Annual Report 2016
Table of Contents
Operations Report
Intellectual Property Report
Directors’ Report
Auditor Independence Declaration
Corporate Governance
Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Corporate Information
Page
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61
Operations Report
Overview of Company’s Activities
Ionis Strategic Partnership
Antisense Therapeutics Limited (“the Company” or
“Antisense Therapeutics”) continued its focus on
advancing its antisense oligonucleotide products under
development. The following report on operations details
the research and development activities undertaken by the
Company in the period.
Antisense Therapeutics’ Mission
Antisense Therapeutics’ mission is to develop and
commercialise novel antisense therapeutics in-licensed
from Ionis Pharmaceuticals Inc (Ionis), world leaders in
antisense drug discovery and development. The Company’s
Research and Development activities are focused on
developing its pipeline of 2nd generation antisense drugs
for diseases where there is a signifi cant and acknowledged
unmet medical need and where the antisense technology
has the potential to provide compounds with competitive
advantages over existing therapies or drugs in
development for those diseases.
Antisense Technology
Antisense technology prevents the production of
proteins involved in disease processes, which results in a
therapeutic benefi t to patients.
Proteins are fundamental components of all living cells
and include many types of molecules, such as enzymes,
hormones and antibodies, necessary for carrying out
the body’s functions. The overproduction or abnormal
production of proteins is implicated or associated with
many diseases. Antisense prevents undesirable protein
production in disease.
Antisense drugs are small (12-21 nucleotides) pieces
of DNA or RNA that are chemically modifi ed to create
drugs. Conventional medicines typically bring about their
desired therapeutic eff ect by binding to a target protein
directly, to interfere with the action of the disease
causing protein. Antisense drugs on the other hand, are
rationally designed to bind to a specifi c messenger RNA
sequence with extraordinary precision and thereby block
or stop the production of the disease causing protein in
the fi rst instance.
A fundamental element of the Antisense Therapeutics
strategy is its access to leading antisense technology
derived from its strategic partnership with Ionis, a
relationship that has been operating for over 15 years.
Using its proprietary antisense technology, Ionis has
created a large pipeline of fi rst-in-class or best-in-class
drugs, with over a dozen drugs in mid-to-late-stage
development. Ionis has several partnerships with major
pharmaceutical companies, including drug development
collaborations with GSK, Roche, Bayer and Biogen. In
2013 Ionis gained US FDA approval of the world’s fi rst
systemically administered antisense drug mipomersen
(KYNAMROTM).
The collaboration with Ionis provides Antisense
Therapeutics with access to Ionis’ antisense intellectual
property, and development expertise to support
development and commercialisation of the Company’s
pipeline of antisense drugs.
ATL1103 for Acromegaly, Diabetic Retinopathy
and Nephropathy and Cancer
ATL1103 is a second generation antisense drug designed to
block growth hormone receptor (GHr) expression thereby
reducing levels of the hormone insulin-like growth factor-I
(IGF-I) in the blood and is a potential treatment for diseases
associated with excessive growth hormone action. By
inhibiting GHr production, ATL1103 in turn reduces IGF-I
levels in the blood (serum). There are a number of diseases
that are associated with excess GH and IGF-I action. These
diseases include acromegaly, an abnormal growth disorder
of organs, face, hands and feet; diabetic retinopathy, a
common disease of the eye and a major cause of blindness;
diabetic nephropathy, a common disease of the kidney and
major cause of kidney failure, and certain forms of cancer.
ATL1103 is in clinical development as a treatment
for acromegaly. Normalizing serum IGF-I levels is the
therapeutic goal in the treatment of acromegaly and
reducing the eff ects of IGF-I has a potential role in the
treatment of diabetic retinopathy, nephropathy and
certain forms of cancer. The Company conducted a
successful Phase II trial of ATL1103 with the trial having
met its primary effi cacy endpoint by showing a statistically
signifi cant average reduction in sIGF-1 levels. The Company
is presently conducting a high dose study of ATL1103 in
adult patients with acromegaly in Australia.
ANNUAL REPORT 2016 (cid:122) 1
Operations Report continued
In May 2015 the Company entered into an exclusive license
agreement with Strongbridge Biopharma plc (formerly
Cortendo AB). The agreement provided Strongbridge with
development and commercialization rights to ATL1103 for
endocrinology applications.
Strongbridge’s possession; all data, reports, records,
materials and information resulting from Strongbridge’s
development activities; and all of its right, title and interest
in and to all applications and approvals, including orphan
drug designation, with respect to ATL1103.
On 12th May Antisense Therapeutics announced that the
US Food and Drug Administration (FDA) had granted
Orphan Drug designation to the Company’s drug ATL1103
for treatment of Acromegaly. Orphan drug designation
is granted by the FDA to drugs intended for the safe and
eff ective treatment of rare diseases that aff ect fewer than
200,000 people in the U.S. The FDA provides incentives
for companies to develop products for rare diseases
which may include tax credits towards the cost of clinical
trials, waiver of US prescription drug fi ling fees and
orphan product exclusivity upon marketing authorisation,
which means that the FDA may not approve any other
applications to market the same drug for the same
indication for seven years.
On 28th June the Company announced that the European
Commission had granted orphan medicinal product
designation for the Company’s drug ATL1103 for the
treatment of Acromegaly in the European Union (EU).
The approval was based on the recommendation of a
positive opinion from the European Medicines Agency
(EMA) Committee for Orphan Medicinal Products (COMP).
The COMP assessed the scientifi c documentation for
ATL1103 against the criteria for orphan designation, with
the COMP stating in their opinion that ATL1103 ”….will be
of signifi cant benefi t to those aff ected by that condition”.
Orphan designation in the EU enables sponsors to benefi t
from a number of incentives, including 10 years of market
exclusivity once the medicine is on the market. During
that exclusivity period, the EMA and the EU Member
states shall not accept another application for a marketing
authorization, for the same therapeutic indication, in
respect of a similar medicinal product. Other benefi ts relate
to assistance in developing clinical protocols, reduced fees,
and access to the EU-funded research grants.
Progress
On 9 September the Company announced that dosing had
commenced in its ATL1103 higher dose study with two
patients having received their initial dose of ATL1103 at
one of the Australian clinical trial sites.
On 9th March 2016 the Company announced that
Strongbridge had advised the Company of its intention
to return ATL1103 to Antisense Therapeutics to enable
Strongbridge to prioritise their resources and development
work on other areas of their endocrine portfolio.
On 9th May the Company provided an update on the
ATL1103 higher dose study advising that dosing of three
patients had been completed. Antisense Therapeutics
reported that the patients had received all 26 doses of
ATL1103 and that two patients had completed their 8
week follow up period. There were no reports of any
serious adverse events related to dosing with ATL1103.
The principal investigator of the study, Dr David Torpy, an
endocrinologist at the Royal Adelaide Hospital, requested
that the 3rd patient continue dosing with ATL1103 as
they had responded well to treatment with ATL1103. A
protocol amendment to the study was approved by the
Adelaide Hospital Ethics Committee for ongoing dosing of
this patient for an additional 12 weeks. ATL also advised
that it anticipated submitting an amendment to the study
protocol for approval to conduct an interim analysis on all 3
patients who had completed the initial 13 weeks of dosing.
The interim analysis would assess the change (percentage
reduction) from each of the 3 patient’s baseline (start of
the study) sIGF-I levels to their levels post dosing.
On 29th April the Company advised that it had reached
an agreement with Strongbridge on the terms of the
termination of the License Agreement for ATL1103.
Under the Deed of Settlement, Termination and Transfer
Strongbridge in return for the release of all obligations
and potential liabilities under the License Agreement
paid A$1million. Additionally all 15,025,075 shares owned
by SB will be returned to the Company and in due
course, cancelled in accordance with the Corporations
Act procedures. As part of the termination agreement,
Strongbridge also agreed to transfer to ANP: all of
the non-GMP and GMP ATL1103 drug compound in
2 (cid:122) ANTISENSE THERAPEUTICS
Events After Balance Date
On 27th July the Company announced that positive results
were achieved from the Interim Analysis of ATL1103
Higher Dose Study in 3 acromegaly patients. Patients were
dosed with ATL1103 at 300 mg twice weekly, capped at a
weekly dose of 6 mg/kg.
sIGF-I levels were reduced in all 3 patients by an average of
18.6% (P = 0.06*) at week 14 (one week past the last dose
which is the primary effi cacy endpoint in the trial) and an
average of 26.7% at week 13 being the last week of dosing
(P = 0.04*). Normalisation of sIGF-I was achieved in one
patient who received the highest dose per kg of bodyweight
(6 mg/kg). This was consistent with the previous Phase
II study of ATL1103 where patients who received more
drug per kg of bodyweight had greater reductions in their
sIGF-I. Reductions of sIGF-I to < 1.3 X ULN was achieved in
the other two patients who had larger body weights (over
100kgs) and therefore received relatively lower doses of
ATL1103 on a mg per kg basis (5.5 and 5.8 mg/kg/week)
suggesting a therapeutic benefi t in these 2 patients.
ATL1103 appeared to be well-tolerated at the higher mg
doses tested in the trial. No patient withdrew from the
study and there were no serious adverse events reported.
Mild injection site reactions - ISRs (redness, bruising,
swelling and itching) were the most common adverse
event reported, though these ISRs were of lesser severity
and incidence when compared to the previous Phase II
trial following the use of ISR mitigation strategies (e.g.
icing of the injection site pre and post dosing and use of
nanoneedles) recommended by Ionis. An elevated creatine
kinase level had also been reported as adverse without
apparent clinical sequelae.
?
What is Acromegaly?
Acromegaly is a serious chronic life threatening disease
triggered by excess secretion of growth hormone
(GH) by benign pituitary tumours. Oversupply of GH
over stimulates liver, fat and kidney cells, through
their GH receptors, to produce excess levels of Insulin-
Like Growth Factor-I (IGF-I) in the blood manifesting
in abnormal growth of the face, hands and feet, and
enlargement of body organs including liver, kidney
and heart. The primary treatments for acromegaly are
to surgically remove the pituitary gland and/or drug
therapy to normalize GH and serum IGF-I levels. In
North America and Europe there are approximately
85,000 diagnosed acromegaly patients with about half
requiring drug therapy.
On 13th July the Company reported that advancements
had been made in expanding the intellectual property
(IP) portfolio protecting ATL1103. These advancements
included both the grant of US patent 9,371,350
(14/137,852) entitled “Modulation of Growth Hormone
Receptor Expression and insulin like growth factor
expression” and NZ patent 629004 entitled “Combination
Therapy comprising a growth hormone variant and an
oligonucleotide targeted to the growth hormone receptor.”
ATL1102 for Multiple Sclerosis (MS)
ATL1102 is a second generation antisense inhibitor of
CD49d, the alpha subunit of VLA-4 (Very Late Antigen-4).
In infl ammation, white blood cells (leukocytes) move out of
the bloodstream into the infl amed tissue, for example, the
Central Nervous System (CNS) in MS, and the lung airways
in asthma. In MS, the inhibition of VLA-4 prevents white
blood cells from entering the CNS, thereby reducing the
severity of the disease and slowing its progression. VLA-
4 is a clinically validated target in the treatment of MS.
Antisense inhibition of VLA-4 has demonstrated positive
eff ects in a number of animal models of infl ammatory
disease including MS. ATL1102 was shown to be highly
eff ective in reducing MS lesions in a Phase IIa clinical trial
in MS patients. The Phase IIa clinical trial data on ATL1102
has been published in the medical Journal Neurology
(Limmroth et al, Neurology, 2014 Nov 11: 83(20: 1780-8).
The Company previously reported that the US Food and
Drug Administration (FDA) had responded affi rmatively to
the Company’s plan to submit a U.S. Investigational New
Drug (IND) application for initiation of longer term Phase
IIb human trials of ATL1102 for the treatment of MS and
that supportive guidance had been obtained from the
agency’s Pre-IND assessment of the development strategy
for ATL1102, including potential design(s) for a Phase IIb
study in MS patients.
The Company also previously reported that it had signed
a global agreement with innovative expanded access
provider myTomorrows (Amsterdam, The Netherlands) to
implement an Early Access Program (EAP) for ATL1102 for
the potential treatment of MS patients who have no other
treatment options in Europe.
ANNUAL REPORT 2016 (cid:122) 3
Operations Report continued
Progress
In July 2015 the Company advised that it was exploring
a number of value adding opportunities for ATL1102,
including partnering for further clinical development
in MS. The Company stated that in consultation with
Destum Partners who are assisting Antisense Therapeutics
in managing the partnering process for ATL1102, the
Company is continuing to seek to partner ATL1102 but
with increasing focus on ATL1102’s potential application
in treating secondary progressive SP-MS where there is
a high unmet medical need with few treatment options
available and therefore may provide both increased and
broader commercial appeal for ATL1102.
On 12th October the Company provided an update on
the EAP advising that it had executed an agreement for
the manufacture of an initial quantity of new ATL1102
drug compound with the new ATL1102 compound to be
formulated into injectable product for potential use in
the EAP.
On 8th December the Company advised that the data
from the testing of ATL1102 in an animal cancer research
study would be presented at The American Society of
Hematology (ASH) 57th Annual Meeting in Orlando
Florida. The data from this pilot animal study, conducted at
the Children’s Hospital Los Angeles (CHLA), showed that
ATL1102, led to the rapid mobilization of acute myeloid
leukemia (AML) cells to the peripheral blood in mice
that had been engrafted with human AML cells. A new
provisional patent application incorporating this data and
covering ATL1102’s potential application in AML and other
leukemias was fi led by the Company.
On 17th June the Company advised of its intention to
submit an Investigational New Drug (IND) application for
a Phase IIb trial in SP-MS patients with the Food and Drug
Administration (FDA) by end 3’Q’2016 and that in parallel,
the Company was actively pursuing potential non-dilutive
funding sources and other development opportunities for
Antisense Therapeutics to conduct the Phase IIb trial in the
event the Company determines this to be the best path
forward. In order to potentially help ATL access such grant
funding, the Company advised it had executed an agreement
with consulting fi rm FreeMind which specialises in assisting
life science organisations secure non-dilutive funding from
US Federal Agencies and Private Foundations. The Company
also reported on the drug manufacture of ATL1102 for
potential use in the EAP and that the compound had
been manufactured and formulation of this material into
injectable product was complete and undergoing testing to
confi rm it is ready for human clinical use.
4 (cid:122) ANTISENSE THERAPEUTICS
Antisense Therapeutics also advised that as a fi rst step
towards activating the EAP the Company was proposing
to undertake a small investigative study of ATL1102 in
relapsing SP-MS patients in Germany with Professor
Volker Limmroth (Cologne City Hospital, Department of
Neurology, Germany) and that with FreeMind’s assistance,
the Company would also pursue potential grant funding
for this study.
ATL1102 for Asthma
The Company has previously reported encouraging results
achieved in an animal model of asthma with the inhaled
form of an antisense compound targeting the VLA-4
molecule. Experimental studies showed that the delivery
of an antisense drug against VLA-4 via inhalation to the
lung signifi cantly suppressed the key asthma indicators in
allergen sensitized mice at very low inhaled doses, pointing
to the potential application of ATL1102 as an inhaled
treatment for asthma. The Company has conducted
successful animal studies using inhaled ATL1102. Further
development for the inhaled asthma application of
ATL1102 would be undertaken with a partner.
?
What is Multiple Sclerosis?
