Evaluating grant and partnering
PXS-4728: SSAO
options
PXS-5382: LOXL2
Potential value inflection point Additional programs under evaluation
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DMD: Duchenne Muscular Dystrophy

MDS: Myelodysplastic Syndrome

Anticipated news flow: 2021 – 2022

Multiple anticipated value inflection points over next two years

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H1 2021

• Feb 22: Breakthrough drug PXS-5505 phase 1c/2a myelofibrosis study commenced recruitment

• Mar 19: Chiesi pays US$3m milestone on Pharmaxis shipment of US launch

• Mar 31: LOX topical drug PXS-6302 commenced independent investigator studies - safety

• April 14: Sale of Russian Bronchitol distribution rights

• Mannitol business simplification – realising annual cost savings

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H2 2021

CY 2022

• PXS-5505 phase 2a myelofibrosis study dose expansion stage commence

• PXS-5505 phase 2a myelofibrosis study safety and efficacy data

• First collaborations to progress PXS-5505 into clinical trials in other cancer indications

• LOX topical drug phase 1c studies burns and established scars safety and efficacy data

• Ongoing cash receipts from supply of Bronchitol for US sales

• LOX topical drug PXS-6302 progresses into independent investigator patient studies - burns and established scars

• Feedback from global advisory committee (TACT) on development fast tracking for Duchenne muscular dystrophy clinical trials.

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Pipeline opportunities
in fibrosis and inflammation

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PXS-5505 Breakthrough clinical program in
myelofibrosis prioritised into phase 1c/2

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First in class PXS-5505 IND approved and in the clinic

Novel anti fibrotic approach with broad applications in difficult to treat cancers

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Myelofibrosis: Orphan Disease with high unmet need forecast to exceed US$1b

• Drug with disease modifying potential patent application filed 2018

• Six month tox and Phase 1 studies completed 1H 2020

• FDA orphan status granted July 2020

• IND approved August 2020

• Phase 1/2a proof of concept myelofibrosis study commenced recruitment Q1 21

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Adjunct to best standard of care in multiple cancers

• LOX inhibition synergistic with current standard of care and potentially pharma development pipeline in many stromal cancers

• Academic and clinical interest in additional indications including; o Myelodysplastic syndrome ( MDS) ; liver carcinoma (Hepatocellular carcinoma); pancreatic cancer; glioblastoma

• International studies facilitated by IND approval and availability of drug product

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Myelofibrosis background

A rare type of bone marrow cancer that disrupts your body's normal production of blood cells

KEY FACTS

Primary Myelofibrosis is caused by a build up of scar tissue (fibrosis) in bone marrow reducing the production of blood cells:

• Driven by clonal mutations of a hematopoietic stem cell (JAK, MPL, CALR genes)

Affects 15 in 1m people worldwide

• Reduced red blood cells can cause extreme tiredness (fatigue) or shortness of breath

• Reduced white blood cells can lead to an increased number of infections

• 5 Years Median survival

• Reduced platelets can promote bleeding and/or bruising

• Spleen increases blood cell production and becomes enlarged

Age of onset 50 – 80

• Other common symptoms include fever, night sweats, and bone pain

Standard of Care; JAK inhibition

11% transformation to leukemia

• Symptomatic relief plus some limited survival improvement. 75% discontinuation at 5 years

• Median overall survival is 14 – 16 months after discontinuation

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Mode of action in myelofibrosis Disease modifying potential as monotherapy and on top of standard of care

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Unique mechanism of action
targeting the extracellular matrix
Disease modifying
potential
Designed to provided efficacy on top of
existing standard of care
AND potentially pipeline drugs
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“Specific targeting of ECM dysregulation to prevent and diminish MF may prove the frontline of research and therapy development in PMF with the greatest promise of relieving symptoms and extending life expectancy of patients” Blood Cancer Journal (2017) 7, e525; doi:10.1038/bcj.2017.6

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PXS-5505; LOX inhibitor with promising profile Pre clinical and clinical studies strongly support entry into patient studies

PXS-5505 attenuates hallmarks of primary myelofibrosis in mice.

