Avita MedicalAvita MedicalAvita MedicalAvita MedicalAnnual General MeetingAnnual General Meeting

11 November 2008

Perth, Australia ,

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Corporate OverviewCorporate Overview

N M t• New Management• New Sales Team• New Sales Team• New Operation TeamNew Operation Team

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Corporate OverviewCorporate Overview

R l h d• Relaunched• Refocused• Refocused• RevitalizedRevitalized

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Corporate OverviewCorporate Overview• Global, multi-enterprise medical

device companyp y• Expanded entity created through

acquisition of Visiomed by C3acquisition of Visiomed by C3• Two product areas in large and

idl i k trapidly growing markets:• Regenerative medicineRegenerative medicine• Respiratory medicineF

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Corporate SnapshotCorporate Snapshot

ASX Code: AVH

Number of shares on issue 93 474 millionNumber of shares on issue 93.474 millionPercentage (%) of AVH held by top 20 shareholders

25.88%

$Cash reserves $8.1m @ 30/9/08Cash backing per share 8.6cAverage weighted share price (Oct 08) 4.6cg g p ( )Average market capitalisation (Oct 08) $4.29 millionRevenues 1Q 08/09 $708,701Revenues 1Q 07/08* $13,185

* Prior to acquisition of Visiomed GroupFor

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Financial PerformanceFinancial PerformanceRevenues Gross Profit

EBITA

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Experienced BoardExperienced Board

DALTON GOODING ChairmanBBus, ACA, FCA• Partner Gooding Pervan Chartered

Accountants

IAN MACPHERSONDeputy ChairmanB.Comm, CA• Founder of accounting firm Ord Partners

Chartered AccountantsAccountants• Former partner at Ernst & Young• Board member of several listed companies

Chartered Accountants• Former partner at Arthur Anderson & Co

DR FIONA WOOD DR WILLIAM DOLPHINDR FIONA WOODNon-Executive Director(Founder)FRCS, FRACS• Director of Burns Service, WA

DR WILLIAM DOLPHINManaging DirectorPhD Biophysics• 25 years senior executive experience in

international med-tech industry• 2005 Australian of the Year• Order of Australia• Chairman McComb Research Foundation

• 1989, 1991 recipient of US National Institutes of Health Research Service Award

• 5 US and international patents

DR PAUL WATTDR PAUL WATTNon-Executive DirectorPhD BioChemistry• VP Drug Discovery, PhylogicaFor

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Senior ManagementSenior ManagementggWilliam F. Dolphin, Ph.D., CEO, 25 years international executive

experience; significant M&A experience; Appointed as CEO in July 2008.CEO in July 2008.

John Geisel, Senior VP Business Development 30 years experience in medical sales and general management; p g g ;joined Avita in July 2008.

Lorraine Glover, General Manager, Asia Pacific 17 years in the commercial biotechnology and medical devices industry; Joined Visiomed in 2002.

William Marshall, VP Operations 30 years industry experience; expertise in lean manufacturing, quality and regulatory systems; Joined Avita Medical in July 2008.

Matthieu LeClec Chavel VP Sales & Marketing 15 years in international medical sales and marketing; Joined C3 in December 2005December 2005

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Strategic PlanStrategic Plan

Clear, focused and consistent: Aim to be a leading global to be a ead g g obamulti-enterprise medical devices company

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Growth StrategyGrowth StrategyKey areas of strategic growth plan:

Increase sales in domestic and international marketsFocus sales efforts on key high demand, high potential markets with

regulatory clearance in placeImprovements to operations and manufacturingImprovements to operations and manufacturing

Application of “Continuous Improvement” modelObtain regulatory approvals for current products in key markets

US FDA approval for ReCellTight management of working capital

- Secure high operating margins as company grows.Secure high operating margins as company grows.- Continuous improvement to increase operational efficiencies

Enhancement of product portfolio and expand applications of i t ll t l tintellectual property- Acquire market leading products in early stages of commercialisation- Seek acquisitions, strategic partnerships, licensing relationships and other corporate activityactivity

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Revenue StreamsRevenue StreamsRevenue StreamsRevenue StreamsMarket focus– Limited number of key,

high value markets with Country / Region ReCell Respiratory

major growth potentialSales of current product

Australia

United Kingdom

Francelines– Direct sales force

Di t ib t

France

ItalyUSA

– DistributorsLicensing agreements with third party manufacturersmanufacturers– Royalty streams from third party sales– Joint marketing / sales partnershipsJoint marketing / sales partnershipsFor

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Our ProductsOur ProductsBreathBreath--AA--TechTechReCelReCell FunhalerFunhaler

Spacer designed for adolescents & adults

Autologous cell harvesting device

Paediatric Incentive Spacer

75% market share in AustraliaRetail pharmacies

Treatment of burns, wounds, skin defectsBurns, plastics and

Demonstrated to improve compliance in children p, p

cosmetic surgeons Retail pharmacies

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Respiratory Opportunity:Respiratory Opportunity:Market Trends Market Trends -- Drug Delivery and ComplianceDrug Delivery and Compliance

f• Lack of compliance with prescribed medication regime a key healthcare issue.

• Major drugs off patent; drive for• Major drugs off patent; drive for reformulations

• Inhaled medication: rapidly growing,Inhaled medication: rapidly growing, preferred delivery pathway for an increasing range of drugs

• Sales of drug delivery products predicted to increase by 100% over next 5 years 1.