Multiple Sclerosis (MS) is a life-long, chronic disease
that progressively destroys the central nervous system
(CNS). It aff ects approximately 400,000 people in
North America and more than 1 million worldwide
and the current market for MS drugs is estimated at
more than USD$12 billion. It is a disease that aff ects
more women than men, with onset typically occurring
between 20 and 40 years of age. Symptoms of MS may
include vision problems, loss of balance, numbness,
diffi culty walking and paralysis. In Australia MS aff ects
over 15,000 people and worldwide MS may aff ect more
than one million people.
ATL1101 for Prostate Cancer
ATL1101 is an antisense inhibitor of insulin like growth
factor 1 receptor (IGF-Ir). IGF-Ir is one of the best known of
a family of cell signalling molecules that are referred to as
“anti-apoptotic”. These molecules prolong cell survival by
inhibiting programmed cell death (apoptosis). Inhibition of
cell survival molecules like IGF-Ir can render tumour cells
more susceptible to cell death with cytotoxic (cell death
inducing) drugs. Similar “chemosensitiser” therapeutic
approaches targeting the IGF-Ir are under investigation in
several large pharmaceutical companies, lending support
to Antisense Theapeutic’s antisense-based strategy against
the same target. In animal studies ATL1101 demonstrated its
eff ectiveness in suppressing human prostate cancer tumour
growth in mouse models of human prostate cancer and this
data has been published (Furukawa J et al Prostate 2010
1:70(2): 2006-18). The Company has previously undertaken
certain toxicology studies on ATL1101 that would potentially
position the drug to move into a clinical study in patients
with prostate cancer. Further clinical development of
ATL1101 would be undertaken with a partner.
R&D Tax Incentive
During the year the Company received from the ATO
a payment of $706,327 in relation to R&D expenditure
incurred in the 30 June 2015 fi nancial year.
Financial Position
At 30 June 2016, the Company had cash reserves of
$4,800,718 (2015: $6,829,605).
Events after Balance Sheet Date
No matters or circumstances have arisen since the end of
the reporting period, not otherwise disclosed in this report,
which signifi cantly aff ected, or may signifi cantly aff ect, the
operations of the Company, the result of those operations,
or the state of aff airs of the Company in subsequent
fi nancial periods.
ANNUAL REPORT 2016 (cid:122) 5
Intellectual Property Report
Antisense Therapeutics currently has 9 patent families with 75 patents registered and 19 patent applications pending
covering its three antisense drugs ATL1101, ATL1102, and ATL1103 and their applications. Antisense Therapeutics has
also licensed from Ionis Pharmaceuticals, 19 Ionis proprietary patents and applications directed to the antisense drug
platform together with rights to 11 other Isis manufacturing patent families.
Since reporting on the status of the Company’s intellectual property portfolio in the 2015 Annual Report the Company
has expanded its patent portfolio as follows:
• A key US patent and a key European patent have been issued and registered;
• US patent 9,371,530 covering ATL1103 and other antisense to human GHr reduction of GH Binding Protein, the
soluble form of the GHr has been granted;
• European 11194098.8 covering ATL1103 and other antisense to GHr reduction of sIGF-I has been granted and
registered in 10 European countries; and
• NZ patent 629004 covering ATL1103 used in combination with GHr antagonist Somavert has been granted to
2033.
• The International application PCT/Au2014/000613 has been fi led to cover the use of ATL1103 used in
combinations with somatostatin agonists to 2034; and
• Australian patent application 2011301712 has been accepted and US continuation application 15/046352 has been
fi led covering the use of ATL1102 reduction of circulating immune cells for the treatment of immunological disease
to 2031.
The progress outlined above has added signifi cant value to an already extensive intellectual property portfolio. Key
patents have been granted for all of the compounds in Antisense Therapeutics’ product pipeline that underpin Antisense
Therapeutics commercialisation plans for its antisense drugs.
Country
Patent application or Patent No.
Current Status
Expiry
ATL1103 Patent Portfolio**
USA
USA
USA
7,803,781
8,299,039
8,637,484
Patent Registered
Patent Registered
Patent Registered
International
PCT/US2004/005896
National Phase applications
Australia
Canada
Europe***
Europe***
Denmark
Finland
France
Germany
Italy
Spain
Sweden
Switzerland
The Netherlands
United Kingdom
2,004,217,508
2,517,101
04715642.7
Patent Registered
Patent Registered
Under Examination
11194098.7 Divisional of 04715642.7
Regional Phase - granted
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
2025*
2024*
2024*
2024*
2024
2024*
2024*
2024*
2024*
2024*
2024*
2024*
2024*
2024*
2024*
2024*
6 (cid:122) ANTISENSE THERAPEUTICS
Country
Japan
Japan
New Zealand
USA
USA
USA
USA
International
Australian
Canada
Europe
Japan
New Zealand
USA
USA
International
Australian
Canada
Europe
Japan
New Zealand
USA
ATL1102 Patent Portfolio**
USA
USA
Patent application or Patent No.
Current Status
2006-508878
Patent Registered
Divisional of 2006-508878
Under Examination
542,595
7,846,906
8,623,836
9,371,530
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Continuation fi led
Filed
PCT/AU2013/000095
National Phase Applications
2,013,214,698
2,863,499
13743020.3
2014-555044
629,004
14/376390
Under Examination
Under Examination
Under Examination
Under Examination
Patent Registered
Under Examination
15/007,0011 Divisional fi led
Filed
PCT/AU2014/000613
International Phase
2,014,280,847
2,918,787
14810926.7
2016-518801
715,825
14/897896
US 5968 826
US 6258 790
Filed
Filed
Filed
Filed
Filed
Filed
Expiry
2024*
2024*
2024*
2024*
2024*
2024*
2024*
2033
2033
2033
2033
2033
2033
2033
2034
2034
2034
2034
2034
2034
Patent Registered
Patent Registered
2018 **
2018*/**
International
PCT/US99/18796
National Phase applications
Australia
Canada
Japan
Japan
Europe
Denmark
Finland
France
Germany
Italy
Spain
Sweden
United Kingdom
AU 759938
2,345,209
2000-574727
2006-000258
EP1123414
DK/EP1123414
EP(FI)1123414
EP(FR)1123414
DE69934998.2-08
IT40051BE2007
ES2279632
SE99942290.0
EP(UK)1123414
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Regional Phase - granted
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
2019 *
2019
2019 *
2019 *
2019 *
2019 *
2019 *
2019 *
2019 *
2019 *
2019 *
2019 *
2019 *
ANNUAL REPORT 2016 (cid:122) 7
Intellectual Property Report continued
Country
Patent application or Patent No.
Current Status
Expiry
ATL1102 MS Patent Portfolio**
International
PCT/US2009/003760
National Phase applications
AU 2009271678
2,728,562
09798248.2
Patent Registered
Under Examination
Regional Phase - granted
Australia
Canada
Europe***
Denmark
Finland
France
Germany
Italy
Spain
Sweden
Switzerland
The Netherlands
United Kingdom
Japan
Japan
USA
USA
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Under Examination
Under Examination
Europe ***
Divisional of 09798248.2
2011-516297
2014-208153 (Divisional of 2011-5516297) Under Examination
8,415,314
8,759,314
Patent Registered
Patent Registered
ATL1102 Methods of reducing circulating leukocytes / Methods of mobilizing AML cells****
Australia
Canada
USA
2,011,301,712
2,811,228
Accepted
Re-instated
15/046352 (Continuation of 13/823101)
Filed
Provisional****
2,015,904,547
Filed
ATL1102 Inhaled Asthma Patent Portfolio **
International
PCT AU 2005/001634
National Phase applications
Australia
Canada
Europe
Denmark
Finland
France
Germany
Italy
AU 2005327506
CA 2,584,614
EP1809302
DK/EP1809302T3
EP(FI)1809302
EP(FR)1809302
DE 60 2005 035 821.8
IT73129 BE/2012
Patent Registered
Under Examination
Regional Phase - granted
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
8 (cid:122) ANTISENSE THERAPEUTICS
2029*
2029
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2029*
2031*
2031*
2031*
2036*
2025*
2025
2025*
2025*
2025*
2025*
2025*
Patent application or Patent No.
Current Status
Country
Spain
Sweden
ES2392449
SE1809302T3
United Kingdom
EP(UK)1809302
Japan
JP 2007-535071
Abandoned
New Zealand
USA
NZ 554277
US 8,765,700
ATL1101 Patent Portfolio **
Patent Registered
Patent Registered
International
PCT/AU2004/00160
National Phase applications
Australia
Canada
Europe
Denmark
Finland
France
Germany
Italy
Spain
Sweden
2,004,210,882
2,515,484
EP1597366
DK/EP1597366
EP(FI)1597366
EP(FR)1597366
DE1597366
IT1597366
ES1597366
SE1597366
United Kingdom
EP(UK)1597366
Japan
New Zealand
USA
USA
USA
USA
4,753,863
541,637
US7468356
US8217017
9,084,770
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Patent Registered
Expiry
2025*
2025*
2025*
Relying on data
exclusivity
2025
2028*
2024 *
2024
2024*
2024*
2024*
2024*
2024*
2024*
2024*
2024*
2024*
2024
2025*
2025*
2029
2029
US14/731203
(continuation of US12/578,471)
Under Examination
* Potential for up to 5 year extensions to the patent term once the product is a registered drug.
** ATL1101, ATL1102, ATL1103 are also protected internationally by other Isis proprietary antisense technology
patents and applications to which Antisense Therapeutics has world-wide license including US7015315 to 2023.
Antisense technology patents are potentially extendible for up to 5 years to 2028 in the US.
*** Designates all member states of European patent countries including all extension states.
ANNUAL REPORT 2016 (cid:122) 9
Directors' Report
Directors
The Board of Directors of Antisense Therapeutics present their report on the consolidated entity (referred to hereafter
as ‘the Company’) consisting of Antisense Therapeutics Limited and the entities it controlled at the end of, or during,
the Year Ended 30 June 2016. In order to comply with the provisions of the Corporations Act 2001, the Board of
Directors report as follows:
Mr. Robert W Moses
Independent Non-Executive Chairman
Mr. Mark Diamond
Managing Director
Qualifi cations:
BA, MBA, FAICD, FAIM
Appointed to the Board:
23 October 2001
Last elected by shareholders: 1 November 2013
Experience:
Robert (Bob) Moses was formerly Corporate Vice
President of CSL Limited. Mr. Moses draws on more
than 40 years’ experience in the pharmaceutical/
biotechnology industry. During the period 1993-2001,
Mr. Moses played a central role in CSL's development
internationally. Prior to joining CSL, Mr. Moses was
Managing Director of commercial law fi rm Freehills,
Chairman and CEO of a NASDAQ listed medical
service company, and Corporate Manager of New
Business Development at ICI (now Orica). Mr. Moses
is also the former Non-Executive Chairman of TGR
Biosciences Pty Ltd. Mr. Moses also spent 17 years
in various management roles at the multinational
pharmaceutical company Eli Lilly.
Interest in shares & options: 3,354,434 ordinary
shares and 708,001 options over ordinary shares.
Committees: Chairman of the Remuneration
Committee and member of the Audit Committee.
Directorships held in other listed entities: Nil
Dr Graham Mitchell
Independent Non-Executive Director
Qualifi cations:
Appointed to the Board:
BSc, MBA, MAICD
31 October 2001
Experience:
Mark Diamond has over 26 years’ experience in
the pharmaceutical and biotechnology industry.
Before joining Antisense Therapeutics Limited as
MD and CEO in 2001, Mr. Diamond was employed
in the US as Director, Project Planning/Business
Development at Faulding Pharmaceuticals. Prior
to this he held the positions of Senior Manager,
Business Development and In-licensing within
Faulding's European operation based in the UK and
International Business Development Manager with
Faulding in Australia.
Interest in shares & options:
1,457,914 ordinary shares and 351,189 options over
ordinary shares.
Committees:
Nil
Directorships held in other listed entities:
Nil
AO, RDA, BVSc, PhD, FACVSc, FTSE, FAA
24 October 2001
Qualifi cations:
Appointed to the Board:
Experience:
Graham Mitchell through Foursight Associates Pty Ltd ("Foursight"), acts as joint Chief Scientist for the Victorian
Government Department of Environment and Primary Industries. Dr. Mitchell is a Non-Executive Director of Avipep
Pty Ltd and is a Principal of Foursight. Dr. Mitchell has held the position of Director of Research in the R&D Division
of CSL Limited and for many years was a research scientist at The Walter & Eliza Hall Institute (WEHI). He is currently
a Board Member of WEHI.
Last elected by shareholders: 6 November 2014
Interest in shares & options: 240,180 ordinary shares and 60,582 options over ordinary shares.
Committees: Member of the Remuneration Committee and Chairman of the Audit Committee.
Directorships held in other listed entities: Nil
10 (cid:122) ANTISENSE THERAPEUTICS
Dr Gary Pace
Independent Non-Executive Director
Dr Chris Belyea
Independent Non-Executive Director
Qualifi cations:
Appointed to the Board:
BSc, PhD
9 November 2015
Experience:
Dr Pace has more than 40 years of experience in the
development and commercialization of advanced
technologies in biotechnology, pharmaceuticals,
medical devices and the food industries. He has long-
term board level experience with both multi-billion and
small cap companies. In 2003 Dr Pace was awarded
a Centenary Medal by the Australian Government
“for service to Australian society in research and
development”, and in 2011 was awarded Director of
the Year (corporate governance) by the San Diego
Directors Forum. In addition he has held visiting
academic positions at the Massachusetts Institute
of Technology and the University of Queensland. Dr
Pace is an elected Fellow of the Australian Academy of
Technological Sciences and Engineering.
Interest in shares & options:
Nil
Committees:
Nil
Directorships held in other listed entities:
Dr Pace is currently a director of ResMed, Pacira
Pharmaceuticals Inc., Transition Therapeutics Inc. and
Simavita Limited.
Qualifi cations:
Appointed to the Board:
Resigned from the Board:
BSc(Hons), PhD, FIPAA
13 November 2000
12 November 2015
Experience:
Chris Belyea has a PhD in physics from the University
of Melbourne and is a registered patent attorney. He
became the founding CEO of Antisense Therapeutics
Limited in November 2000 and remained in this
role until January 2002 (shortly after Antisense
Therapeutics Limited was listed on the Australian Stock
Exchange). He worked for the Australian patent fi rm
Griffi th Hack & Co for 5 years before joining Circadian
Technologies Limited as its Licensing and Projects
Manager in 1996. In 1998 Dr. Belyea became founding
CEO and member of the board of biotechnology
company, Metabolic Pharmaceuticals Ltd. He served
with Metabolic as an executive until mid-2008, and
now runs his own patent attorney practice.
Interest in shares & options:
285,579 ordinary shares and 61,222 options over
ordinary shares.
Committees:
Chairman of the Audit Committee and member of the
Remuneration Committee (up to 12 November 2015)
Directorships held in other listed entities:
Nil
Mr William Goolsbee
Independent Non-Executive Director
Mr Phillip Hains
Company Secretary and Chief Financial Offi cer
Appointed to the Board:
9 November 2006
Experience:
Phillip Hains is a Chartered Accountant operating
a specialist public practice, 'The CFO Solution'.
The CFO Solution focuses on providing back offi ce
support, fi nancial reporting and compliance systems
for listed public companies. A specialist in the public
company environment, Mr Hains has served the needs
of a number of company boards and their related
committees. He has over 20 years' experience in
providing businesses with accounting, administration,
compliance and general management services.