PXS-5505 – Phase 1 SAD

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Treatment with
PXS-5505
significantly
reduced reticulin
fibrosis
( = p<0.001)
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“JAK inhibition alone is insufficient in the treatment of patients with myelofibrosis; it is not associated with changes in underlying disease biology and it can worsen blood counts, leading to high drug discontinuation rates over time. The trial utilizing PX-5505 is supported by a sound scientific rationale, based on pre-clinical work demonstrating the importance of lysyl oxidase in the development of myelofibrosis. PXS-5505 has a unique mechanism of action that has the potential for disease modification. I am looking forward to seeing the effect of this drug in clinical trials.”[1]

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• Good safety profile with 6 month tox studies complete

• Dose dependant 24 hour inhibition of LOX enzymes from single once a day dose in humans

• No safety signal seen in phase 1 trials

• 2018 patent application filing date

Ref Graph1: Leiva et al. Intl J Hemat 2019. https://doi.org/10.1007/s12185-019-02751-6

PXS-5505 Phase 1/2a Trial in myelofibrosis

6 month monotherapy study with meaningful safety and efficacy endpoints

STUDY POPULATION

DESIGN

JAK-inhibitor unsuitable* Phase 1/2a open primary MF or post-ET/PV label study to MF patients with: evaluate safety, PK/PD, and efficacy

• INT-2 or High risk MF requiring therapy

• Symptomatic

• BMF Grade 2 or greater

TREATMENT COHORT

ENDPOINTS

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Primary: Safety TEAEs

Dose escalation: PXS-5505 3 ascending doses, 4 weeks (n = 3 to 6 subjects/dose)

3 ascending doses, 4 weeks Secondary: (n = 3 to 6 subjects/dose) PK/PD BMF Grade IWG Response SVR Cohort expansion: Haematology PXS-5505 (n = 24 subjects) 26 weeks Symptom score

FDA granted orphan drug designation July 20 and IND approved August 2020

Multiple sites across 3 countries to enhance trial recruitment (USA, Korea, Australia)

Study budget (~US$5m)

Study recruitment commenced Q1 2021, study targeted to conclude H2 2022

*Unsuitable = ineligible for JAKi treatment, intolerant of JAKi treatment, relapsed during JAKi treatment, or refractory to JAKi treatment. JAKi – Janus Kinase inhibitor, MF myelofibrosis, ET Essential Thrombocythaemia, PV polycythaemia vera, INT intermediate,

BMF bone marrow fibrosis, RP2D recommended phase 2 dose, TEAE treatment emergent adverse event, PK pharmacokinetics, PD pharmacodynamics, SVR spleen volume response, IWG International Working Group Myeloproliferative Neoplasms

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Myelofibrosis – examples of other programs

PXS-5505 unique mechanism of action designed for disease modification and good tolerability

Company	Market cap(1)	Bourse	Asset	Description	Clinical phase
	$1.2bn	Nasdaq	KER-050	TGF-β ligand trap	Phase 2
	$1.1bn	Nasdaq	CPI-0610	BET inhibitor	Phase 3
	$0.7bn(2)	n.a. – private	KRT-232	MDM2 antagonist	Phase 3
	$0.5bn	Nasdaq	Imetelstat	Telomerase inhibitor	Phase 3
	$24m (A$31m)	ASX	PXS-5505	LOX inhibitor	Phase 1c/2 commenced

PXS-5505 unique mechanism of action expected to deliver additional efficacy on top of existing standard of care and/or known pipeline drugs without adding to tolerability issues

Notes: (1) Approximate market cap as at 22 March 2021

Pipeline opportunities
in fibrosis and inflammation

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PXS-5505 Significant opportunity in other cancers;

