Bioventix Presentation: October 2012

Automated Blood Testing

Blood testing is performed at hospitals on

automated machines supplied by large

multinationals such as Siemens & Roche

Reagent packs contain antibodies

antibody

antigen

Bioventix makes antibodies

Doctors take blood for testing

Bioventix plc: History & Background

Founded December 2003 to make sheep monoclonal

antibodies (SMAs) for diagnostics

Opportunity arose from the acquisition of KS

Biomedix plc by Xenova plc; technology and lab

facilities surplus to Xenova requirements

MBO funded from VC (SpringHill Bioventures)

– SpringHill original holding 70%

• Fund set up in 2003 is now winding down and shares are expected to

be more widely distributed

– Peter Harrison (CEO) owns 20%

Board Members

Non-executive Chairman: Ian Nicholson

– Celltech, UCB, Chroma Therapeutics

CEO: Peter Harrison

– Shell, Celltech

Non-executive Director: Kim Tan

– Guildhay, KS Biomedix, SpringHill

Finance Director: Treena Turner

– Wise & Co

Creating Antibodies

Antibodies are made by immunising animals and

“immortalising” their white blood cells

This “monoclonal antibody” technology was

founded in Cambridge in 1975, based on mice

Mouse monoclonal technology remains at the core

of the global antibody industry

Sheep Monoclonal Antibodies (SMAs)

Bioventix‟s business is based on the unique ability

to make sheep monoclonal antibodies (SMAs)

SMAs have advantages (eg of affinity) over mouse

antibodies and can facilitate better diagnostic tests

Scientists in Farnham took over five years to

establish SMA technology and a significant barrier

to entry exists with respect to time and know-how

£ („000) Year to

30.6.07

Year to

30.6.08

Year to

30.6.09

Year to

30.6.10

Year to

30.6.11

Year to

30.6.12

Sales 544 997 1,647 1,578 1,973 2,383

P/(L) (86) 403 857 682 1,083 1,506

P/(L) after tax (76) 359 635 564 884 1,237

Year-end cash 193 412 1,184 1,349 1,531 2,179

Dividend distribution 0 0 0 500 550 605

Historic Financial Data

Bioventix revenues are derived from the sale of

physical antibody (ie $/gram) and increasingly…

Royalties on the sale by Bioventix customers of final

test products to end-users at hospitals and clinics

Data Graph

Sales of purified SMAs and in

particular royalties have powered

growth over recent years

Antibody Pipeline & Growth Prospects

Analyte SMAs created In Market

T3 (thyroid) 1990 1995

NT proBNP 2004 2007

Estradiol 2005 2010

Testosterone 2006 2009

Troponin 2006&07 2015 est

Cortisol 2008 2013 est

Vitamin D 2009&10 2012

Tacrolimus 2010 2013 est

Progesterone 2011 2013 est

Aldosterone 2011 2013 est

TSH 2012 ?

Androstenedione 2012 ?

Drugs (various) 2007-11 2010-15

Further SMAs in the pipeline are

capable of delivering additional

growth beyond 2015

Sponsored research: exclusive

Own-risk research: non-exclusive Oct 2012

Continued growth in the period

2012-2015 is expected to come

from vitamin D

Business Dynamics

Bioventix takes about 1 year to make antibodies

Customers take 2-4 years to: formulate a prototype

test; conduct field trials; submit data to regulatory

authorities; obtain marketing approval

This delivers longer term revenue continuity

Old test

Pro

toty

pe test

+1 year

2-4 years

= 3-5 years total

Competitive Environment

Bioventix operates in a globally

competitive market for antibodies

In practice, Bioventix‟s competition

comes from the in-house antibody

R&D at the major diagnostics

companies (Abbott, Roche & Siemens

etc) – ie Bioventix‟s customers

Dividends & Growth

Share price (16.10.12): 240p

2012 dividend yield: 12.1p (5%)

Good growth prospects from vitamin D & other

pipeline SMAs

Achievable with unchanged head-count and cost

base whilst continuing to invest in long term R&D