Qualifications:
Appointed to the Board:
BA
15 October 2015
Experience:
Mr. Goolsbee was founder, Chairman and Chief
Executive Offi cer of Horizon Medical Inc. from 1987
until its acquisition by a unit of UBS Private Equity
in 2002. Mr. Goolsbee was a founding Director of
ImmunoTherapy Corporation in 1993, and became
Chairman in 1995, a position he held until overseeing
the successful acquisition of ImmunoTherapy by AVI
Biopharma, Inc. (now Sarepta Therapeutics) in 1998.
Mr. Goolsbee served as Chairman of privately held BMG
Pharma LLC, a pharmaceutical company, from 2006
through 2011 and of Metrodora Therapeutics until 2015.
Interest in shares & options: Nil
Committees: Nil
DiDirector hshiips hheldld iinn othher lilist ded entiitiies:
Mr Goolsbee is currently a Director of Sarepta
Therappeuticsc Inc.
ANNUAL REPORT 2016 (cid:122) 11
Directors' Report continued
Principal Activities
The principal activity of the Company during the fi nancial
year was the research and development of novel antisense
pharmaceuticals.
Dividends
No dividends have been paid or declared since the
end of the previous fi nancial year, nor do the Directors
recommend the declaration of a dividend.
• effi cacy, safety and regulatory risk of pre-clinical and
clinical pharmaceutical development;
• fi nancial position of the Company and the fi nancial
outlook;
• economic outlook and share market activity;
• changing government policy (Australian and
overseas);
• competitors' products/research and development
programs;
Signifi cant Changes in the State of Aff airs
• market demand and market prices for therapeutics;
There have been no signifi cant changes in the state of
aff airs of the Group during the year.
Signifi cant Events After the Balance Date
There have been no signifi cant events occurring after
the balance date which may aff ect either the Company's
operations or results of those operations or the
Company's state of aff airs.
Likely Developments and Expected Results
The likely developments in the Company's operations, to
the extent that such matters can be commented upon, are
covered in the 'Operations Report’.
• environmental regulations;
• ethical issues relating to pharmaceutical research
and development;
• the status of partnership and contractor
relationships;
• other government regulations including those
specifi cally relating to the biotechnology and health
industries; and
• occupational health and safety and equal
opportunity law.
Management will continue to perform a regular review of
the following:
Operating and Financial Review
• the major risks that occur within the business;
The net loss after tax of the Group for Year Ended
30 June 2016 was $2,514,443 (2015 profi t: $706,918)
This result has been achieved after fully expensing all
research and development costs.
The Company had a cash reserve of $4,800,718 at 30
June 2016.
The 'Operations Report' provides further details
regarding the progress made by the Company since
the prior fi nancial period, which have contributed to its
results for the year.
Risk Management
The Board is responsible for overseeing the establishment
and implementation of the risk management system, and
to review and assess the eff ectiveness of the Company's
implementation of that system on a regular basis.
The Board and senior management will continue to
identify the general areas of risk and their impact on the
activities of the Company. The potential risk areas for the
Company include:
• the degree of risk involved;
• the current approach to managing the risk; and
• where appropriate, determine:
• any inadequacies of the current approach; and
• possible new approaches that more effi ciently and
eff ectively address the risk.
Biotechnology Companies
– Inherent Risks
Pharmaceutical Research and Development
(R&D)
Pharmaceutical R&D involves scientifi c uncertainty and
long lead times. Risks inherent in these activities include
uncertainty of the outcome of the Company's research
results; diffi culties or delays in development of any of the
Company's drug candidates; and general uncertainty related
to the scientifi c development of a new medical therapy.
12 (cid:122) ANTISENSE THERAPEUTICS
The Company's drug compounds require signifi cant
pre-clinical and human clinical development prior to
commercialisation, which is uncertain, expensive and
time consuming. There may be adverse side eff ects or
inadequate therapeutic effi cacy of the Company's drug
candidates which would prevent further commercialisation.
There may be diffi culties or delays in testing any of the
Company's drug candidates. There may also be adverse
outcomes with the broader clinical application of the
antisense technology platform which could have a negative
impact on the Company's specifi c drug development and
commercialisation plans.
No assurance can be given that the Company's product
development eff orts will be successful, that any potential
product will be safe and effi cacious, that required
regulatory approvals will be obtained, that the Company's
products will be capable of being produced in commercial
quantities at an acceptable cost or at all, that the Company
will have access to suffi cient capital to successfully advance
the products through development or to fi nd suitable
development or commercial partners for the development
and or commercialisation of the products and that any
products, if introduced, will achieve market acceptance.
Partnering and licensing
Due to the signifi cant costs in drug discovery and
development it is common for biotechnology companies
to partner with larger biotechnology or pharmaceutical
companies to help progress drug development. While
the Company has previously entered into such licensing
agreements with pharmaceutical partners, there is no
guarantee that the Company will be able to maintain such
partnerships or license its products in the future. There
is also no guarantee that the Company will receive back
all the data generated by or related intellectual property
from its licensing partners. In the event that the Company
does license or partner the drugs in its pipeline, there is
no assurance as to the attractiveness of the commercial
terms nor any guarantee that the agreements will generate
a material commercial return for the Company.
Regulatory Approvals
Complex government health regulations, which are
subject to change, add uncertainty to obtaining approval
to undertake clinical development and obtain marketing
approval for pharmaceutical products.
Delays may be experienced in obtaining such approvals, or
the regulatory authorities may require repeat of diff erent
or expanded animal safety studies or human clinical
trials, and these may add to the development cost and
delay products from moving into the next phase of drug
development and up to the point of entering the market
place. This may adversely aff ect the competitive position
of products and the fi nancial value of the drug candidates
to the Company.
There can be no assurance that regulatory clearance will
be obtained for a product or that the data obtained from
clinical trials will not be subject to varying interpretations.
There can be no assurance that the regulatory authorities
will agree with the Company's assessment of future clinical
trial results.
Competition
The Company will always remain subject to the material
risk arising from the intense competition that exists in the
pharmaceutical industry. A material risk therefore exists
that one or more competitive products may be in human
clinical development now or may enter into human clinical
development in the future. Competitive products focusing
on or directed at the same diseases or protein targets as
those that the Company is working on may be developed
by pharmaceutical companies or other antisense drug
companies including Ionis or any of its other collaboration
partners or licensees. Such products could prove more
effi cacious, safer, more cost eff ective or more acceptable
to patients than the Company product. It is possible that
a competitor may be in that market place sooner than the
Company and establish itself as the preferred product.
Technology and Intellectual Property Rights
Securing rights to technology and patents is an integral
part of securing potential product value in the outcomes
of pharmaceutical R&D. The Company's success depends,
in part, on its ability to obtain patents, maintain trade
secret protection and operate without infringing the
proprietary rights of third parties. There can be no
assurance that any patents which the Company may own,
access or control will aff ord the Company commercially
signifi cant protection of its technology or its products
or have commercial application, or that access to these
patents will mean that the Company will be free to
commercialise its drug candidates. The granting of a
patent does not guarantee that the rights of others are not
infringed or that competitors will not develop technology
or products to avoid the Company's patented technology
or try to invalidate the Company’s patents, or that it will
be commercially viable for the Company to defend against
such potential actions of competitors.
ANNUAL REPORT 2016 (cid:122) 13
Directors' Report continued
Biotechnology Companies – Inherent Risks continued
Environmental Regulation and Performance
The Company is involved in pharmaceutical research and development, much of which is contracted out to third parties,
and it is the Director’s understanding that these activities do not create any signifi cant/material environmental impact. To
the best of the Company's knowledge, the scientifi c research activities undertaken by, or on behalf of, the Company are
in full compliance with all prescribed environmental regulations.
Directors' Meetings
The number of meetings of Directors (including meetings of committees of Directors) held during the year and the
number of meetings attended by each Director were as follows:
Board Meetings
Meetings of committees
Audit
Remuneration
No. eligible to
attend
No. attended
No. eligible to
attend
No. attended
No. eligible to
attend
No. attended
Robert W Moses
Mr Mark Diamond
Dr Graham Mitchell
Dr Gary Pace
Mr William Goolsbee
Dr Chris Belyea
6
6
6
4
5
2
Committee Membership
6
6
6
3
4
2
2
2
2
1
1
1
2
2
2
1
1
1
2
2
2
-
1
2
2
2
2
-
1
2
As at the date of this report the Company had an Audit Committee and Remuneration Committee, with membership of
the committees as follows:
Audit Committee
Remuneration Committee
Chairman
Dr Chris Belyea (to 12 November 2015);
and Dr Graham Mitchell (from 23 February 2016)
Mr Robert W Moses
Members
Mr Robert W Moses
Dr Chris Belyea (to 12 November 2015);
and Dr Graham Mitchell
Indemnifi cation and Insurance of Directors and Offi cers
Under the Company’s constitution:
(a) To the extent permitted by law and subject to the restrictions in section 199A and 199B of the Corporations Act
2001, the Company indemnifi es every person who is or has been an offi cer of the Company against any liability
(other than for legal costs) incurred by that person as an offi cer of the Company where the Company requested
the offi cer to accept appointment as Director.
(b) To the extent permitted by law and subject to the restrictions in sections 199A and 199B of the Corporations Act
2001, the Company indemnifi es every person who is or has been an offi cer of the Company against reasonable
legal costs incurred in defending an action for a liability incurred by that person as an offi cer of the Company.
14 (cid:122) ANTISENSE THERAPEUTICS
The Company has insured its Directors, the Company
Secretaries and executive offi cers for the fi nancial year
ended 30 June 2016. Under the Company's Directors' and
Offi cers' Liability Insurance Policy, the Company cannot
release to any third party or otherwise publish details of
the nature of the liabilities insured by the policy or the
amount of the premium. Accordingly, the Company relies
on section 300(9) of the Corporations Act 2001 to exempt
it from the requirement to disclose the nature of the
liability insured against and the premium amount of the
relevant policy.
The Company also has in place a Deed of Indemnity, Access
and Insurance with each of the Directors. This Deed:
(1) indemnifi es the Director to the extent permitted by
law and the Constitution against certain liabilities
and legal costs incurred by the Director as an
offi cer of any Group Company;
(2) requires the Company to maintain, and pay the
premium for, a D&O Policy in respect of the
Director; and
(3) provides the Director with access to particular
papers and documents requested by the Director
for a Permitted Purpose,
both during the time that the Director holds offi ce and
for a seven year period after the Director ceases to be an
offi cer of any Group Company, on the terms and conditions
contained in the Deed.
Indemnifi cation of Auditors - Ernst and Young
To the extent permitted by law, the Company has agreed
to indemnify its auditors, Ernst and Young, as part of the
terms of its audit engagement agreement against claims
by third parties arising from the audit (for an unspecifi ed
amount). No payment has been made to indemnify Ernst
and Young during or since the fi nancial year
Share Options on Issue as at the Date of the
Report
UNISSUED SHARES
The unissued ordinary shares of Antisense Therapeutics
Limited under option as at the date of this report were:
Class
Date of Expiry
Exercise
Price
No. Under
Option
ANPO
31 January 2017
$0.27
46,950,984
ANPAU
30 July 2018
$0.00
72,000
Auditor Independence and Non-Audit Services
AUDITOR’S INDEPENDENCE DECLARATION
The Auditors Independence Declaration as required under
section 307C of the Corporations Act 2001 for the year
ended 30 June 2016 has been received and can be found
in the ‘Auditor’s Independence Declaration’ section of this
Annual Report.
Non-Audit Services
The following non-audit services were provided by
the entity's auditor, Ernst and Young. The Directors
are satisfi ed that the provision of non-audit services is
compatible with the general standard of independence
for auditors imposed by the Corporations Act 2001.
The nature and scope of each type of non-audit service
provided means that auditor independence was not
compromised.
Ernst and Young received or are due to receive the
following amounts for the provision of non-audit services:
Proceedings on Behalf of the Company
Tax compliance services
No person has applied to the Court under section
237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene in
any proceedings to which the Company is a party, for the
purpose of taking responsibility on behalf of the Company
for all or part of those proceedings.
No proceedings have been brought or intervened in on
behalf of the Company with leave of the Court under
section 237 of the Corporations Act 2001.
2016
$
19,250
19,250
2015
$
17,000
17,000
ANNUAL REPORT 2016 (cid:122) 15
Directors' Report continued
Remuneration Report (Audited)
2. Principles Used to Determine the
1. Remuneration Report Overview
This Remuneration Report outlines the Director and
Executive remuneration arrangements of the Company as
required by the Corporations Act 2001 and its Regulations.
This report details the nature and amount of remuneration
of each Director of the Company and all other Key
Management Personnel.
For the purposes of this report, Key Management
Personnel (KMP) are defi ned as those persons having
authority and responsibility for planning, directing and
controlling the major activities of the Company, directly
or indirectly, including any Director (whether Executive or
otherwise) of the Company.
This report details the nature and amount of remuneration
for each Director of the Company, and for the other Key
Management Personnel.
Name
Position
Directors:
Mr Robert W Moses
Independent Non-Executive
Chairman
Mr Mark Diamond
Managing Director
Nature and Amount of Remuneration
A. Remuneration Policy
The Remuneration Policy ensures that Directors and
Senior Management are appropriately remunerated having
regard to their relevant experience, their performance, the
performance of the Company, industry norms/standards
and the general pay environment as appropriate. The
Remuneration Policy has been established to enable the
Company to attract, motivate and retain suitably qualifi ed
Directors and Senior Management who will create value
for shareholders.
B. Remuneration Policy versus Company
Performance
The Company's Remuneration Policy is not directly based
on the Company's earnings. Prior to the year ended 30
June 2016, the Company's earnings had remained negative
since inception due to the nature of the Company.
Shareholder wealth refl ects this speculative and volatile
market sector. No dividends have ever been declared by
the Company.
The Company continues to focus on the research and
development of its intellectual property portfolio with the
objective of achieving key development and commercial
milestones in order to add further Shareholder value.
Dr Graham Mitchell
Independent Non-Executive
Director
The Company’s performance over the previous fi ve
fi nancial years is as follows:
Mr William Goolsbee Independent Non-Executive
Dr Gary Pace
Dr Chris Belyea
Director (Appointed 15 October
2015)
Independent Non-Executive
Director (Appointed 9 November
2015)
Independent Non-Executive
Director (Resigned 12 November
2015)
Other key management personnel:
Dr George Tachas
Mr Phillip Hains
Director, Drug Discovery &
Patents
Company Secretary and Chief
Financial Offi cer
Net loss fi nancial year 2016
Net profi t fi nancial year 2015
Net loss fi nancial year 2014
Net loss fi nancial year 2013
Net loss fi nancial year 2012
$2,514,443
$706,918
$3,013,272
$2,454,842
$1,801,278
The Company’s share price over the previous fi ve fi nancial
years is as follows:
30 June 2016
30 June 2015
30 June 2014
30 June 2013
30 June 2012
$0.031
$0.12
$0.14
$0.10
$0.18
16 (cid:122) ANTISENSE THERAPEUTICS
C. The Remuneration Committee
E. Executive Director and Executive Offi cer
The Remuneration Committee of the Board of
Directors of the Company is responsible for overseeing
the Remuneration Policy of the Company and for
recommending or making such changes to the policy as it
deems appropriate.
D. Non-Executive Director Remuneration
Remuneration
OBJECTIVE
The Remuneration Policy ensures that Executive
Directors are appropriately remunerated having regard
to their relevant experience, individual performance, the
performance of the Company, industry norms/standards
and the general pay environment as appropriate.
OBJECTIVE
STRUCTURE
The Remuneration Policy ensures that Non-Executive
Directors are appropriately remunerated having regard
to their relevant experience, individual performance, the
performance of the Company, industry norms/standards
and the general pay environment as appropriate.