-
 Myelodysplastic Syndrome

-
 Hepatocellular Carcinoma

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PXS-5505: Significant opportunity in other cancers

Global academic and clinical interest in LOX inhibition drives development plan

Normal tissue

Pharmaxis Research Collaborations

Myelodysplastic syndrome

Germany

Liver Cancer

Rochester (NY)

Pancreatic Cancer

Sydney, Rochester (NY)

Melanoma and glioblastoma Houston

Head and Neck Cancer

Boston, (MA)

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Collagen
Tumour with fibrotic tissue has
• increased tissue stiffness
• Increased interstitial pressure
Increased Increased
EMT angiogenesis
Increased Decreased
Increased
Invasion drug perfusion
tumour growth
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Multiple expected benefits from inhibition of LOX enzymes

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EMT: epithelial to mesenchymal transition 16
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Myelodysplastic Syndrome (MDS)

A group of bone marrow cancers that disrupt normal production of blood cells

KEY FACTS

• A group of malignant hematopoietic neoplasms characterized by Bone marrow failure with resultant cytopenia and related complications

 Current standard of care

Affects ~40 in 100,000 people > 70 years

• Allogeneic stem cell transplantation

• Immunomodulatory drug lenalidomide,

• Advanced disease: DNA hypomethylating agents (HMA), azacitidine (AZA), and decitabine

50% to 60% of the patients will die from complications of the disease

New US diagnoses per annum ~50,000

 Pre clinical evidence

• Unpublished data from Pharmaxis scientific collaboration demonstrating strong proof of concept

 Proposed clinical strategy

30% transformation to Acute Myeloid Leukemia

• Build on myelofibrosis strategy in hematological diseases

• 6 month proof of concept study on top of standard of care

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Hepatocellular Carcinoma (HCC)

4th leading cause of cancer-related mortality worldwide with a 19.6% 5-year relative survival

 Primary liver malignancies have doubled in incidence over the last two decades.

 HCC is a stromal (fibrotic) tumour

• Accumulation of collagen crosslinks increases stromal stiffening and interstitial fluid pressure (IFP) reducing delivery of chemotherapy and immunotherapy.

 Etiology

• Extrinsic factors e.g. Virus infections

• Intrinsic factors e.g. auto immune diseases, fatty infiltration, genetics

 Current standard of care

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 Pre-clinical data

• High LOX expression associated with reduced survival

• LOX is up-stream regulator of VEGF expression and inhibition of this enzyme could potentiate the intratumoral effects of anti-VEGF therapy

• Combination anti-PD-1 therapy with LOX inhibition has demonstrated synergistic decrease in tumor growth

 Proposed clinical strategy

Enhance the intratumoral response to standard of care through the addition of LOX inhibition in human HCC

• 6 month study combination PXS-5505 on top of standard of care in newly diagnosed unresectable or metastatic hepatocellular carcinoma

• Tyrosine kinase inhibitors

• PD-L1 inhibitors + anti-VEGF

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Pipeline opportunities
in fibrosis and inflammation
PXS-6302 Topical LOX inhibition for

scarring

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Hypertrophic and keloid scarring

Cutaneous scarring following skin trauma or a wound is a major cause of morbidity and disfigurement

KEY FACTS

Collagen turnover in keloid

• Mechanisms underlying scar formation are not well established; prophylactic and treatment strategies remain unsatisfactory

• Current standard of care includes:

100m patients develop scars in the developed world alone each year as a result of elective operations and operations after trauma

Hypertrophic scars and keloids are fibroproliferative disorders that may arise after any deep cutaneous injury caused by trauma, burns, surgery, etc.

Hypertrophic scars and keloids are cosmetically and functionally problematic significantly affecting patients’ quality of life

The increase in extracellular matrix is a key factor and this depends on collagen and elastin cross-linking to make them less degradable.

