May 19th CEO Forum Series Lunch. The outlook for biotech capital raisings is not as grim as some might expect. Hosted by PricewaterhouseCoopers

70 members attended the May 19^th CEO Forum Series Lunch which looked at institutional investment processes and capital raising options for biotech companies, given the current volatility world markets. The lunch was hosted by Mr Tony Stephen, Partner at PricewaterhouseCoopers.

Mr Stephen introduced the topic following lunch with an analysis of the performance of the Australian life sciences sector. This summary showed that the index had increased in value over the past 12 months and had declined in the first quarter of 2008, but had out performed both the ASX All Ords and the Nasdaq Biotech Index in both periods. Tony also made some comments on the recent changes to Venture Capital Limited Partnerships taxation treatment. For more information Tony can be contacted at anthony.stephen@au.pwc.com

Industry Funds Management Pty. Ltd., Head of Private Equity, Ms Judith Smith said that she believed that there was a positive outlook for the biotech / medtech sector in Australia for the period 2008 - 2012. Ms Smith based this observation on the facts that:

• there is now a deeper pool of life sciences managers available in Australia,
• that despite the recent markdowns there was a stronger level of support from public capital markets;
• US Life Science funds to test local public market via PIPE strategy;
• private fund managers are better resourced – several Australian life science funds >A$100m;
• there is increased support from large, quality US VC funds.

Ms Smith also said that she expected the globalisation of venture capital would allow Australia to access more capital from offshore in one form or another.

Our Thanks to PwC for hosting this event.