STRUCTURE
The Company's Constitution and the ASX Listing Rules
specify that the aggregate remuneration of
Non-Executive Directors shall be determined from time to
time by a General Meeting. An amount (not exceeding the
amount approved at the General Meeting) is determined
by the Board and then divided between the Non-Executive
Directors as agreed. The latest determination was at the
General Meeting held on 13 November
2001 when shareholders approved the aggregate
maximum sum to be paid or provided as remuneration to
the Directors as a whole (other than the Managing Director
and Executive Directors) for their services as $300,000
per annum.
In the year ended 30 June 2016, the Non-Executive
Directors were remunerated in aggregate $130,293 per
annum, excluding superannuation.
The manner in which the aggregate remuneration is
apportioned amongst Non-Executive Directors is reviewed
periodically.
The Board is responsible for reviewing its own
performance. Board, and Board committee performance, is
monitored on an informal basis throughout the year with a
formal review conducted during the fi nancial year.
No retirement benefi ts are payable other than statutory
superannuation, if applicable.
The Non-Executive Directors are responsible for
evaluating the performance of the Managing Director,
who in turn evaluates the performance of the other
Senior Executives. The evaluation process is intended to
assess the Company's business performance, whether
long-term strategic objectives are being achieved and
the achievement of individual performance objectives.
The performance of the Managing Director and
Senior Executives are monitored on an informal
basis throughout the year and a formal evaluation is
performed annually.
FIXED REMUNERATION
Executives' fi xed remuneration comprises salary and
superannuation and is reviewed annually by the Managing
Director, and in turn, the Remuneration Committee. This
review takes into account the Executives' experience,
performance in achieving agreed objectives and market
factors as appropriate.
VARIABLE REMUNERATION
- SHORT TERM INCENTIVE SCHEME
All Executives are entitled to participate in the Employee
Short Term Incentive Scheme which provides for annual
cash bonuses for outstanding performance in the
achievement of key corporate and individual objectives.
The Remuneration Committee approves the issue of cash
bonuses following the recommendations of the Managing
Director in his review of the performance of the Executives
and the Company as a whole.
The Short Term Incentive Scheme operates as follows:
The Board determines whether Executives are eligible
for bonuses on an annual basis. The cash bonuses, based
on the recommendations of the Managing Director for
outstanding performance, are not linked to any specifi c
Key Result Areas (KRA’s). The maximum achievable
bonus for an Executive is 35% of the Executive's base
salary. There were no bonuses paid under the Short Term
Incentive Scheme during the year.
ANNUAL REPORT 2016 (cid:122) 17
Directors' Report continued
Remuneration Report (Audited) continued
VARIABLE REMUNERATION – LONG TERM INCENTIVE SCHEME
Executives may also be provided with longer-term incentives through the Company's Employee Option Plan, to allow the
Executives to participate in and benefi t from the growth of the Company as a result of their eff orts and to assist in motivating
and retaining those key employees over the long term. Continued service is the condition attached to the vesting of the
options. The Board at its discretion determines the total number of options granted to each Executive. There were no options
granted under the Long Term Incentive Scheme during the year.
3. Details of Remuneration
A. Details of Remuneration
The remuneration for each Director and each of the other Key Management Personnel of the Company during the Year
Ended 30 June 2016 was as follows:
30 June 2016
Directors
Mr Robert W Moses
Mr Mark Diamond
Dr Chris Belyea (1)
Dr Graham Mitchell
Mr William Goolsbee
Dr Gary Pace
Other Key Management Personnel
Dr George Tachas
Mr Phillip Hains (2)
Short-term employee
benefi ts
Post-employment
Benefi ts
Long-term
Benefi ts
Cash salary & fees
Pension & Super
Contribution
Long Service
Leave
$
$
Total
$
61,641
$
-
6,966
400,416
-
-
-
-
20,531
39,968
48,336
43,631
5,348
27,450
1,781
3,468
-
-
38,047
6,966
614,523
21,180
-
21,180
59,227
4,191
245,556
-
99,000
4,191
11,157
344,556
959,079
56,293
366,000
18,750
36,500
48,336
43,631
569,510
220,185
99,000
319,185
888,695
(1) Dr Chris Belyea resigned from the Board of Directors on 12 November 2015.
(2) Remunerated through The CFO Solution (see Section 5 below and the Company Secretary details above for further detail)
18 (cid:122) ANTISENSE THERAPEUTICS
The remuneration for each Director and each of the other Key Management Personnel of the Company during the Year
Ended 30 June 2015 was as follows:
30 June 2015
Directors
Mr Robert W Moses
Mr Mark Diamond
Dr Chris Belyea
Dr Graham Mitchell
Other Key Management Personnel
Dr George Tachas
Mr Phillip Hains (1)
Short-term employee
benefi ts
Post-employment
Benefi ts
Long-term
Benefi ts
Cash salary & fees
Pension & Super
Contribution
Long Service
Leave
$
$
56,293
366,000
37,500
36,500
496,293
220,185
99,000
319,185
815,478
5,348
27,450
3,563
3,468
39,829
20,918
-
20,918
60,747
Total
$
61,641
$
-
7,146
400,596
-
-
41,063
39,968
7,146
543,268
4,300
245,403
-
99,000
4,300
11,446
344,403
887,671
(1) Remunerated through The CFO Solution (see Section 5 below and the Company Secretary details above for further detail).
4. Share-Based Compensation
Shareholdings
The number of shares in the Company held during the fi nancial year by each Director and other Key Management Personnel of
the Company, including their personally related parties, are set out below.
No shares were granted to Directors and Key Management Personal during the period as compensation.
30 June 2016
Balance at
start of the
year
Granted as
Compensation
Options
Exercised
Total
Net
Change
Other
Balance held
nominally at
the end of the
reporting period
Directors
Mr Robert W Moses
3,024,434
Mr Mark Diamond
Dr Chris Belyea
Dr Graham Mitchell
Mr William Goolsbee
Dr Gary Pace
1,357,914
285,579
240,180
-
-
4,908,107
Other Key Management Personnel
Dr George Tachas
Mr Phillip Hains (1)
659,236
233,052
892,288
5,800,395
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
330,000
3,354,434
100,000
1,457,914
-
-
-
-
285,579
240,180
-
-
430,000
5,338,107
-
659,236
4,020,877
4,253,929
- 4,020,877
4,913,165
- 4,450,877
10,251,272
-
-
-
-
-
-
-
-
-
-
-
(1) Remunerated through The CFO Solution (see Section 5 below and the Company Secretary details above for further detail).
ANNUAL REPORT 2016 (cid:122) 19
Directors' Report continued
Remuneration Report (Audited) continued
4. Share-Based Compensation continued
Options and Rights
The number of options over ordinary shares in the Company held during the fi nancial year by each Director of Antisense
Therapeutics Limited and other Key Management Personnel of the Company, including their personally related parties, are set
out below:
30 June 2016
Balance at
start of the
year
Granted as
Compen-
sation
Options
Exercised
Net
Change
Other
Total
vested at
end of the
year
Total
vested and
unexercisable
at the end of
the year
Balance held
nominally at
the end of
the reporting
period
Directors
Mr Robert W Moses
708,001
Mr Mark Diamond
Dr Chris Belyea
Dr Graham Mitchell
Mr William Goolsbee
Dr Gary Pace
351,189
61,222
60,582
-
-
1,180,994
Other Key Management Personnel
Dr George Tachas
Mr Phillip Hains (1)
159,276
77,684
236,960
1,417,954
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
708,001
708,001
351,189
61,222
60,582
-
-
351,189
61,222
60,582
-
-
1,180,994
1,180,994
159,276
77,684
159,276
77,684
236,960
236,960
1,417,954
1,417,954
-
-
-
-
-
-
-
-
-
-
-
(1) Remunerated through The CFO Solution (see Section 5 below and the Company Secretary details above for further detail).
5. Employment Contracts of Key Management Personnel
At the date of this report, the employment conditions of the Managing Director, Mr Mark Diamond and other Key
Management Personnel were formalised in contracts of employment. Mr Mark Diamond is employed under a contract,
which commenced on 31 October 2001. Subsequent to this contract a notice period for Mr Diamond of between two and
four months was negotiated depending upon the party ending the agreement.
The Company has a contract with The CFO Solution, a specialist public practice, focusing on providing back offi ce
support, fi nancial reporting and compliance systems for listed public companies. Through this contract the services of Mr
Phillip Hains were provided. The contract commenced on 9 November 2006 and can be terminated with three months’
notice of either party.
20 (cid:122) ANTISENSE THERAPEUTICS
6. Additional Information
(a) Equity issued as part of remuneration for the year ended 30 June 2015
During the fi nancial year ended 30 June 2016, no options were granted, exercised or lapsed by any of the Key
Management Personnel.
(b) Loans to Directors and Other Key Management Personnel
There were no loans made to Directors or other Key Management Personnel of the Company, including their personally
related parties.
(c) Other transactions with Other Key Management Personnel
Transactions between Key Management Personnel are on normal commercial terms and conditions no more favourable
than those available to other parties unless otherwise stated. Transactions with related parties are as follows:
Belyea IP is a patent attorney business operated by Dr Chris Belyea
Service fees paid to Belyea IP during the year:
Patent renewals cost reimbursed to Belyea IP during the year:
Total paid by the Company to Belyea IP during the year:
At the end of the fi nancial year, the Company owed Belyea IP:
2016
$
4,900
70,440
75,340
-
2015
$
5,200
36,422
41,622
-
Dr Chris Belyea resigned from the Board of Directors on 12 November 2015 and therefore any balances with Belyea IP
are not related party balances at 30 June 2016.
Signed in accordance with a resolution of the Directors.
Mr Robert W Moses
Independent Non-Executive Chairman
Mr Mark Diamond
Managing Director and Chief Executive Offi cer
Dated: This day 25th day of August 2016
ANNUAL REPORT 2016 (cid:122) 21
Auditor’s Independence Declaration
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com
Auditor’s Independence Declaration to the Directors of Antisense
Therapeutics Limited
As lead auditor for the audit of Antisense Therapeutics Limited for the fi nancial year ended 30 June 2016, I
declare to the best of my knowledge and belief, there have been:
a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation
to the audit; and
b) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Antisense Therapeutics Limited and the entities it controlled during the
fi nancial year.
Ernst & Young
Joanne Lonergan Partner
25 August 2016
A member fi rm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
22 (cid:122) ANTISENSE THERAPEUTICS
Corporate Governance
The Board of Directors of Antisense Therapeutics
Limited ("the Company") is responsible for the corporate
governance of the Company and guides and monitors
the business and aff airs of the Company on behalf of its
shareholders.
Principle 1:
Lay solid foundations for management
and oversight
The format of the Corporate Governance Statement
is based on the Australian Stock Exchange Corporate
Governance Council's ("the Council") "Corporate
Governance Principles and Recommendations". In
accordance with the Council's recommendations, the
Corporate Governance Statement must contain certain
specifi c information and must disclose the extent to which
the Company has followed the guidelines during the
period. Where a recommendation has not been followed,
that fact must be disclosed, together will the reasons for
the departure. The Company’s Corporate Governance
Statement is structured with reference to the Council's
principles and recommendations, which are as follows:
Principle 1. Lay solid foundations for management and
oversight
Principle 2. Structure the board to add value
Principle 3. Act ethically and responsibly
Principle 4. Safeguard integrity in corporate reporting
Principle 5. Make timely and balanced disclosure
Principle 6. Respect the rights of shareholders
Principle 7. Recognise and manage risk
Principle 8. Remunerate fairly and responsibly
Commensurate with the spirit of the ASX Corporate
Governance Principles and Recommendations, the
Company has followed each recommendation where
the Board has considered the recommendation to be
an appropriate benchmark for corporate governance
practices, taking into account factors such as the size
of the Company and the Board, resources available
and activities of the Company. Where the Company's
corporate governance practices depart from the
Principles and Recommendations, the Board has off ered
full disclosure of the nature of, and reason for, the
adoption of its own practice.
The Company’s corporate governance practices were
in place throughout the year ended 30 June 2016. For
further information on the corporate governance policies
adopted by the Company, please refer to its website:
www.antisense.com.au
Role of the Board
It is the role of the Board of Directors to represent and
protect the interests of the Company's shareholders. The
Board is responsible for the corporate governance of the
Company and guides and monitors the business and aff airs
of the Company.
In furtherance of its responsibilities, the Board of
Directors will:
• review, evaluate, provide input into and approve,
on a regular basis, the Company's corporate
governance strategy;
• monitor senior management's performance and
implementation of strategy, and ensure appropriate
resources are available;
• review, evaluate and approve the Company's budget
and forecasts;
• review, evaluate, approve and monitor major
resource allocations and capital investments, and
any acquisitions and divestitures;
• review and monitor the fi nancial and operating
results of the Company;
• review and evaluate the overall corporate
organisational structure, the assignment of senior
management responsibilities and plans for senior
management development and succession;
• review, evaluate and approve compensation strategy
as it relates to senior management of the Company;
• review and ratify systems of risk management and
internal compliance and control, codes of conduct,
and legal compliance;
• appoint and remove the Managing Director (Chief
Executive Offi cer);
• ratify the appointment and, where appropriate,
the removal of the Chief Financial Offi cer and the
Company Secretary;
• monitor its own performance and recommend and
implement appropriate changes in composition
and size.
ANNUAL REPORT 2016 (cid:122) 23
Corporate Governance continued
Role of Management
Through the Chief Executive Offi cer / Managing Director,
management is responsible to the Board for the:
1) Development and implementation of agreed
corporate strategy and performance objectives;
2) Undertaking the day to day activities of the
Company;
3) Identifying all matters to be included in a risk
profi le of the Company and ensuring that eff ective
risk management systems are implemented and
adhered to;
4) Observing the code of conduct;
5) Ensuring that the Board is fully informed of all
matters which may have a material impact on the
ability of the Company to meet its obligations.
Board Appointments
The Company undertakes comprehensive reference checks
prior to appointing a director, or putting that person
forward as a candidate to ensure that person is competent,
experienced, and would not be impaired in any way from
undertaking the duties of director. The Company provides
relevant information to shareholders for their consideration
about the attributes of candidates together with whether
the Board supports the appointment or re-election.
The terms of the appointment of a non-executive director,
executive directors and senior executives are agreed upon
and set out in writing at the time of appointment.
The Company Secretary
The Company Secretary is accountable directly to the
Board, through the Chairman, on all matters to do with
the proper functioning of the Board, including agendas,
Board papers and minutes, advising the Board and its
Committees (as applicable) on governance matters,
monitoring that the Board and Committee policies and
procedures are followed, communication with regulatory
bodies and the ASX and statutory and other fi lings.
Diversity
The Company values the diff erences between its
personnel and the valuable contribution that these
diff erences can make to the Company. The Company is an
equal opportunity employer and aims to recruit executives
and employees from as diverse a pool of qualifi ed
candidates as reasonably possible based on their skills,
qualifi cations and experience.
24 (cid:122) ANTISENSE THERAPEUTICS
The Company is committed to increasing diversity
amongst its employees, and not just in the area of gender
diversity. Our workforce is employed based on the
right person for the job regardless of their gender, age,
nationality, race, religious beliefs, cultural background,
sexuality or physical ability or appearance.
Executive and Board positions are fi lled by the best
candidates available without discrimination. The
Company is committed to increasing gender diversity
within these positions when appropriate appointments
become available. The Company is also committed to
identifying suitable persons within the organisation, and
where appropriate opportunities exist, advance diversity
to support the promotion of talented employees into
management positions.