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• Corticosteroids

• Surgical revision

• Cryotherapy

• Laser therapy

• 5-fluorouracil

• Pre clinical evidence

• Unpublished data from Pharmaxis scientific collaboration demonstrating strong proof of concept

• Treatment with PXS-6302 monotherapy demonstrates cosmetic and functional improvements to the scar

 Clinical strategy

• 3 month placebo controlled study in patients versus current standard of care

• Initial patient groups will include those with established scars and those with scarring subsequent to burn injury

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Further non core pipeline opportunities in fibrosis and inflammation Leveraging global leadership position in amine oxidase enzymes to deliver targeted drugs for fibrosis and inflammation

Product Candidate Indications Pre- clinical	Product Candidate Indications Pre- clinical	Product Candidate Indications Pre- clinical	Phase 1	Phase 2 Next Steps	Phase 2 Next Steps
SSAO; PXS-4728	Repurposing for neuro inflammatory disease				• Partnering discussions; phase 2 protocol and funding discussions with independent investigators
LOXL2; PXS-5382	Chronic fibrotic disease e.g. chronic kidney disease, idiopathic pulmonary fibrosis				• Partnering discussions; phase 2 protocol and funding discussions with independent investigators
SSAO/MAOB; PXS-4699	Anti inflammatory Muscular Dystrophy				• $1m matched funding grant • DMD TACT committee Q2 2021 • Explore funding opportunities to advance to the clinic H1 2022
SSAO/MPO; PXS-5370	Anti inflammatory Multiple indications				• Investigating funding opportunities including grants

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Mannitol respiratory business

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Mannitol respiratory business (Bronchitol® and Aridol®)

Transformational impact of FDA Bronchitol approval (Oct 2020) – business segment cash flow positive from FY 2021 onwards

Sales

• Mannitol respiratory sales forecast to double by FY 2022 with Bronchitol > 75% of sales

• Strong longer term growth contribution from US

• Growth in Ex-US markets including Russia

Expenses

• Relatively fixed production cost base

• Potential for simplified business model to reduce costs

Segment EBITDA

• Forecast positive EBITDA from FY 2021 onwards (before potential cost savings).

• US volumes contribute to mannitol segment generating profit

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Bronchitol in US

• US CF market >65% of global market in value

US market doubles global cystic fibrosis patient opportunity with attractive pricing

• Chiesi approval /launch milestone payments US$10m received FY 2021

• US sales commenced in Q2 CY 2021

• High teens % of Chiesi sales + supply contract - ~20% of Chiesi US Bronchitol net sales flow directly to the Pharmaxis bottom line

• Three sales milestones totaling US$15m payable on achieving annual sales thresholds

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Appendices

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Novel, small molecule medicines focused on inflammation, fibrotic diseases and cancer

In house discovery and development capability

Experienced team delivering stream of novel drugs to the clinic

Platform technology drives pipeline of clinical assets

Multiple opportunities from global leadership in amine oxidase enzymes

Cash flow positive manufacturing business

FDA approval for Cystic Fibrosis drug transformative with Pharmaxis manufacturing business now cash flow positive

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Clinical stage
medicines
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Targeting Fibrosis and Cancer

Lead asset PXS-5505 in phase 1c/2a trial

Breakthrough clinical program with disease modifying potential in Myelofibrosis

Broad potential for PXS-5505 in oncology

Global scientific and clinical collaborations to extend value of PXS5505 in further oncology indications

Anti skin scarring drug in phase 1a/1c trial in 2021

PXS-6302 to enter patient studies in commercially important dermatology indications

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Experienced Scientific Leadership Team

Significant global experience in drug development, commercialisation and partnering

In senior management

On the board

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Wolfgang Jarolimek – Drug Discovery

• more than 20 years’ experience in pharmaceutical drug discovery and published more than 30 peer reviewed articles

• previously Director of Assay Development and Compound Profiling at the GlaxoSmithKline Centre of Excellence in Drug Discovery in Verona, Italy

