2013 Apr 15 Annual Report 2012 - Phosphagenics

Directors’ Report continued
Looking Forward
Year 2013 will be a year of moving the opioid patch program forward with both the oxycodone and
oxymorphone patches undertaking clinical trials earlier in the year. After trial data is assessed, these results
together with clinical design information will be included in an IND to be submitted to the FDA.
After approval is received phase 3 trials will be ready to start. The opioid patch program will be conducted
after consultation with both our regulatory experts and the FDA.
Whilst the opioid patch program remains our focus, there will be a growing number of revenue streams,
in the areas of personal care, OTC pain products, and animal health.
There will be other areas where R&D required to commercialise products will be continued. These include
in the area of dermal and acne products, Liquid anti-biotics through Agila and animal health through
Mastitis Australia.
In the area of personal care we will generate new revenue sources through agreements with GNC,
Intas and Themis.
All of these revenue streams involve royalty or similar arrangements that will be received by us at minimal
cost to the company. We also are expecting after some internal restructuring that Elixia revenues will
improve whilst the advertising spend and cost basis associated with that revenue will go down.
Phosphagenics fi nancial position will also be boosted by the receipt of the 2011-12 and 2012-13 tax year R&D
rebates. Both these amounts should be received by us in 2013 and we estimate will be around $7.5 million.
FUTURE DEVELOPMENTS
Disclosure of information regarding likely developments in the operations of the consolidated entity
in future fi nancial years and the expected results of those operations is likely to result in unreasonable
prejudice to the consolidated entity. Accordingly, this information has not been disclosed in this report.
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ENVIRONMENTAL REGULATIONS
The Company is registered with relevant authorities to use certain compounds in the manufacture
of goods. All waste chemicals are disposed of using accredited service providers with notifi cation
to thexrelevant authorities.
There have been no signifi cant known breaches of any environmental regulations to which the company
is subject.
DIVIDENDS
The Directors have not recommended the payment of any dividends and no dividends were declared,
paid or reinvested in the year to 31 December 2012.
DIRECTOR’S REPORT