The Company has not set any gender specifi c diversity
objectives as it believes that multicultural diversity and
other diversity factors are equally important within its
organisation.
The following table demonstrates the Company’s gender
diversity as at 30 June 2016:
Number of
Males
Number of
Females
Directors
Key Management Personnel
Other Company Employees
5
2
-
-
-
2
The Company employed 9 employees at the end of 2016
(2015: 8 employees).
Board Performance Review
The Board considers the ongoing development and
improvement of its own performance, the performance
of individual directors and Board Committees as critical to
eff ective governance.
The Board has adopted an informal self-evaluation process
to measure its own performance. The performance of the
Board and individual directors is reviewed at least every
year by the Board as a whole. This process includes a
review in relation to the composition and skills mix of the
Directors of the Company. Performance reviews involve
analysis based on key performance indicators aligned with
the fi nancial and non-fi nancial objectives of the Company.
A performance review in accordance with the processes
disclosed occurred during the 2016 fi nancial year.
Performance Review of KMP
On at least an annual basis, the Board conducts a formal
performance review of the Chief Executive Offi cer and
any other key management personnel (KMP). The Board
assesses the performance of KMP against qualitative and
quantitative key performance indicators relevant to each
KMP. A performance review of KMP occurred during the
2016 fi nancial year in accordance with this process.
Independent Advice
The Board has procedures to allow Directors, in the
furtherance of their duties, to seek independent
professional advice at the Company's expense.
Principle 2:
Structure the Board to add value
Board composition
The length of service, skills, experience and expertise
of each Director in offi ce at the date of this report and
throughout the 2016 fi nancial year are included in the
Directors' Report under the section headed 'Directors'. The
Company's Board Charter stipulates that at least 50%
of the Directors on the board should be independent
Directors. Directors of Antisense Therapeutics Limited are
considered to be independent when they are independent
of management and free from any business or other
relationship that could materially interfere with the
exercise of their independent judgement.
In the context of Director independence, to be considered
independent, a Non-Executive Director may not have a
direct or indirect material relationship with the Company.
The board considers that a material relationship is one
which impairs or inhibits, or has the potential to impair or
inhibit, a Director's exercise of judgement on behalf of the
Company and its shareholders.
From a quantitative perspective, an item is considered to
be quantitatively immaterial if it is equal to or less than 5%
of the relevant base amount. It is considered to be material
(unless there is qualitative evidence to the contrary) if it is
equal to or greater than 10% of the relevant base amount.
In accordance with the defi nition of independence above,
and the materiality thresholds described, the majority of
Directors are independent as set out below:
Name
Position
Mr Robert W
Moses
Independent Non-Executive
Chairman
Dr Graham Mitchell
Dr Chris Belyea
Dr Gary Pace
Mr William
Goolsbee
Independent Non-Executive
Director
Independent Non-Executive
Director
Independent Non-Executive
Director (Appointed 9 November
2015)
Independent Non-Executive
Director (Appointed 15 October
2015)
In accordance with the defi nition of independence above,
and the materiality thresholds described, the majority of
Directors are independent as set out below:
Name
Term in Offi ce
Mr Robert W
Moses
15 years
Mr Mark Diamond
15 years
Dr Chris Belyea
16 years (Resigned 12 November
2015)
Dr Graham Mitchell
15 years
Mr William
Goolsbee
Since 15 October 2015
Dr Gary Pace
Since 9 November 2015
To ensure the Board is appropriately equipped to discharge
its responsibilities, it has developed guidelines for the
nomination and selection of Directors and for the operation
of the Board. As the Company's Board is not a large board,
a formal nomination committee has not been established,
as it is perceived that no real effi ciencies would be gained
from the existence of such a committee. The charter
of the nomination committee has been incorporated
into the Board Charter and by this action the Board of
Directors considers all matters that would be relevant for a
nomination committee. For additional details please refer
to the Company's Board Charter on its website.
ANNUAL REPORT 2016 (cid:122) 25
Corporate Governance continued
Principle 2:
Structure the Board to add value cont'd
Induction of New Directors and Ongoing
Development
Any new Directors will be issued with a formal Letter of
Appointment that sets out the key terms and conditions
of their appointment, including Director's duties, rights
and responsibilities, the time commitment envisaged, and
the Board's expectations regarding involvement with any
Committee work.
A new director induction program is in place and Directors
are encouraged to engage in professional development
activities to develop and maintain the skills and knowledge
needed to perform their role as Directors eff ectively.
Principle 3:
Act ethically and responsibly
Code of Conduct
As part of its commitment to recognising the legitimate
interests of stakeholders, the Company has established a
Code of Conduct to guide compliance with legal and other
obligations to legitimate stakeholders.
The Board acknowledges the legitimate interest of various
stakeholders such as employees, clients, customers,
government authorities, creditors and the community
as a whole. As a good corporate citizen, it encourages
compliance and commitment to appropriate corporate
practices that are fair and ethical via its 'Code of Conduct'.
Trading in Company Securities
The Company has a 'Code of Practice - Buying & Selling
of Shares' that regulates the dealings by Directors and
employees, in shares, options and other securities issued
by the Company. The policy has been formulated to
ensure that Directors and employees are aware of the
legal restrictions on trading in Company securities while in
possession of unpublished price sensitive information.
26 (cid:122) ANTISENSE THERAPEUTICS
Principle 4:
Safeguard integrity in corporate
reporting
Audit Committee
The Audit Committee operates under a charter approved
by the Board. It is the Board's responsibility to ensure that
an eff ective control framework exists within the entity. This
includes ensuring that there are internal controls to deal
with both the eff ectiveness and effi ciency of signifi cant
business processes. This includes the safeguarding of assets,
the maintenance of proper accounting records and the
reliability of fi nancial information as well as non-fi nancial
considerations. The Board has delegated the responsibility
for the establishment and maintenance of a framework of
internal control and ethical standards for the management of
the Company to the Audit Committee.
The Audit Committee also provides the Board with
additional assurance regarding the reliability of fi nancial
information for inclusion in the fi nancial statements. All
members of the Audit Committee are Non-Executive
Directors. The Audit Committee is also responsible for the
nomination of the external auditor and for reviewing the
adequacy of the scope and quality of the annual statutory
audit and half year statutory review. The Audit Committee
Charter can be found on the Company's website.
The Audit Committee consists of two independent Non-
Executive Directors. Given the current size of the Company,
the Board believes that an Audit Committee consisting
of two members is suffi cient to enable the committee to
discharge its mandate eff ectively. The members of the
Audit Committee during the year were Dr Chris Belyea
(Chairperson) and Mr Robert W Moses.
For details on the number of meetings for the Audit
Committee held during the year and the attendances at
those meetings, refer to the Directors' Report under the
section headed 'Meetings of Directors'.
CEO and CFO Declarations
The CEO and CFO have provided the Board with a
declaration that, in their opinion, the fi nancial records
of the entity have been properly maintained and that
the fi nancial statements comply with the appropriate
accounting standards and give a true and fair view of the
fi nancial position and performance of the entity and that
the opinion has been formed on the basis of a sound
system of risk management and internal control which is
operating eff ectively.
External Auditor
The Company's external auditor attends each annual
general meeting and is available to answer any questions
with regard to the conduct of the audit and their report.
Prior approval of the Board must be gained for non-audit
work to be performed by the external auditor. There are
qualitative limits on this non-audit work to ensure that the
independence of the auditor is maintained.
There is also a requirement that the audit partner
responsible for the audit not perform in that role for more
than fi ve years.
Principle 5:
Making timely and balanced disclosure
The Company has a Disclosure Policy which outlines the
disclosure obligations of the Company as required under
the ASX Listing Rules and Corporations Act. The policy is
designed to ensure that procedures are in place so that the
market is properly informed of matters which may have a
material impact on the price at which Company securities
are traded.
The Board has designated the Company Secretary
as the person responsible for overseeing and co-
ordinating disclosure of information to the ASX as well
as communicating with the ASX. In accordance with ASX
Listing Rules the Company immediately notifi es the ASX of
information concerning the Company:
(a) that a reasonable person would or may expect to
have a material eff ect on the price or value of the
Company's securities; and
(b) that would, or would be likely to, infl uence persons
who commonly invest in securities in deciding
whether to acquire or dispose of the Company's
securities.
Principle 6:
Respect the rights of shareholders
The Company is committed to providing current and
relevant information to its shareholders.
The Company respects the rights of its shareholders,
and to facilitate the eff ective exercise of the rights, the
Company is committed to:
(a) communicating eff ectively with shareholders
through ongoing releases to the market via ASX
information and general meetings of the Company;
(b) giving shareholders ready access to balanced and
understandable information about the Company
and corporate proposals;
(c) making it easy for shareholders to participate in
general meetings of the Company; and
Any shareholder wishing to make inquiries of the Company
is advised to contact the registered offi ce. All public
announcements made by the Company can be obtained
from the ASX's website www.asx.com.au
Shareholders may elect to, and are encouraged to, receive
communications from the Company and its securities
registry electronically.
The Company maintains information in relation to its
corporate governance documents, Directors and senior
executives, Board and committee charters, annual reports
and ASX announcements on the Company’s website.
Principle 7:
Recognise and managing risk
The Board is committed to the identifi cation, assessment
and management of risk throughout the Company’s
business activities.
The Board has established a policy for risk oversight and
management within the Company. This is periodically
reviewed and updated. Management reports risks
identifi ed to the Board through the monthly Operations
Report, and via direct and timely communication to the
Board where and when applicable. During the reporting
period, management has reported to the Board as to
the eff ectiveness of the Company’s management of its
material business risks. The Company does not have an
internal audit function.
The Company faces risks inherent to its business, including
economic risks, which may materially impact the
Company’s ability to create or preserve value for security
holders over the short, medium or long term. The
Company has in place policies and procedures, including
a risk management framework (as described in the
Company’s Risk Management Policy), which is developed
and updated to help manage these risks. The Board does
not consider that the Company currently has any material
exposure to environmental or social sustainability risks.
The Company does not have separate risk committee.
ANNUAL REPORT 2016 (cid:122) 27
In accordance with the Company’s share trading policy,
participants in any equity based incentive scheme are
prohibited from entering into any transaction that would
have the eff ect of hedging or otherwise transferring
the risk of any fl uctuation in the value of any unvested
entitlement in the Company’s securities to any other
person.
Further details in relation to the company’s remuneration
policies are contained in the Remuneration Report, within
the Directors’ report.
Corporate Governance continued
Principle 7:
Recognise and managing risk continued
The Board as whole is responsible is responsible for
overseeing the establishment and implementation of the
risk management system. Due to the size of the Board and
the Company, it is perceived that no real effi ciencies would
be gained from the existence of separate risk committee.
The Board review’s the entity’s risk management
framework at least annually to satisfy itself that it
continues to be sound. A review of the Company’s risk
management framework was conducted during the 2016
fi nancial year.
Principle 8:
Remunerate fairly and responsibly
It is the Company's objective to maintain a high quality
Board and executive team by remunerating Directors at
relevant market conditions. To assist in achieving this
objective the Remuneration Committee remunerates
Directors and executives having regard to their
performance and the performance of the Company.
The expected outcomes of the remuneration policies and
practices are to enable the Company to motivate, retain
and attract Directors and executives who will create value
for shareholders.
Details relating to the policy for performance evaluation
and the amount of remuneration (monetary and non-
monetary) paid to each Director and to each of the fi ve
highest-paid (non-director) executives during the year, are
set out in the Directors' Report under the section headed
'Remuneration Report'.
The members of the Remuneration Committee at the
date of this report were all independent Non-Executive
Directors, being Mr Robert W Moses, Dr Chris Belyea
and Dr Graham Mitchell. Details relating to performance
evaluation are set out in the Directors' Report under the
section headed 'Remuneration Report'. For details on the
number of meetings of the Remuneration Committee
held during the year and the attendees at those meetings,
refer to the Directors' Report under the section headed
'Meetings of Directors'.
28 (cid:122) ANTISENSE THERAPEUTICS
Annual Financial Statements
For the year ended 30 June 2016
Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Company Information
30
31
32
33
34
56
57
59
61
ANNUAL REPORT 2016 (cid:122) 29
Statement of Comprehensive Income
For the year ended 30 June 2016
Revenue
Other income
Depreciation expenses
Administrative expenses
Occupancy expenses
Patent expenses
Research and development expenses
Foreign exchange gains/(losses)
Profi t/(loss) before tax
Income tax benefi t/(expense)
(Loss)/profi t for the year
Other comprehensive income/(loss) for the year, net of tax
Total comprehensive (loss)/income for the year, net of tax
Earnings per share
Basic earnings/(loss) per share (cents)
Diluted earnings/(loss) per share (cents)
The accompanying notes form part of these fi nancial statements.
Notes
3
3
4
4
4
4
4
4
5
8
2016
$
2015
$
1,132,102
3,916,337
395,597
705,335
1,527,699
4,621,672
(5,882)
(8,172)
(1,792,216)
(1,884,169)
(115,299)
(115,397)
(311,501)
(205,353)
(1,847,505)
(1,675,820)
30,261
(2,514,443)
(25,843)
706,918
-
-
(2,514,443)
706,918
-
-
(2,514,443)
706,918
($1.43)
($1.43)
$0.45
$0.45
30 (cid:122) ANTISENSE THERAPEUTICS
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Non-Current Assets
Plant and equipment
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Employee benefi t liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
Statement of Financial Position
For the year ended 30 June 2016
Notes
2016
$
2015
$
9
10
11
12
13
14
15
4,800,718
6,829,605
420,297
102,941
758,088
93,529
5,323,956
7,681,222
3,403
3,403
5,424
5,424
5,327,359
7,686,646
458,154
292,050
750,204
305,489
289,559
595,048
4,577,155
7,091,598
56,714,725
56,714,725
960,855
960,855
(53,098,425)
(50,583,982)
4,577,155
7,091,598
The accompanying notes form part of these fi nancial statements.
ANNUAL REPORT 2016 (cid:122) 31
Statement of Changes in Equity
For the year ended 30 June 2016
As at 1 July 2014
Profi t for the period
Total comprehensive income
Issue of share capital (Note 14)
Transaction costs on share issues
Contributed
Equity
(Note 14)
Reserves
(Note 15)
Accumulated
Losses
Total
$
$
$
$
52,416,936
960,855 (51,290,900)
2,086,891
-
-
4,516,700
(218,911)
-
-
-
-
706,918
706,918
-
-
706,918
706,918
4,516,700
(218,911)
As at 30 June 2015
56,714,725
960,855 (50,583,982)
7,091,598
As at 1 July 2015
Loss for the period
Total comprehensive income
56,714,725
960,855 (50,583,982)
7,091,598
-
-
-
-
(2,514,443)
(2,514,443)
(2,514,443)
(2,514,443)
At 30 June 2016
56,714,725
960,855 (53,098,425)
4,577,155
The accompanying notes form part of these fi nancial statements.
32 (cid:122) ANTISENSE THERAPEUTICS
OPERATING ACTIVITIES
Licensing fees received
Payments to suppliers and employees
Interest received
R&D tax concession refund
Statement of Cash Flows
For the year ended 30 June 2016
Notes
2016
$
2015
$
1,000,000
3,863,988
(3,596,565)
(3,775,898)
134,842
436,697
41,046
1,139,739
Net cash fl ows (used in)/from operating activities
18
(2,025,026)
1,268,875
INVESTING ACTIVITIES
Payment for purchases of plant and equipment
11
Net cash fl ows used in investing activities
(3,861)
(3,861)
-
-
FINANCING ACTIVITIES
Proceeds from issues of securities
Capital raising costs
Net cash fl ows from fi nancing activities
-
-
-
4,445,128
(218,911)
4,226,217
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 July
Cash and cash equivalents at 30 June
(2,028,887)
5,495,092
6,829,605
1,334,513
4,800,718
6,829,605
9
9
The accompanying notes form part of these fi nancial statements.