• spent 8 years as post-doc at the Max-Plank Institute in Munich, Germany; Baylor College of Medicine, Houston, Texas; Rammelkamp Centre, Cleveland Ohio; and University of Heidelberg, Germany

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Gary Phillips – CEO and Managing Director

more than 30 years of operational management experience in the pharmaceutical and healthcare industry in Europe, Asia and Australia joined Pharmaxis in 2003 and was appointed Chief Executive Officer in March 2013 at which time he was Chief Operating Officer

• 

previously held country and regional management roles at Novartis – Hungary, Asia Pacific and Australia

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Dieter Hamprecht – Head of Chemistry

• more than 20 years experience with small molecule and peptide drug discovery, contributed to greater than 10 drug candidates brought to development and co-inventor of 50 patent families, co-author of 30+ scientific publications

 previously Managing Director – Boehringer Ingelheim’s research group in Milan

• senior medicinal chemistry positions at GSK

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Kathleen Metters – Non Executive Director

former Senior Vice President and Head of Worldwide Basic Research for Merck & Co. with oversight of all the company’s global research projects. in a subsequent role at Merck &Co she led work on External Discovery and Preclinical Sciences

• 

former CEO of biopharmaceutical company Lycera Corp

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Brett Charlton - Medical

 more than 25 years experience in clinical trial design and management  author of more than 80 scientific papers  founding Medical Director of the National Health Sciences Centre  previously held various positions with the Australian National University, Stanford University, the Baxter Centre for Medical Research, Royal Melbourne Hospital, and the Walter and Eliza Hall Institute

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Neil Graham – Non Executive Director

• former VP of immunology and inflammation responsible for strategic program direction overseeing pipeline development and clinical programs at Regeneron (REGN:US)

• former SVP program and portfolio management at Vertex Pharmaceuticals

• former Chief Medical Officer at Trimeris Inc and Tibotec Pharmaceuticals

Read more on the Pharmaxis website

Board

Significant international pharmaceutical experience

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Malcolm McComas – Chair

• former investment banker and commercial lawyer

• former MD Citi Group

• has worked with many high growth companies across various industry sectors and has experience in equity and debt finance, acquisitions and divestments and privatisations.

• joined Pharmaxis Board in 2003

• chair since 2012

Will Delaat – Non-Executive Director

• more than 35 years’ experience in the global pharmaceutical industry

• former CEO of Merck Australia

• former chair of Medicines Australia and Pharmaceuticals Industry Council

• joined Pharmaxis Board in 2008

Dr Kathleen Metters – Non-Executive Director

• former Senior Vice President and Head of Worldwide Basic Research for Merck & Co. with oversight of all the company’s global research projects.

• in a subsequent role at Merck &Co she led work on External Discovery and Preclinical Sciences

• former CEO of biopharmaceutical company Lycera Corp

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Gary Phillips – Chief Executive Officer

• more than 30 years of operational management experience in the pharmaceutical and healthcare industry in Europe, Asia and Australia joined Pharmaxis in 2003 and was appointed Chief Executive Officer in March 2013 at which time he was Chief Operating Officer

previously held country and regional management roles at Novartis – Hungary, Asia Pacific and Australia

Dr Neil Graham – Non-Executive Director

former VP of immunology and inflammation responsible for strategic program direction overseeing pipeline development and clinical programs at Regeneron (REGN:US)

former SVP program and portfolio management at Vertex Pharmaceuticals former Chief Medical Officer at Trimeris Inc and Tibotec Pharmaceuticals

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Read more on the Pharmaxis website

Drug development capability

Established team in Drug Discovery and Clinical Trials with broad experience across multiple regulatory agencies

2015-2021

Organisation

• Leadership with extensive drug discovery/development experience from big pharma and biotech

• Extensive in house capabilities o On site laboratories

• Leveraged with international network of external contract organisations

• Numerous collaborations with leading academic institutions in Australia and world-wide in pharmacology and medicinal chemistry

• High scientific reputation through peer-reviewed publications

• Direct management of regulatory interaction with FDA, EMA, etc.