• Drug delivery is expanding faster than the• Drug delivery is expanding faster than the total pharmaceutical market

1. Source: Informa Pharmaceuticals / Jain PharmaBiotech1. Source: Informa Pharmaceuticals / Jain PharmaBiotech

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Th ld id k t f i tTh ld id k t f i t

Respiratory: MarketsRespiratory: MarketsThe worldwide market for respiratory The worldwide market for respiratory

pharmaceuticals and drug delivery: US$22 Bpharmaceuticals and drug delivery: US$22 B

Paediatric AdultPopulation Incidence Population IncidencePopulation Incidence Population Incidence

Asthma 55,000,000 12 – 16% 85,000,000 8 – 10%

COPD 5,000,000 1 – 2% 100,000,000 10 -15%

• Lung disease 3rd leading cause of death in the US, responsible for 1 in 7 deathsAsthma is the most common chronic childhood disease• Asthma is the most common chronic childhood disease

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Why Spacers?Most respiratory medications are inhaled Recommended by all major medical organisations R d id ff t f di tiReduce side effects of medications Provide superior drug delivery● 45% more drug delivered to lung; 60% less to body45% more drug delivered to lung; 60% less to body

(mouth, stomach etc)

With spacer: Good delivery With spacer: Good delivery of medication; majority of medication; majority

deposited in lungdeposited in lung

Without spacer: Poor Without spacer: Poor delivery of medication; delivery of medication;

majority deposited in mouth majority deposited in mouth and stomachand stomach

Devadason et al ERJ 2003

and stomachand stomach

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Spacer Product Line: Products:

Funhaler: – Premium paediatric incentive spacerPremium paediatric incentive spacer– Specifically designed for children– Encourages children to take their

asthma medication => improved compliancecompliance

Breath-A-Tech– Low cost adolescent / adult spacer– Market leader in Australian market with

75% shareHigh gross marginsExpanding market US EU and AsiaExpanding market US, EU and AsiaDistribution in AUS in placeWorldwide distribution –

– licensing agreement with Respironics(NASDAQ:RESP)

– In process in EU, USPatents and regulatory approvals in place

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Respiratory: Respiratory: Growth StrategyGrowth Strategy• Funhaler

• Increase market penetration in Australia, EU and US• Establish the product in the key global paediatric

markets underpinned by strong marketing push

• Breath-A-Tech • Maintain leading market position in Australia and

continue roll out in Asia Pacific• Maximise opportunity through Respironics royalty in

other global marketsFor

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Respiratory: SummaryRespiratory: Summary• Good cash flow business• High marging g• Opportunity for significant growth in

EU, US and Asian marketsEU, US and Asian markets

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Regenerative MedicineRegenerative MedicineRegenerative MedicineRegenerative Medicine‘Prometheus Unbound’‘Prometheus Unbound’

• Goal: Utilize body’s regenerative capabilities to regrow andcapabilities to regrow andrestore lost, damaged or aging tissues and organs in the human bodythe human body

• A major ‘new frontier’ in medical sciencescience

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ReCell Autologous Cell HarvesterReCell Autologous Cell HarvesterReCell Autologous Cell HarvesterReCell Autologous Cell HarvesterPatented and proprietary autologous tissue engineering processengineering process – Provides for treatment of

Burns Acute or chronic woundsAcute or chronic woundsReconstructive and cosmetic skin procedures.

Key Product : ReCell®– Unique and Innovative device for harvesting, U que a d o a e de ce o a es g,

processing and reapplying patient’s skin cells – Sold as 'lab-in-a-box' kit replacing skin graft

techniquesAd t i l dAdvantages include:– On-site processing for immediate harvest and

spray-on application Increased viability and increased healing rates– Increased viability and increased healing rates

– Minimised scarring– Ability to be processed by clinician, not specialised

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ReCell: Changes body’s response toReCell: Changes body’s response toReCell: Changes body s response to ReCell: Changes body s response to wound from ‘stop’ to ‘grow’wound from ‘stop’ to ‘grow’

Utilises body’s natural capability to regenerate tissue to enhance and accelerate healing processaccelerate healing processBurns, scalds and donor sitesScar revisions to improveScar revisions to improve colour and textureGlaborous skin loss injuriesE id l d f t hEpidermal defects such as acnePigmentation disorders such as Vitiligosuch as VitiligoProphylactic cosmetic rejuvenation proceduresF

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ReCell: Growth ProspectsReCell: Growth ProspectsReCell: Growth ProspectsReCell: Growth Prospects

If ReCell is such a great technology… Why hasn’t it been more widelyWhy hasn t it been more widely adopted? Why taking so long to getWhy taking so long to get meaningful level of sales?

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ReCell: Growth ProspectsReCell: Growth ProspectsReCell: Growth ProspectsReCell: Growth Prospects‘Game-changing’, ‘disruptive technology’technologyConcept saleRequires changing the way surgeonsRequires changing the way surgeons practise medicine:– From “cut & stitch” to “scrap & spray”

Major customers:– Plastic, cosmetic, burns surgeons,

d t l i tdermatologists– Specialist medical facilities

F h Mi i t f H lth b idi iFrench Ministry of Health subsidizing 200 patient medico-economics study on the impact of ReCell on burn pwound healing.

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SummarySummarySummarySummaryNew CompanyNew CompanyNew, experienced managementNew approach to securingNew approach to securing “Product Champions” and achieving market penetrationNew emphasis on operational efficiencies and cost containment

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Summary: To DoSummary: To DoEstablish Avita as recognizable medical d i idi i ldevice company providing commercial tissue engineering and respiratory products in global marketsA hi l t ti i i tiAchieve sales penetration in existing markets with regulatory approval; endorsement of Key Thought LeadersE h d t tf li dEnhance product portfolio and distributionContinuous improvement to

f i d i lmanufacturing and operational efficienciesComplete clinical trials for FDA approval for ReCell in the UStReturn value to shareholders; this is your companyF

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Thank you for yourThank you for your attention and supportattention and support

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