ANNUAL REPORT 2016 (cid:122) 33
Notes to the Financial Statements
For the year ended 30 June 2016
Judgements made by management in the application
of Australian Accounting Standards that have signifi cant
eff ects on the fi nancial statements and estimates with a
signifi cant risk of material adjustments in the next year are
disclosed, where applicable, in the relevant notes to the
fi nancial statements.
Accounting policies are selected and applied in a manner
which ensures that the resulting fi nancial information
satisfi es the concepts of relevance and reliability, thereby
ensuring that the substance of the underlying transactions
or other events is reported.
1.c Statement of Compliance
The fi nancial report complies with Australian Accounting
Standards as issued by the Australian Accounting
Standards Board and International Financial Reporting
Standards ("IFRS") as issued by the International
Accounting Standards Board.
Note 1:
Signifi cant Accounting Policies
1.a Corporate Information
The fi nancial report of Antisense Therapeutics Limited
and its subsidiaries (the ‘Company’) for the Year Ended
30 June 2016 was authorised for issue in accordance
with a resolution of the Directors on 25 August 2016. The
fi nancial report is for the Company consisting of Antisense
Therapeutics Limited and its subsidiaries.
Antisense Therapeutics Limited is a listed public company
limited by shares incorporated and domiciled in Australia
whose shares are publicly traded on the Australian
Securities Exchange. The Company also has a Level 1 ADR
program traded on the US over-the-counter market.
The principal activity of the Company is the research and
development of novel antisense pharmaceuticals.
1.b Basis of Preparation
The fi nancial report is a general purpose fi nancial
report, which has been prepared in accordance with the
requirements of the Corporations Act 2001 and Australian
Accounting Standards, required for a for-profi t entity.
The fi nancial report has been prepared on an accruals
basis and is based on historical costs. The fi nancial
report is presented in Australian dollar ($), which is the
Company’s functional and presentation currency. All values
are rounded to the nearest dollar unless otherwise stated.
Management is required to make judgements, estimates
and assumptions about carrying values of assets and
liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on
historical experience and various other factors that are
believed to be reasonable under the circumstance, the
results of which form the basis of making the judgements.
Actual results may diff er from these estimates. The
estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
if the revision aff ects only that period, or in the period of
the revision and future periods if the revision aff ects both
current and future periods.
34 (cid:122) ANTISENSE THERAPEUTICS
1.d New, Revised or Amending Accounting Standards and Interpretations Adopted
There has been no requirement to adopt any new, revised or amended Accounting Standards for the year ended 30
June 2016.
The following Australian Accounting Standards and Interpretations have recently been issued or amended but are not yet
eff ective and therefore have not been adopted by the Company for the annual reporting period ended 30 June 2016:
Reference
Title
Summary
Application
Impact on
fi nancial
report
Application
date
1 January
minimal
1 July 2018
AASB 9
Financial
Instruments
AASB 9 introduces new requirements for the
classifi cation and measurement of fi nancial
assets and liabilities and includes a forward-
looking ‘expected loss’ impairment model and
a substantially-changed approach to hedge
accounting. These requirements improve and
simplify the approach for classifi cation and
measurement of fi nancial assets compared
with the requirements of AASB 139. The main
changes are:
a Financial assets that are debt instruments
will be classifi ed based on:
(i) the objective of the entity’s business
model for managing the fi nancial assets;
and
(ii) the characteristics of the contractual
cash fl ows.
b Allows an irrevocable election on initial
recognition to present gains and losses on
investments in equity instruments that are
not held for trading in other comprehensive
income (instead of in profi t or loss).
Dividends in respect of these investments
that are a return on investment can be
recognised in profi t or loss and there is no
impairment or recycling on disposal of the
instrument.
c
Introduces a ‘fair value through other
comprehensive income’ measurement
category for particular simple debt
instruments.
d Financial assets can be designated and
measured at fair value through profi t or loss
at initial recognition if doing so eliminates
or signifi cantly reduces a measurement
or recognition inconsistency that would
arise from measuring assets or liabilities, or
recognising the gains and losses on them,
on diff erent bases.
ANNUAL REPORT 2016 (cid:122) 35
Notes to the Financial Statements continued
For the year ended 30 June 2016
Note 1:
Signifi cant Accounting Policies continued
1.d New, Revised or Amending Accounting Standards and Interpretations Adopted continued
Reference
Title
Summary
Application
Impact on
fi nancial
report
Application
date
AASB 9
cont'd
Financial
Instruments
AASB 15
Revenue
from
Contracts
with
Customers
e Where the fair value option is used for
1 January
minimal
1 July 2018
fi nancial liabilities the change in fair value is
to be accounted for as follows:
• the change attributable to changes in credit
risk are presented in Other Comprehensive
Income (OCI)
• the remaining change is presented in profi t
or loss If this approach creates or enlarges
an accounting mismatch in the profi t or
loss, the eff ect of the changes in credit
risk are also presented in profi t or loss.
Otherwise, the following requirements have
generally been carried forward unchanged
from AASB 139 into AASB 9:
• classifi cation and measurement of fi nancial
liabilities; and
• derecognition requirements for fi nancial
assets and liabilities AASB 9 requirements
regarding hedge accounting represent a
substantial overhaul of hedge accounting
that enable entities to better refl ect
their risk management activities in the
fi nancial statements. Furthermore, AASB
9 introduces a new impairment model
based on expected credit losses. This
model makes use of more forward-looking
information and applies to all fi nancial
instruments that are subject to impairment
accounting.
AASB 15 − replaces AASB 118 Revenue,
AASB 111 Construction Contracts and some
revenue-related Interpretations− establishes
a new revenue recognition model − changes
the basis for deciding whether revenue is to
be recognised over time or at a point in time
− provides new and more detailed guidance
on specifi c topics (e.g. multiple element
arrangements, variable pricing, rights of return,
warranties and licensing) − expands and
improves disclosures about revenue
1 January
minimal
1 July 2018
36 (cid:122) ANTISENSE THERAPEUTICS
Reference
Title
Summary
Application
Impact on
fi nancial
report
Application
date
AASB 16 − replaces AASB 117 Leases and
some lease-related Interpretations− requires
all leases to be accounted for ‘on-balance
sheet’ by lessees, other than short-term and
low value asset leases− provides new guidance
on the application of the defi nition of lease
and on sale and lease back accounting−
largely retains the existing lessor accounting
requirements in AASB 117− requires new and
diff erent disclosures about leases.
The amendments to AASB 116 prohibit the
use of a revenue-based depreciation method
for property, plant and equipment. Additionally,
the amendments provide guidance in the
application of the diminishing balance
method for property, plant and equipment.
The amendments to AASB 138 present a
rebuttable presumption that a revenue-based
amortisation method for intangible assets is
inappropriate. This rebuttable presumption
can be overcome (i.e. a revenue-based
amortisation method might be appropriate)
only in two (2) limited circumstances:
The amendments introduce the equity
method of accounting as one of the options
to account for an entity’s investments in
subsidiaries, joint ventures and associates in
the entity’s separate fi nancial statements.
1 January
minimal
1 July 2018
1 January
minimal
1 July 2019
1 January
minimal
1 July 2016
The Standard makes amendments to AASB
101 Presentation of Financial Statements
arising from the IASB’s Disclosure Initiative
project. The amendments:
1 January
2016
minimal
1 July 2016
AASB 2016-1 amends AASB 112 Income Taxes
to clarify how to account for deferred tax
assets related to debt instruments measured
at fair value, particularly where changes in the
market interest rate decrease the fair value of
a debt instrument below cost.
1 January
2017
minimal
1 July 2017
AASB 16
Leases
AASB
2014-4
Amendments
to
AASB
2014-9
AASB
2015-2
AASB
2016-1
Amendments
to Australian
Accounting
Standards –
Equity
Method in
Separate
Financial
Statements
Amendments
to Australian
Accounting
Standards –
Disclosure
Initiative:
Amendments
to AASB 101
Amendments
to Australian
Accounting
Standards –
Recognition
of Deferred
Tax Assets
for
Unrealised
Losses
ANNUAL REPORT 2016 (cid:122) 37
Notes to the Financial Statements continued
For the year ended 30 June 2016
Note 1:
Signifi cant Accounting Policies continued
1.d New, Revised or Amending Accounting Standards and Interpretations Adopted continued
Reference
Title
Summary
Application
AASB
2016-2
Amendments
to Australian
Accounting
Standards –
Disclosure
Initiative:
Amendments
to AASB 107
AASB 2016-2 amends AASB 107 Statement
of Cash Flows to require entities preparing
fi nancial statements in accordance with Tier 1
reporting requirements to provide disclosures
that enable users of fi nancial statements to
evaluate changes in liabilities arising from
fi nancing activities, including both changes
arising from cash fl ows and non-cash changes.
1 January
2017
Impact on
fi nancial
report
Application
date
minimal
1 July 2017
1.e Principles of Consolidation
The consolidated fi nancial statements incorporate the assets and liabilities of all subsidiaries of Antisense Therapeutics
Ltd as at 30 June 2016 and the results of all subsidiaries for the year then ended.
Subsidiaries are all those entities where the Company is exposed, or has rights, to variable returns from the Company’s
involvement with the entity and has the ability to aff ect those returns through the Company’s power to direct the
activities of the entity. The existence and eff ect of potential voting rights that are currently exercisable or convertible are
considered when assessing whether the Company controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are de-
consolidated from the date that control ceases.
In preparing the consolidated fi nancial statements, all intercompany balances and transactions, and unrealised profi ts/
losses arising within the consolidated entity are eliminated in full. Investments in subsidiaries are accounted for at cost in
the individual fi nancial statements of Antisense Therapeutics Limited.
1.f Summary of Signifi cant Accounting Policies
(a) Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefi ts will fl ow to the Company and the
revenue can be reliably measured. The following specifi c recognition criteria must also be met before revenue is
recognised.
Interest - control of the right to receive the interest payment.
Licensing revenue - right to receive the licensing revenue has been confi rmed, and no signifi cant obligations remain.
(b) Government Grants
Government grants are recognised when there is reasonable assurance that the grant will be received and all grant
conditions will be complied with.
When the grant relates to an expense item, it is recognised as income over the periods necessary to match the grant
on a systematic basis to the costs that it is expected to compensate.
(c) Borrowing Costs
Borrowing costs are expensed as incurred.
38 (cid:122) ANTISENSE THERAPEUTICS
(d) Leases
The minimum lease payments of operating leases,
where the lessor eff ectively retains substantially all of
the risks and benefi ts of ownership of the leased item,
are recognised as an expense on a straight-line basis.
(e) Cash and Cash Equivalents
Cash and short-term deposits in the Statement of
Financial Position comprise cash at bank and in hand
and short-term deposits with an original maturity of
three months or less.
For the purposes of the Cash Flow Statement,
cash and cash equivalents consist of cash and cash
equivalents as defi ned above.
(f) Trade and Other Receivables
Trade and other receivables are recognised initially at
fair value and subsequently measured at amortised
cost using the eff ective interest method, less an
allowance for impairment, once they become over due
by more than 60 days. A separate account records the
impairment.
An allowance for a doubtful debt is made when there
is objective evidence that the Company will not be able
to collect the debts. The criteria used to determine
that there is objective evidence that an impairment
loss has occurred include whether the Financial Asset
is past due and whether there is any other information
regarding increased credit risk associated with the
Financial Asset. Bad debts which are known to be
uncollectible are written off when identifi ed.
(g) Foreign Currencies
The functional currency of the Company is based
on the primary economic environment in which the
Company operates. The functional currency of the
Company is Australian dollars.
Transactions in foreign currencies are converted to
local currency at the rate of exchange at the date of
the transaction.
Amounts payable to and by the Company outstanding
at reporting date and denominated in foreign
currencies have been converted to local currency using
rates prevailing at the end of the fi nancial year.
All exchange diff erences are taken to profi t or loss.
(h) Income Taxes
Deferred income tax is provided on all temporary
diff erences at the balance date between the tax bases
of assets and liabilities and their carrying amounts for
fi nancial reporting purposes.
Deferred income tax liabilities are recognised for
all taxable temporary diff erences except where the
deferred income tax liability arises from the initial
recognition of an asset or liability in a transaction that
is not a business combination and, at the time of the
transaction, aff ects neither the accounting loss nor
taxable profi t or loss.
Deferred income tax assets are recognised for all
deductible temporary diff erences, carry-forward of
unused tax assets and unused tax losses, to the extent
that it is probable that taxable profi t will be available
against which the deductible temporary diff erences,
and the carry-forward of unused tax assets and unused
tax losses can be utilised except where the deferred
income tax asset relating to the deductible temporary
diff erences arises from the initial recognition of an
asset or liability in a transaction that is not a business
combination and, at the time of transaction, aff ects
neither the accounting loss nor taxable profi t or loss.
The carrying amount of deferred income tax assets
is reviewed at each balance date and reduced to the
extent that it is no longer probable that suffi cient
taxable profi t will be available to allow all or part of the
deferred income tax asset to be utilised.
Deferred income tax assets and liabilities are measured
at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled,
based on tax rates (and tax laws) that have been
enacted or substantively enacted at balance date.
Deferred Tax assets are recognised for unused tax
losses to the extent that it is probable that taxable
profi t will be available against which the losses can be
utilised. Signifi cant management judgement is required
to determine the amount of deferred tax assets that
can be recognised, based upon the likely timing and
the level of future taxable profi ts together with future
tax planning strategies.
Antisense Therapeutics Limited have not assessed
unused tax losses carried forward at 30 June 2016,
given the history of losses from prior periods. These
losses do not expire and may be used to off set taxable
income in the current year and in future periods. Given
the history of losses, there is limited support for the
recognition of these losses as deferred tax assets.
On this basis, Antisense Therapeutics Limited has
determined it cannot recognise deferred tax assets on
the tax losses carried forward. Further, on this basis,
deferred tax assets have not been recognised related
to temporary diff erences.
Income taxes relating to items recognised directly in
equity are recognised in equity and not in profi t or loss.
ANNUAL REPORT 2016 (cid:122) 39
Notes to the Financial Statements continued
For the year ended 30 June 2016
Note 1:
Signifi cant Accounting Policies continued
1.f Summary of Signifi cant Accounting Policies continued
(i) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of
the amount of GST, except:
• where the GST incurred on a purchase of goods
and services is not recoverable from the taxation
authority, in which case the GST is recognised as
part of the cost of acquisition of the asset or as
part of the expense item as applicable; and
• receivables and payables are stated with the
amount of GST included.
Cash fl ows arising from operating activities are
included in the Cash Flow Statement on a gross basis
(i.e. including GST) and the GST component of cash
fl ows arising from investing and fi nancing activities,
which is recoverable from, or payable to, the taxation
authority are classifi ed as operating cash fl ows.
Commitments and contingencies are disclosed net
of the amount of GST recoverable from, or payable
to, the taxation authority. The net amount of GST
recoverable from or payable to, the taxation authority
is included as part of the receivables or payables in the
Statement of Financial Position.