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7 Drugs
entered
pre-clinical
12
testing
publications
4 Drugs
entered
phase 1
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3 Drugs cleared phase 1 / IND ready

Strategy

• Focus on inflammation and fibrosis/cancer driven diseases with high unmet medical need

• Leverage global leading position in amine oxidase chemistry and biology

• Create first or best in class small molecule inhibitors with biomarker assays for early validation of clinical hypothesis in phase 1 trials

• Protect intellectual property by focused chemical matter, use and biomarker patents

• Capture advantages of Australian location:

• Accelerated (and lower cost) Phase 1 entry

• Australian Government R&D tax credit system

2 Drugs in phase 2

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Financials

Cash

Periods ended (A$’000)	Dec 2020 HY	Dec 2019 HY	Jun 2020 FY	Jun 2019 FY
Proforma cash
Cashperiod end	18,249	25,864	14,764	31,124
R&D tax credit	-	-	5,048	6,221
Chiesi US FDA milestonepayments	~4,0001	-	~14,000	-
	~$22,249	$25,864	~$33,812	$37,345
Cash Flow Statement Highlights
Operations
Receipts from customers	3,602	3,973	7,775	6,893
R&D tax incentive	5,099	6,221	6,271	-
Chiesi milestone	9,949	-	-	-
Payments to suppliers,employees etc	(13,602)	(13,886)	(27,330)	(26,691)
Total operations	5,048	(3,692)	(13,284)	(19,798)
Investing (capex)	(281)	(328)	(574)	(981)
Finance leasepayments2	(1,147)	(1,111)	(2,232)	(1,593)
Financingagreementpayments3	(135)	(129)	(270)	(254)
Share issue - net	-	-	-	22,677
Net increase(decrease)in cash	$3,485	($5,260)	($16,360)	$51

1. US$3m milestone earned February 2021 2. Lease over 20 Rodborough Rd (to 2024) – total liability at 31 December 2020: $7.1 million

2. NovaQuest financing – not repayable other than as % of US & EU Bronchitol revenue – up to 7 years

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Refer to Quarterly Shareholder Updates, 2020 Annual Report and December 2020 Half Year Report for complete financial information 29
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Financials

Income statement highlights

	Periods ended (A$’000)	Dec 2020 HY	Dec 2019 HY	Jun 2020 FY	Jun 2019 FY
	Segment Financials
	New drug development
	Oral LOX (external costs)	(1,323)	(1,400)	(3,124)	(3,833)
	Otherprogram external costs(net ofgrants)	(775)	(1,078)	(3,315)	(5,108)
	Employee costs	(1,799)	(1,529)	(3,373)	(2,837)
	Overhead	(238)	(281)	(460)	(606)
	R&Dtax credit	148	259	5,159	5,962
	EBITDA	(3,987)	(4,029)	(5,113)	(6,764)
	Mannitol respiratory business
	Sales	3,086	3,259	7,027	5,676
	Other revenue and income	10,098	10	20	27
		13,184	3,269	7,047	5,703
	Expenses – employee costs	(2,912)	(3,037)	(5,855)	(6,083)
	Expenses–manufacturing purchases	(1,172)	(746)	(1,456)	(1,689)
	Expenses–other	(2,376)	(1,755)	(3,713)	(2,944)
	EBITDA	6,724	(2,269)	(3,977)	(5,013)
	Corporate– EBITDA	(2,024)	(1,701)	(2,990)	(3,874)
	Total Adjusted EBITDA	713	(7,999)	(12,080)	(15,651)
	Net profit (loss)	$46	($10,319)	($13,943)	($20,058)

Important Notice and Disclaimer

The following notice and disclaimer applies to this investor presentation (Presentation) and you are therefore advised to read this carefully before making any other use of this Presentation or any information contained in this Presentation. By accepting this Presentation you agree to be bound by the limitations, contained within it.

