Avacta Group plc Innovation for global health Frequently Asked Questions © Avacta Group plc What does Avacta do? Business Model Intellectual Property Proprietary reagents, test methods, hardware, software and consumables. Disruptive technologies with recurring revenues from reagents and consumables. Applications Life sciences research, drug and diagnostics development, and healthcare. Our Purpose Help to reduce the costs of global healthcare by putting powerful tools in the hands of life scientists and healthcare practitioners. Which are Avacta’s Main Markets? Life sciences R&D – academia and industry Drug developersbiotech and biopharma Diagnostics developers Veterinary Healthcare Therapeutics Very large global market opportunities What are Avacta’s Products? Affimers : a faster, better and cheaper alternative to antibodies • Small, robust, patent protected proteins. • Modified to improve stability and remove any cross reactivity. • Two loops and one end of the protein structure form a binding surface like an antibody. • Affimers to new targets are generated by screening a huge library in vitro which is quick with a high success rate. • A direct replacement for antibodies in all applications. Loop 1 Loop 2 N terminus What are Avacta’s Products? Optim2 – the only high throughput, ultra low sample volume system for characterising the stability and formulation of protein products. Key Facts : Launched 2010 – >60 units shipped £100k unit price – Consumable usage ~£5k per unit per annum Veterinary diagnostics – reference laboratory and diagnostic kits business. Greatly reduces the time and cost of drug formulation trials. Reduces development risk. Optimises formulation and processing conditions for protein therapeutics and other protein products. Good gross margin on units and on consumables. Established diagnostics laboratory and kits business. New tests and kits planned for 2014/15. Key Facts : Circa £1.5m turnover FY2014 Sensipod – putting reference laboratory diagnostic testing in the hands of veterinarians. Carries out an ELISA immunoassay in the veterinary clinic with minimal user intervention. A large menu of diagnostics tests in development. Key Facts : Completing development Good gross margin on test cartridges. Who are the Key People? A management team with a strong mix of commercial, technical and financial skills and experience whose incentivisation is aligned entirely with shareholders and the success of Avacta. Chief Executive Officer and Founder, Alastair Smith : A highly commercial scientist, excellent communicator and driving force of innovation and strategy in the business. Chief Operating Officer, Craig Slater : Over 25 years experience as a senior executive in private and listed businesses in a range of sectors. Finance Director, Tim Sykes : Extensive commercial and corporate transactions track record in high growth SMEs. What is the Institutional Backing? High quality institutional shareholders : – IP Group plc (29%) have supported Avacta since inception – Henderson (14%) have supported Avacta since inception – Ruffer LLP (7.0%) became a shareholder in 2013 – Bailie Gifford (5.6%) became a shareholder in 2014 – Octopus Investments (3.5%) became a shareholder in 2014 – NFU Mutual (3.5%) became an investor in 2013 – Capital for Enterprise (2%) became an investor in 2009 Information correct at time of release : January 2015 What is the Primary Business Strategy? Product Strategy Market Strategy • Near term focus on markets that have no regulatory hurdles for new products : Affimer R&D reagents and veterinary diagnostics. • Address opportunities in human diagnostics and therapeutics in the longer term. • Focus R&D resources on Affimer development to address high value gaps in the antibody reagents market. • Develop data pack over the longer term to support therapeutic licensing of Affimers. Sales Strategy • High quality global commercial partners whilst maintaining direct sales and support in Europe. • Build e-commerce for Affimers in parallel with distribution partners. What are the key points to remember about Avacta? 1. Affimers are Avacta’s proprietary, engineered alternative to antibodies developed to overcome many of the performance limitations of antibodies which command a $50bn market despite their issues. 2. Affimers provide the Group with very high growth potential through commercialisation as research reagents, diagnostics and therapeutics. 3. There are no technical hurdles to overcome for Affimer commercialisation which began in the autumn of 2014. 4. The Group has established revenue generating businesses providing equipment, kits and testing to the pharma and healthcare sectors. 5. The management team has personal outcomes entirely aligned with shareholders. 6. High quality institutional investor base. Other FAQs • Who do I contact if I have lost my share certificate or have a query about dividends? Contact Capita Registrars at : Telephone: 0871 664 0300 (calls cost 10 pence per minute plus network extras) (from outside the UK: +44 (0) 208 639 3399) E-mail: ssd@capitaregistrars.com • Who do I notify if I have changed my address? Contact Capita Registrars as above. • Can I transfer all or some of my shares to other members of my family? Yes, please contact Capita Registrars. • I receive multiple copies of shareholder circulars. What should I do? Your name probably appears on the share register more than once. Please contact Capita Registrars for advice on how to amalgamate your shareholdings. • How do I get an annual report? Reports can be downloaded from the Documents page within Investor Relations section of the Avacta Group web site when available. If you wish to obtain a paper version, please email avacta@walbrookpr.com. • I owned shares in Readybuy Plc – do I need to ask for a new share certificate? No, the existing share certificate is still valid.