(j) Plant and Equipment
Plant and equipment are measured at cost less
any accumulated depreciation and any impairment
losses. Such assets are depreciated over their useful
economic lives as follows:
Plant and equipment
3-5 years Straight line
Life
Method
(k) Intangible Assets
year end. Changes in the expected useful life or the
expected pattern of consumption of future economic
benefi ts embodied in the asset are accounted for
by changing the amortisation period or method,
as appropriate, which is a change in an accounting
estimate. The amortisation expense on intangible
assets with fi nite lives is recognised in profi t or loss in
the expense category consistent with the function of
the intangible asset.
(l) Research and Development Costs
Research costs are expensed as incurred.
An intangible asset arising from development
expenditure on an internal project is recognised only
when the Company can demonstrate the technical
feasibility of completing the intangible asset so that
it will be available for use or sale, its intention to
complete and its ability to use or sell the asset, how
the asset will generate future economic benefi ts, the
availability of resources to complete the development
and the ability to measure reliably the expenditure
attributable to the intangible asset during its
development.
Following initial recognition of the development
expenditure, the cost model is applied requiring the
asset to be carried at cost less any accumulated
amortisation and accumulated impairment losses. Any
expenditure so capitalised is amortised over the period
of expected benefi ts from the related project.
The carrying value of an intangible asset arising from
development expenditure is tested for impairment
annually when the asset is not available for use, or
more frequently when an indication of impairment
arises during the reporting period.
Intangible assets are initially measured at cost.
Following initial recognition, intangible assets are
carried at cost less any accumulated amortisation and
any accumulated impairment losses. The useful lives
of intangible assets are assessed to be either fi nite or
infi nite. Intangible assets with fi nite lives are amortised
over the useful life and assessed for impairment
whenever there is an indication that the intangible
asset may be impaired. The amortisation period and
the amortisation method for an intangible asset with
a fi nite useful life is reviewed at least at each fi nancial
(m) Impairment of Non-Financial Assets
The carrying values of non-fi nancial assets are tested
for impairment whenever events or changes in
circumstances indicate that the carrying amount may
not be recoverable.
An impairment loss is recognised for the amount
by which the asset's carrying amount exceeds its
recoverable amount. Recoverable amount is the higher
of an asset's fair value less costs of disposal and value
40 (cid:122) ANTISENSE THERAPEUTICS
(q) Earnings Per Share
Basic earnings per share is calculated as net gain
attributable to members, adjusted to exclude costs of
servicing equity (other than dividends), divided by the
weighted average number of ordinary shares, adjusted
for any bonus element.
Diluted earnings per share is calculated as net gain
attributable to members, adjusted for:
• costs of servicing equity (other than dividends);
• the after tax eff ect of dividends and interest
associated with dilutive potential ordinary shares
that have been recognised as expenses;
• other non-discretionary changes in revenues or
expenses during the period that would result from
the dilution of potential ordinary shares; divided by
the weighted average number of ordinary shares
and dilutive potential ordinary shares, adjusted for
any bonus element.
(r) Parent Information
The fi nancial information for the parent entity,
Antisense Therapeutics Limited, disclosed in Note
2 has been prepared on the same basis as the
consolidated statements with the exception of
investments in subsidiaries which are carried at costs
less any impairment.
in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there
are separately identifi able cash infl ows that are largely
independent of the cash infl ows from other assets
or groups of assets (cash-generating units). Non-
fi nancial assets that suff er an impairment are tested
for possible reversal of the impairment whenever
events or changes in circumstances indicate that the
impairment may have reversed.
An impairment exists when the carrying value of an
asset exceeds its estimated recoverable amount. The
asset is then written down to its recoverable amount.
(n) Trade and other payables
Trade and other payables are carried at amortised
cost and represent liabilities for goods and services
provided to the Company prior to the end of the
fi nancial year that are unpaid and arise when the
Company becomes obliged to make future payments
in respect of the purchase of these goods and services.
Licensing fees are recognised as an expense when it is
confi rmed that they are payable by the Company.
(o) Employee Benefi ts
Wages, salaries and annual leave
Liabilities for wages and salaries, including non-
monetary benefi ts and annual leave payments
expected to be settled within 12 months of the
reporting date are recognised in other provisions in
respect of employees' service up to the reporting date.
They are measured at the amounts expected to be
paid when the liabilities are settled.
Long Service Leave
The liability for long service leave is recognised for
employee benefi ts and measured as the present value
of expected future payments to be made in respect
of services provided by employees up to the reporting
date. Consideration is given to expected future wage
and salary levels, experience of employee departures,
and periods of service. Expected future payments are
discounted using market yields at the reporting date
on national corporate bonds with terms to maturity
and currencies that match, as closely as possible, to
the estimated future cash outfl ows.
(p) Contributed Equity
Ordinary shares are classifi ed as equity. Any
transaction costs arising on the issue of ordinary
shares are recognised directly in equity as a reduction
(net of tax) of the share proceeds received.
ANNUAL REPORT 2016 (cid:122) 41
Notes to the Financial Statements continued
For the year ended 30 June 2016
Note 2:
Information Relating to the Antisense Therapeutics Limited (the Parent)
ASSETS
Current assets
Non-current assets
Total assets
LIABILITIES
Current liabilities
Total liabilities
EQUITY
Contributed equity
Reserves
Retained earnings
Total equity
Net profi t/(loss) for the year
Total comprehensive income of the Parent entity
Note 3: Revenue and Other Income
REVENUE
Licensing revenue
Interest from external parties
Total revenue
OTHER INCOME
Research and development tax concession
Total other income
Total revenue & other income
2016
$
2015
$
5,323,956
7,681,222
3,403
5,424
5,327,359
7,686,646
750,204
750,204
595,048
595,048
56,714,725
56,714,725
960,855
960,855
(53,098,425)
(50,583,982)
4,577,155
7,091,598
(2,514,443)
706,918
-
-
2016
$
2015
$
1,000,000
3,863,988
132,102
52,349
1,132,102
3,916,337
395,597
395,597
705,335
705,335
1,527,699
4,621,672
The licence fee received is from Strongbridge Biopharma (formerly Cortendo Caymen Limited). In the current year fi nal
payment of $1m has been received. This relates to a payment made to terminate the licensing partnership for ATL1103.
Government grants related to research and development tax incentives.
42 (cid:122) ANTISENSE THERAPEUTICS
Note 4: Expenses
Administration Expenses
Compliance expenses
Offi ce expenses
Corporate employee expenses
Business development expenses
Total Administration Expenses
Occupancy Expenses
Rent
Other expenses
Suspense
Total Occupancy expenses
Research and development Expenses
ATL 1102
ATL 1103
R&D Staff Costs
Total Research and Development Expenses
Patent expenses
Depreciation expenses
Foreign exchange gains/(losses)
Total Expenses
Note 5: Income Tax
Accounting (loss)/profi t before income tax
At Australia's statutory income tax rate of 30% (2015: 30%)
Research and development tax concession
Non-assessable grant income
Section 40-880 deductions
Entertainment
2016
$
248,442
43,979
729,768
770,027
2015
$
220,171
61,875
673,807
928,316
1,792,216
1,884,169
98,777
16,522
-
98,777
16,616
4
115,299
115,397
1,806,896
11,508
29,101
267,051
1,251,433
157,336
1,847,505
1,675,820
311,501
5,882
(30,261)
205,353
8,172
25,843
4,042,142
3,914,754
2016
$
(2,514,443)
(754,333)
794,522
(118,679)
(50,391)
960
2015
$
706,918
212,075
485,831
(211,601)
(73,824)
587
Tax (benefi t)/ losses not previously recognised
(127,921)
413,068
Income tax expense reported in the statement of profi t or loss
Income tax attributable to a discontinued operation
Income tax expense/(benefi t) attributable to the Company
Deferred Tax
Foreign exchange
Accruals
Provision for annual leave & long service leave
Other
Net deferred tax asset/ (liability) not recognised
Net deferred tax asset/ (liability)
-
-
-
-
-
(33,986)
747
(2,263)
(35,502)
-
-
-
-
-
772
883
6,093
10,566
18,314
-
ANNUAL REPORT 2016 (cid:122) 43
Notes to the Financial Statements continued
For the year ended 30 June 2016
Note 5: Income Tax (continued)
Tax Losses
Antisense Therapeutics Limited has unconfi rmed, unrecouped tax losses in Australia which have not been brought to
account. The ability to be able to recognise a deferred tax asset in respect of these tax losses will be dependent upon
the probability that future taxable profi t will be available against which the unused tax losses can be utilised and the
conditions for deductibility imposed by Australian tax authorities will be complied with.
Note 6: Key Management Personnel Compensation
The aggregate compensation made to Directors and other Key Management Personnel of the Company is set out below:
Short-term employee benefi ts
Post-employment benefi ts
Long-term benefi ts
2016
$
2015
$
888,695
815,478
59,227
11,157
60,747
11,446
959,079
887,671
For more information on Key Management Personnel Compensation, please refer to the Remuneration Report contained
under Directors’ Report.
Note 7: Auditors’ Remuneration
The auditor of Antisense Therapeutics Limited is Ernst and Young.
Amounts received or due and receivable by Ernst and Young for:
An audit or review of the financial report of the entity
50,985
49,244
2016
$
2015
$
Other services in relation to the entity:
Tax compliance services
19,250
70,235
17,000
66,244
44 (cid:122) ANTISENSE THERAPEUTICS
Note 8: Earnings per share (EPS)
Basic EPS is calculated by dividing profi t for the year attributable to ordinary equity holders of the Parent by the
weighted average number of ordinary shares outstanding during the year.
Diluted EPS is calculated by dividing the net profi t attributable to ordinary equity holders of the Parent (after adjusting
for interest on the convertible preference shares) by the weighted average number of ordinary shares outstanding during
the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive
potential ordinary shares into ordinary shares.
The following table refl ects the income and share data used in the basic and diluted EPS computations:
Net profit/(earnings/(losses)) used in the calculation of basic and diluted earnings/
(losses) per share
2016
¢
2015
¢
(2,514,443)
706,918
Weighted average number of ordinary shares for basic EPS
175,198,815
157,859,146
Adjustments for calculation of diluted earnings/(losses) per share:
Options over ordinary shares
-
72,000
Weighted average number of ordinary shares adjusted for the eff ect of dilution
175,198,815
157,859,146
There have been no other conversions to, call of, or subscriptions for ordinary shares, or issues of potential ordinary
shares since the reporting date and before the completion of this fi nancial report.
Note 9: Cash and Cash Equivalents
Cash at bank and on hand
Short-term deposits
2016
$
2015
$
300,718
329,605
4,500,000
6,500,000
4,800,718
6,829,605
The interest rate on cash at bank at 30 June 2016 was 0.10%p.a. (2015: 0.10% p.a.). And the interest rates on term
deposits at 30 June 2016 were 2.55% p.a. (2015: 2.15% p.a.) for 30 days and 2.85% p.a. (2015: 2.65%) for 90 days. The
term deposits have maturity periods of 30 days and 90 days.
Note 10: Trade and Other Receivables
Interest receivable
Australian Tax Office receivable
Research and development tax concession receivable
Other receivables
2016
$
9,839
2,617
395,597
12,244
2015
$
12,579
27,216
705,336
12,957
420,297
758,088
ANNUAL REPORT 2016 (cid:122) 45
Notes to the Financial Statements continued
For the year ended 30 June 2016
Note 11: Property, Plant and Equipment
Cost or valuation
At 1 July 2014
At 30 June 2015
At 1 July 2015
Additions
At 30 June 2016
Depreciation and impairment
At 1 July 2014
Depreciation charge for the year
At 30 June 2015
At 1 July 2015
Depreciation charge for the year
At 30 June 2016
Gross value
Accumulated depreciation
Note 12: Trade and Other Payables
Trade payables
Accrued expenses
Other payables
46 (cid:122) ANTISENSE THERAPEUTICS
Property, plant and
equipment
$
172,209
172,209
172,209
3,861
176,070
(158,613)
(8,172)
(166,785)
(166,785)
(5,882)
(172,667)
2016
$
2015
$
176,070
172,209
(172,667)
(166,785)
3,403
5,424
2016
$
214,791
238,786
4,577
2015
$
175,412
125,500
4,577
458,154
305,489
Note 13: Employee Benefi t Liabilities
Current employee provisions
Note 14: Contributed Equity
Ordinary fully paid shares
Options over ordinary shares
Reconciliation of share movement in the period:
2016
$
292,050
292,050
2015
$
289,559
289,559
Note
14(a)
14(b)
2016
$
2015
$
55,505,680
55,505,680
1,209,045
1,209,045
56,714,725
56,714,725
14(a) Ordinary Shares
2016
No.
$
2015
No.
$
At the beginning of the period
176,512,483
55,505,680
144,096,128
51,207,891
Shares issued during the year
Transaction costs relating to share issues
-
-
Cancellation of shares (1)
(15,025,075)
-
-
-
32,416,355
-
-
4,516,700
(218,911)
-
Balance at the end of the year
161,487,408
55,505,680
176,512,483
55,505,680
(1) Subject to shareholder approval, 15,025,075 shares will be cancelled due to the termination of the partnership agreement
with Strongbridge Biopharma (formerly Cortendo Cayman Limited).
Details of movement in shares:
2016
Details
Number
30 June 2016
Shares to be cancelled
(15,025,075)
Issue Price
AUD
$
-
$
$
-
$
910,000
1,090,000
2,516,700
(218,911)
(1,540)
4,297,789
2015
Details
Number
Issue Price
1 October 2014
Placement
12 November 2014
Share purchase plan
15 May 2014
Issue of shares to Cortendo Cayman
Limited
Transaction costs
0.1150
0.1150
0.1675
7,913,043
9,478,237
15,025,075
32,416,355
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the number
of shares held. At shareholder meetings each ordinary share is entitled to one vote when a poll is called, otherwise each
shareholder has one vote on a show of hands. The ordinary shares have no par value.
ANNUAL REPORT 2016 (cid:122) 47
Notes to the Financial Statements continued
For the year ended 30 June 2016
Note 14: Contributed Equity (continued)
Reconciliation of option movement in the period:
14(b) Options
2016
No.
$
2015
No.
$
At the beginning of the period
46,950,984
1,209,045
46,950,984
1,209,045
Options issued during the period
-
-
-
-
46,950,984
1,209,045
46,950,984
1,209,045
There was no activity during the year ended 30 June 2016 or 30 June 2015.
Note 15: Reserves
Nature and Purpose of the Reserve
The option reserve recognises the proceeds from the issue of options over ordinary shares and the expense recognised
in respect of share based payments.
Unlisted options over fully paid shares
2016
No.
72,000
$
960,855
2015
No.
72,000
$
960,855
There was no activity during the year ended 30 June 2016 or 30 June 2015.
Options outstanding as at 30 June 2016:
On issue at beginning of year
Issued during the year
Exercised during the year
Expired during the year
Forfeited during the year
Consolidation 10:1 Nov 2013
Outstanding at balance sheet date
Expired subsequent to balance date
Exercised subsequent to balance date
No. of Options
27 Oct 2008
20 Nov 2013
72,000
46,950,984
-
-
-
-
-
-
-
-
-
-
72,000
46,950,984
-
-
-
-
Outstanding at date of Directors’ Report
72,000
46,950,984
Original number of recipients
Number of current holders
Exercise price
Exercise period from
To (expiration day)
The following proportion of options vest from the dates shown:
100%
4
4
-
849
818
$0.27
27 Oct 2008
20 Nov 2013
30 Jul 2018
31 Jan 2017
27 Oct 2008
20 Nov 2013
48 (cid:122) ANTISENSE THERAPEUTICS
Note 16: Commitments and Contingencies
Operating Lease Commitments
Future minimum rentals payable under non-cancellable operating leases as at 30 June are, as follows:
Within one year
2016
$
24,693
24,693
2015
$
24,693
24,693
The lease expenditure commitments relate to the leasing of offi ce premises. The lease is for a term of one year, expiring
October 2016.