This Presentation has been prepared by Pharmaxis Ltd (ACN 082 811 630) (Company) in connection with the Company’s proposed placement to institution and professional investors (Placement) of new fully paid ordinary shares (New Shares).

Important Notice and Disclaimer

NOT AN OFFER

This Presentation is not a prospectus, product disclosure statement, disclosure document or other offering document under Australian law (and will not be lodged with the Australian Securities and Investments Commission (ASIC)) or any other law. This presentation is for information purposes only and is not an offer or an invitation to acquire New Shares, securities or any other financial products in any jurisdiction in which, or to any person to whom, it would be unlawful to make such an offer or invitation. This Presentation does not form any part of any contract for the acquisition of New Shares.

This Presentation may not be distributed or released in the United States. This Presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. The New Shares to be offered and sold under the Offer have not been, and will not be, registered under the U.S. Securities Act of 1933 (the U.S. Securities Act) or the securities laws of any state or other jurisdiction of the United States. Accordingly, the New Shares may not be offered or sold, directly or indirectly, to any person in the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and any other applicable U.S. state securities laws.

By accepting this Presentation, you represent and warrant that you are entitled to receive such Presentation in accordance with the above restrictions and agree to be bound by the limitations contained herein.

The distribution of this Presentation (including an electronic copy) may be restricted by law in certain other countries. You should read the important information set out in the ‘Foreign selling restrictions' section to this Presentation. Failure to comply with these restrictions may constitute a violation of applicable securities laws.

Each recipient of this presentation should make their own enquiries and investigations regarding all information included in this presentation including the assumptions, uncertainties and contingencies which may affect the Company’s future operations and the values and the impact that future outcomes may have on the Company.

Important Notice and Disclaimer

NOT FINANCIAL PRODUCT ADVICE

This Presentation is for information purposes only and is not financial product advice or investment advice, nor a recommendation to acquire New Shares and has been prepared without taking into account the objectives, financial situation and needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek appropriate advice, including financial, legal and taxation advice appropriate to their jurisdiction. The Company is not licensed to provide financial product advice in respect of the New Shares. SUMMARY INFORMATION

This Presentation contains summary information about the Company and its activities which is current only as at the date of this Presentation (unless otherwise stated). The information in this Presentation is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in the Company or that would be required to be included in a prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act. In particular, the Company’s business is subject to a number of risk factors both specific to its business and of a general nature. The Company’s business, financial condition and results of operations could be materially and adversely affected by the occurrence of any of the risks associated with its business. The Company’s historical information in this Presentation is, or is based upon, information that has been released to the Australian Securities Exchange (ASX). This Presentation should be read in conjunction with the Company’s other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au. Recipient’s should carefully consider this information in light of their own investment objectives and financial circumstances and should seek professional advice from their stockbroker, solicitor, accountant, or other qualified professional advisor.

Important Notice and Disclaimer

PAST PERFORMANCE

Past performance and pro forma historical financial information in this Presentation is given for illustrative purposes only and is not an indication of future performance, including future share price information. FINANCIAL DATA

All dollar values are in Australian dollars ($ or AUD) unless stated otherwise. Investors should note that this Presentation includes both audited and unaudited financial information for various periods. Information that has not been audited is based on management estimates and not on financial statements prepared in accordance with applicable statutory requirements. Accordingly, recipients should treat this information with appropriate caution.

Investors should also be aware that certain financial data included in this Presentation may be ‘non-IFRS financial information’ under Regulatory Guide 230 Disclosing non-IFRS financial information published by the Australian Securities and Investments Commission or ‘non-GAAP financial measures’ under Regulation G of the US Securities Exchange Act of 1934. The non-IFRS financial information and these non-GAAP financial measures do not have a standardised meaning prescribed by AIFRS and, therefore, may not be comparable to similarly titled measures presented by other entities, nor should they be construed as an alternative to other financial measures determined in accordance with AIFRS. Investors are cautioned, therefore, not to place undue reliance on any non-IFRS financial measures included in this Presentation.

