Bionomics : Annual Report 2017

2017‌‌‌‌‌‌‌‌‌‌

BIONOMICS ANNUAL REPORT

CONTENTS

1. HIGHLIGHTS

2. CHAIRMAN'S LETTER

3. CEO AND MANAGING DIRECTOR'S REPORT

1. INTELLECTUAL PROPERTY PORTFOLIO

2. BOARD OF DIRECTORS

1. MANAGEMENT

2. DIRECTORS' REPORT

36 ANNUAL CONSOLIDATED FINANCIAL STATEMENTS

77 INDEPENDENT AUDIT REPORT

82 SHAREHOLDER INFORMATION

84 COMPANY PARTICULARS

01

VISION

BIONOMICS IS A GLOBAL, CLINICAL STAGE BIOPHARMACEUTICAL COMPANY LEVERAGING PROPRIETARY PLATFORM TECHNOLOGIES, IONX AND MULTICORE, TO DISCOVER AND DEVELOP A DEEP PIPELINE OF NOVEL DRUG CANDIDATES TARGETING ION CHANNELS

HIGHLIGHTS

• Merck & Co (MSD) collaboration milestone triggered as therapeutic candidate entered clinical development for the treatment of Alzheimers disease

• US$10 million payment by MSD to Bionomics

  BNC210 CLINICAL SUCCESS

• Positive topline

  Phase 2 data reported in patients with Generalised Anxiety Disorder (GAD)

• Phase 2 clinical trial of BNC210 in Post Traumatic Stress Disorder (PTSD) initiated in Australia and the USA

  STRATEGY REFINED

• Focussed strategy builds on Bionomics' strengths in ion channel targeted small molecule drug discovery and development

• 'Off strategy' oncology assets BNC101

and BNC105 to be monetised

02

CHAIRMAN'S LETTER

Fiscal Year 2017 has been very pleasing for Bionomics as many elements of our long term strategy and value of our ionX and MultiCore drug discovery platforms were realised with exciting progress in our clinical pipeline both through our important collaboration with MSD

(known as Merck & Co., Inc., in the US and Canada), success of our internal candidate BNC210 in a Phase 2a

clinical trial in Generalized Anxiety Disorder (GAD), initiation of a multi-centre Phase 2b clinical trial of BNC210 in Post- Traumatic Stress Disorder (PTSD), strengthening of our Board of Directors and Management and solid financial results.

Our strong collaboration with MSD, one of the leading pharmaceutical companies in the world, is exemplified on multiple fronts. As part of a research collaboration and license agreement announced in June 2014, the Bionomics and MSD teams have worked closely together

to deliver a candidate therapy now in clinical development for the treatment of cognitive dysfunction associated

with Alzheimer's disease. The first administration of a candidate therapy in a clinical trial in early 2017 triggered a US$10 million milestone payment to Bionomics. This payment not only strengthened our balance sheet, but further validates Bionomics' proprietary drug discovery technology and capabilities.

Beyond the R&D collaboration, MSD became a shareholder of Bionomics in 2015 and the two companies have worked together since 2013 to co-sponsor an annual symposium

in Adelaide to highlight emerging opportunities for the treatment of major debilitating neurological and psychiatric disorders with presentations from

international and Australian researchers and clinicians across academia and industry.

The clinical development progress of our internal pipeline was equally pleasing to report with positive Phase 2a clinical data from a trial evaluating the effects of BNC210 on anxiety-associated neural networks in patients with GAD.

We now eagerly await the completion of enrolment and results from a separate Phase 2b clinical trial being undertaken in the US and Australia in patients with PTSD, a common condition that is very poorly served by existing medications. Top line results from the multi-centre PTSD trial are anticipated in mid-calendar year 2018.

2016 marked changes of the Board of Directors with the addition of Messrs David Wilson, Alan Fisher and Peter Turner bolstering our experience in global investment, finance and drug development.

The new Board has undertaken a major review of the Company's strategy in 2017 and determined that we should continue to build and make significant investments in

R&D where there has been both clinical and commercial success. These investments will focus on Bionomics' acknowledged world-leading expertise in ion channel biology which has led to our relationship with MSD, previous partnerships with Merck KGaA and Ironwood and which underpins the mechanism of action of our lead therapeutic candidate BNC210. In line with this strategic focus, we will seek to monetise our non-ion channel assets, the cancer therapeutic candidates BNC101 and BNC105. In parallel, we will complete the ongoing BNC101 clinical trial in patients with metastatic colon cancer, where biomarker and other data are anticipated in late 2017, and support

the current BNC105 trials which have attracted external funding. Difficult operational decisions have also been made which include the closure of our operations in San Diego, which were originally established to focus on development of BNC101, and our retirement from the CRC for Cancer Therapeutics. Closure of the San Diego site allowed us to consolidate our business and R&D operations in Australia and France making greater use of existing synergies.

It is pleasing to report that FY17 delivered solid financial results. Revenue increased 128% to $18.6 million. The reported loss after tax for FY17 was $6.7 million compared to $16.6 million in FY16. The closing cash position at 30 June 2017 was $42.9 million compared to $45.5 million at 30 June 2016.

The Board thanks Dr Deborah Rathjen and the Management team, which as of August 2017 includes an additional highly experienced international executive Mr Steven Lydeamore, for the progress the Company has made in the past 12 months. We acknowledge and sincerely thank all our shareholders for their continued

support and we look forward to sharing with you news on clinical and partnership progress in the coming year.

Yours faithfully