2013 Apr 15 Annual Report 2012 - Phosphagenics

Directors’ Report continued
Net loss after tax for the year was $11.1 million as compared to a net profi t after tax in 2011 of
$1.1 million. During 2011 the company elected to form a tax consolidated group, giving rise to an income
tax benefi t of $13.8 million during that year.
The operating loss before amortisation of intangible assets and income tax was $6.4 million, a decrease
from $10.3 million in 2011.
For further details refer to the attached Financial Statements and notes.
Research & development
A number of R&D achievements were made in 2012 TPM/Oxycodone. Development of the TPM/
Oxycodone patch was partnered with Labtec, a German company with specialist expertise in opioid patch
development. The patch is expected to return to the clinic early in 2013.
TPM/Oxymorphone. Phosphagenics is developing a TPM/ Oxymorphone patch which will undergo
a Phase 1 clinical trial in the fi rst quarter 2013. Oxymorphone is an opioid structurally similar to oxycodone
but approved for medium to high pain indications. It is 3.5 times stronger than oxycodone. Pre clinical
research on formulating a TPM/Oxymorphone patch has been very encouraging.
In early 2012 Elixia formulation for body shaper was changed. The new formulation was trialled in a human
focus group and provided results that showed that twice daily application of Body Shaper Cellulite
Contour Crème successfully reduced the visible appearance of cellulite over the eight week treatment
period and also had positive effects on skin elasticity and hydration.
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In the second half of the year Phosphagenics, with its partner Equine Nutrition Australia, conducted trials
on 26 horses using TPM supplements aimed at boosting red blood cell count. The trial results and the
observations from them have assisted in commercialising animal feed products.
Commercial Agreements
Several agreements were fi nalised in 2012 including:
• Partnering with Labtec GmbH to continue development of the Oxycodone Patch
• Agreement with Neura Therapeutik to provide commercial and clinical development advice
on the opioid patch program.
• David Jones became a stockist for Elixia Products.
• A Korean Drug Company agree to become a distributer of BioElixia BodyShaper in South Korea.
• GNC, a major US nutritional company, agree to market a cellulite cream formulation supplied
by us but branded and marketed by GNC.
• Agreement reached to supply three anti ageing formulations to Intas for sale under their brand
in the Indian market.
• Agreement with Nippon Zoki to evaluate TPM/diclofenac for the US and Japanese markets
• Agreement with Equine Nutrition Australia for development and commercialisation of animal health
markets. Feed products were launched in July 2012.
• Agreement with Agila Specialties Pte Ltd (a subsidiary of Strides Arcolab) to use TPM in a Liquid
injectible anti-biotic. Agila will pay for all costs to commercialising product.
• Formation of Joint venture company between Phosphagenics and ENA, called Equine Ergogenics
to market animal health products globally. Approval received from the Singapore Turf Club for use
by the trainers and owners of racehorses in Singapore. First sales achieved in 2012.
PHOSPHAGENICS ANNUAL REPORT 2012