Important Notice and Disclaimer

DISCLAIMER

No party other than the Company has authorised or caused the issue, lodgement, submission, dispatch or provision of this Presentation, or takes any responsibility for, or makes or purports to make any statements, representations or undertakings in this Presentation. No person is authorised to give any information or make any representation in connection with the Placement which is not contained in this Presentation. Any information or representation not contained in this Presentation may not be relied upon as having been authorised by the Company in connection with the Placement. While the information in this Presentation has been prepared in good faith and with reasonable care, no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimate, opinions or other information contained in the Presentation.

To the maximum extent permitted by law, the Company and its advisers, related bodies corporate, directors, officers, employees, representatives and agents:

• exclude and disclaim all liability (including, without limitation, any liability arising from fault, negligence or negligent misstatement) for any direct or indirect expenses, losses, damages or costs incurred as a result of participation in the Placement or the information in this Presentation being inaccurate or incomplete in any way for any reason;

• disclaim any obligations or undertaking to release any updates or revision to the information in this Presentation to reflect any change in expectations or assumptions; and

• make no representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of information in this Presentation and take no responsibility for any part of this Presentation or that this Presentation contains all material information about the Company or that a prospective investor or purchaser may require in evaluating a possible investment in the Company or acquisition of shares in the Company, or likelihood of fulfilment of any forward-looking statement or any event or results expressed or implied in any forward-looking statement.

Important Notice and Disclaimer

FOREIGN SELLING RESTRICTIONS

This document does not constitute an offer of new ordinary shares (New Shares) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Australia except to the extent permitted below.

Hong Kong

The contents of this document have not been reviewed or approved by any regulatory authority in Hong Kong. The information in this document has not been, and will not be, registered as a prospectus in Hong Kong under the Companies Ordinance (Cap 32) (CO) nor has it been authorised by the Securities and Futures Commission (SFC) in Hong Kong pursuant to the Securities and Futures Ordinance (Cap 571) of the Laws of Hong Kong (SFO). Accordingly, the document must not be issued, circulated or distributed in Hong Kong other than:

(i) to “professional investors” within the meaning of SFO and any rules made under that ordinance (HK Professional Investors); or

(ii) in other circumstances which do not result in the information in this presentation being a “prospectus” as defined in the CO nor constitute an offer to the public which requires authorisation by the SFC under the SFO.

Unless permitted by the securities laws of Hong Kong, no person may issue or have in its possession for issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document relating to New Shares, which is directed at, or the content of which is likely to be accessed or read by, the public of Hong Kong other than with respect to New Shares which are or are intended to be disposed of only to persons outside Hong Kong or only to HK Professional Investors. No person allotted New Shares may sell, or offer to sell, such New Shares to the public in Hong Kong within six months following the date of issue of such New Shares. This offering is not an offer for sale to the public in Hong Kong and it is not the intention of the Company that the New Shares be offered for sale to the public in Hong Kong.

United States

This document may not be distributed or released in the United States.

This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States or any other jurisdiction in which such an offer would be illegal.

The New Shares have not been, and will not be, registered under the U.S. Securities Act or the securities laws of any state or other jurisdiction of the United States. Accordingly, the New Shares may not be offered or sold directly or indirectly in the United States, unless they have been registered under the U.S. Securities Act (which the Company has no obligation to do or procure) or they are offered and sold in a transaction exempt from, or not subject to, the registration requirements of the U.S. Securities Act and any other applicable U.S. state securities law.

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developing breakthrough treatments for fibrosis and inflammation Pharmaxis Ltd ABN 75 082 811 630 www.pharmaxis.com.au

Contacts
Gary Phillips
Chief Executive Officer
gary.phillips@pharmaxis.com.au

David McGarvey
Chief Financial Officer
david.mcgarvey@pharmaxis.com.au