There are no contingencies in the current or preceding year.
Note 17: Operating Segments
30 June 2016
Segment revenue
Segment result
Net result
30 June 2015
Segment revenue
Segment result
Net result
17(a) Unallocated breakdown
Unallocated revenue
Interest from external parties
Unallocated result
R&D tax concession refund
Compliance expenses
Business development expenses
Employee expenses
Patent expenses
Other expenses
ATL1102
Multiple
Sclerosis
ATL1103
Growth and
Sight Disorders
Unallocated
(Note a)
-
1,000,000
132,102
Total
1,132,102
(1,594,423)
(1,594,423)
171,616
1,171,616
(2,223,737)
(3,646,544)
(2,091,635)
(2,514,442)
ATL1102
Multiple
Sclerosis
ATL1103
Growth and
Sight Disorders
Unallocated
(Note a)
Total
-
(99,520)
(99,520)
3,863,988
(718,548)
52,349
3,916,337
(2,391,351)
(3,209,419)
3,145,440
(2,339,002)
706,918
2016
$
132,102
132,102
970,437
(243,442)
(775,027)
(729,768)
(311,501)
(1,134,436)
2015
$
52,349
52,349
4,919
(220,171)
(928,316)
(673,807)
(205,353)
(368,623)
(2,223,737)
(2,391,351)
ANNUAL REPORT 2016 (cid:122) 49
Notes to the Financial Statements continued
For the year ended 30 June 2016
Note 18: Cash Flow Information
Cash flow reconciliation
Reconciliation of net profit after tax to net cash flows from operations:
Net (loss)/ profit before tax
(2,514,443)
706,918
Adjustments to reconcile profit before tax to net cash flows:
2016
$
2015
$
Depreciation expense
Share-based payments
Working capital adjustments:
Movement in trade and other receivables
Movement in prepayments
Movement in trade and other payables
Movement in other current liabilities
Movement in provisions
5,882
-
324,185
(9,412)
166,272
8,172
71,572
423,379
46,524
42,000
-
(50,000)
2,490
20,310
Reconciliation of cash fl ow from operations with loss after income tax
Net cash fl ows (used in)/from operating activities
(2,025,026)
1,268,875
Note 19: Events After the Reporting Period
There have not been any matters or circumstances, other than that referred to in the fi nancial statements or notes
thereto, that have arisen since the end of the fi nancial year, which signifi cantly aff ected, or may signifi cantly aff ect,
the operations of Antisense Therapeutics Limited, the results of those operations or the state of aff airs of Antisense
Therapeutics Limited in future fi nancial years.
Note 20: Related Party Transactions
Transactions between related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated. Transactions with related parties are as follows:
Purchases from Belyea IP
Belyea IP is a patent attorney business operated by Dr Chris Belyea.
Service fees paid to Belyea IP during the year:
Patent renewals cost reimbursed to Belyea IP during the year:
Total paid by the Company to Belyea IP during the year:
At the end of the fi nancial year, the Company owed Belyea IP:
2016
$
2015
$
4,900
70,440
75,340
-
5,200
36,422
41,622
-
50 (cid:122) ANTISENSE THERAPEUTICS
Note 21: Financial Risk Management Objectives and Policies
(a) Financial Instruments
The Company's fi nancial instruments consist of cash and cash equivalents, trade and other receivables and trade and
other payables:
Cash and cash equivalents
Trade and other receivables
Trade and other payables
2016
$
2015
$
4,800,718
6,829,605
420,297
758,088
(458,154)
(305,489)
The Company does not have any derivative instruments at 30 June 2016 (2015: Nil).
(b) Risk Management Policy
The Board is responsible for overseeing the establishment and implementation of the risk management system, and
reviews and assesses the eff ectiveness of the Company's implementation of that system on a regular basis.
The Board and Senior Management identify the general areas of risk and their impact on the activities of the Company,
with Management performing a regular review of:
• the major risks that occur within the business;
• the degree of risk involved;
• the current approach to managing the risk; and
•
if appropriate, determine:
(i) any inadequacies of the current approach; and
(ii) possible new approaches that more effi ciently and eff ectively address the risk.
Management report risks identifi ed to the Board through the monthly Operations Report.
The Company seeks to ensure that its exposure to undue risk which is likely to impact its fi nancial performance,
continued growth and survival is minimised in a cost eff ective manner.
(c) Signifi cant Accounting Policy
Details of signifi cant accounting policies and methods adopted, including the criteria for recognition, the basis for
measurement and the basis on which income and expenses are recognised, in respect of each class of fi nancial asset,
fi nancial liability and equity instrument are disclosed in Note 1 to the fi nancial statements.
The carrying amounts of cash and cash equivalents, trade and other receivables and trade and other payables represents
their fair values determined in accordance with the accounting policies disclosed in Note 1.
Interest revenue on cash and cash equivalents and foreign exchange movements on trade and other receivables and
trade and other payables are disclosed in Notes 3 and 4.
ANNUAL REPORT 2016 (cid:122) 51
Notes to the Financial Statements continued
For the year ended 30 June 2016
Note 21: Financial Risk Management Objectives and Policies (continued)
(d) Capital Risk Management
The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern
and to maintain an optimal capital structure so as to maximise shareholder value. In order to maintain or achieve an
optimal capital structure, the Company may issue new shares or reduce its capital, subject to the provisions of the
Company's constitution.
The capital structure of the Company consists of equity attributed to equity holders of the Company, comprising
contributed equity, reserves and accumulated losses disclosed in Notes 14 and 15. By monitoring undiscounted cash fl ow
forecasts and actual cash fl ows provided to the Board by the Company's Management the Board monitors the need to
raise additional equity from the equity markets.
(e) Financial Risk Management
The main risks the Company is exposed to through its operations are interest rate risk, foreign exchange risk, credit risk
and liquidity risk.
INTEREST RATE RISK
The Company is exposed to interest rate risks via the cash and cash equivalents that it holds. Interest rate risk is the risk that
a fi nancial instruments value will fl uctuate as a result of changes in market interest rates. The objective of managing interest
rate risk is to minimise the Company's exposure to fl uctuations in interest rate that might impact its interest revenue and
cash fl ow.
To manage interest rate risk, the Company locks a portion of the Company's cash and cash equivalents into term deposits.
The maturity of term deposits is determined based on the Company's cash fl ow forecast.
Interest rate risk is considered when placing funds on term deposits. The Company considers the reduced interest rate
received by retaining cash and cash equivalents in the Company's operating account compared to placing funds into a term
deposit. This consideration also takes into account the costs associated with breaking a term deposit should early access to
cash and cash equivalents be required.
The Company's exposure to interest rate risk and the weighted average interest rates on the Company's fi nancial assets and
fi nancial liabilities is as follows:
30 June 2016
Financial Assets
Weighted
Average
Eff ective
Interest
Rate
Floating
Interest
Rate
Fixed
Interest
Rate
within
Year
Fixed
Interest
Rate 1 to 5
Years
Fixed
Interest
Rate over
5 Years
%
$
$
Cash and cash equivalents
2.54
300,318 4,500,000
Trade and other
receivables
Financial Liabilities
-
-
-
2.54
300,318 4,500,000
Trade and other payables
-
-
-
52 (cid:122) ANTISENSE THERAPEUTICS
Non-
Interest
Bearing
$
Total
$
400
4,800,718
420,297
420,297
420,697
5,221,015
458,154
458,154
$
-
-
-
-
$
-
-
-
-
30 June 2015
Financial Assets
Weighted
Average
Eff ective
Interest
Rate
Floating
Interest
Rate
Fixed
Interest
Rate
within
Year
Fixed
Interest
Rate 1 to 5
Years
Fixed
Interest
Rate over
5 Years
%
$
$
Cash and cash equivalents
2.53
329,205 6,500,000
Trade and other
receivables
Financial Liabilities
-
-
-
2.53
329,205 6,500,000
Trade and other payables
-
-
-
Non-
Interest
Bearing
$
Total
$
400 6,829,605
744,480
744,480
744,880 7,574,085
291,881
291,881
$
-
-
-
-
$
-
-
-
-
There has been no change to the Company's exposure to interest rate risk or the manner in which it manages and
measures its risk in the year ended 30 June 2016.
The Company has conducted a sensitivity analysis of the Company's exposure to interest rate risk. The percentage
change is based on the expected volatility of interest rates using market data and analysts forecasts. The analysis shows
that if the Company's interest rate was to fl uctuate as disclosed below and all other variables had remained constant,
then the interest rate sensitivity impact on the Company's profi t after tax and equity would be as follows:
2016: +1% (2015: +1%)
2016: -1% (2015: -1%)
FOREIGN CURRENCY RISK
(Higher) / Lower
(Higher) / Lower
2016
48,007
(48,007)
2015
68,296
(68,296)
The Company is exposed to foreign currency risk via the trade and other receivables and trade and other payables that
it holds. Foreign currency risk is the risk that the value of a fi nancial instrument will fl uctuate due to changes in foreign
exchange rates. The Company aims to take a conservative position in relation to foreign currency risk hedging when
budgeting for overseas expenditure however; the Company does not have a policy to hedge overseas payments or
receivables as they are highly variable in amount and timing, due to the reliance on activities carried out by overseas entities
and their billing cycle.
The following fi nancial assets and liabilities are subject to foreign currency risk:
Trade and other payables (AUD/USD)
Trade and other payables (AUD/GBP)
Trade and other payables (AUD/EUR)
2016
$
124,724
1,333
24,849
2015
$
31,109
13,899
10,108
Foreign currency risk is measured by regular review of our cash forecasts, monitoring the dollar amount and currencies
that payment are anticipated to be paid in. The Company also considers the market fl uctuations in relevant currencies to
determine the level of exposure. If the level of exposure is considered by Management to be too high, then Management
has authority to take steps to reduce the risk.
ANNUAL REPORT 2016 (cid:122) 53
Notes to the Financial Statements continued
For the year ended 30 June 2016
Note 21: Financial Risk Management Objectives and Policies (continued)
(e) Financial Risk Management (continued)
FOREIGN CURRENCY RISK continued
Steps to reduce risk may include the acquisition of foreign currency ahead of the anticipated due date of an invoice or
may include negotiations with suppliers to make payment in our functional currency. Management mitigated foreign
currency risk by purchasing Great British Pounds currency during the current fi nancial year. Should Management
determine that the Company should consider taking out a hedge to reduce the foreign currency risk, they would need to
seek Board approval.
The Company conducts some activities outside of Australia which exposes it to transactional currency movements,
where the Company is required to pay in a currency other than its functional currency.
There has been no change in the manner the Company manages and measures its risk in the Year Ended 30 June 2016.
The Company is exposed to fl uctuations in United States dollars, Euros, and Great British Pounds. Analysis is conducted
on a currency by currency basis using sensitivity variables.
The Company has conducted a sensitivity analysis of the Company's exposure to foreign currency risk. The sensitivity
analysis variable is based on the expected overall volatility of the signifi cant currencies, which is based on management’s
assessment of reasonable possible fl uctuations taking into consideration movements over the last 6 months each year
and the spot rates at each reporting date. The analysis shows that if the Company's exposure to foreign currency risk was
to fl uctuate as disclosed below and all other variables had remained constant, then the foreign currency sensitivity impact
on the Company's loss after tax and equity would be as follows:
AUD/USD: 2016: +3% (2015: +3%)
AUD/USD: 2016: -3% (2015: -3%)
AUD/GBP: 2016: +3% (2015: +3%)
AUD/GBP: 2016: -3% (2015: -3%)
AUD/EUR: 2016: +3% (2015: +3%)
AUD/EUR: 2016: -3% (2015: -3%)
CREDIT RISK
(Higher) / Lower
(Higher) / Lower
2016
(3,742)
3,742
40
(40)
745
(745)
2015
(933)
933
417
(417)
303
(303)
The Company is exposed to credit risk via its cash and cash equivalents and trade and other receivables. Credit risk is the
risk that a counter-party will default on its contractual obligations resulting in a fi nancial loss to the Company. To reduce
risk exposure for the Company's cash and cash equivalents, it places them with high credit quality fi nancial institutions.
Historically the Company has had minimal trade and other receivables, with the majority of its funding being provided
via shareholder investment. Traditionally the Company's trade and other receivables relate to GST refunds and Research
and Development Tax Concession amounts due to the Company from the Australian Tax Offi ce. At 30 June 2016 GST
accounted for $5,342 (2015: $13,608) of the trade and other receivables, respectively. At 30 June 2016, accrued interest
from the Commonwealth Bank amounted to $9,839 (2015: $12,579).
The trade and other receivables at 90+ days also include the rent bond on the offi ce premises of $8,231. This is not
considered impaired. The Board believes that the Company does not have signifi cant credit risk at this time in respect of
its trade and other receivables.
54 (cid:122) ANTISENSE THERAPEUTICS
The Company has analysed its trade and other receivables below. All trade and other receivables disclosed below have
not been impaired.
2016 Trade and other receivables
2015 Trade and other receivables
LIQUIDITY RISK
0-30 days
31-60 days
61-90 days
90+ days
$
420,297
736,249
$
-
-
$
-
-
$
-
8,231
The Company is exposed to liquidity risk via its trade and other payables. Liquidity risk is the risk that the Company will
encounter diffi culty in raising funds to meet the commitments associated with its fi nancial instruments. Responsibility for
liquidity risk rests with the Board who manage liquidity risk by monitoring undiscounted cash fl ow forecasts and actual
cash fl ows provided to them by the Company's Management at Board meetings to ensure that the Company continues to
be able to meet its debts as and when they fall due. Contracts are not entered into unless the Board believes that there
is suffi cient cash fl ow to fund the associated commitments. The Board considers when reviewing its undiscounted cash
fl ow forecasts whether the Company needs to raise additional funding from the equity markets.
The Company has analysed its trade and other payables below:
2016 Trade and other payables
2015 Trade and other payables
Note 22: Group Information
Information about subsidiaries
0-30 days
31-60 days
61-90 days
90+ days
$
458,154
291,881
$
-
-
$
-
-
$
-
-
The consolidated fi nancial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy:
Name
Principal Activities
Country of incorporation
Antisense Therapeutics (HK) Pty Ltd
Provision of licenses
Australia
% Equity interest
2016
100
On 10 July 2012 the parent entity incorporated Antisense Therapeutics (HK) Pty Ltd, a wholly owned subsidiary. The
purpose of this new incorporated entity is to facilitate the provision of the relevant licenses to ATL1102 intellectual
property in a proposed Joint Venture with a Chinese Company.
ANNUAL REPORT 2016 (cid:122) 55
Directors’ Declaration
In accordance with a resolution of the Directors of Antisense Therapeutics Limited, we state that:
1.
In the opinion of the Directors:
(a) the consolidated fi nancial statements and notes of Antisense Therapeutics Limited for the fi nancial Year Ended
30 June 2016 are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the consolidated entity's fi nancial position as at 30 June 2016 and of its
performance for the Year Ended on that date; and
(ii) complying with Accounting Standards and the Corporations Regulations 2001;
(b) the consolidated fi nancial statements and notes also comply with International Financial Reporting Standards as
disclosed in Note 1.c; and
(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
2. This declaration has been made after receiving the declarations required to be made to the Directors by the chief
executive offi cer and chief fi nancial offi cer in accordance with section 295A of the Corporations Act 2001 for the
fi nancial Year Ended 30 June 2016.
On behalf of the board
Signed in accordance with a resolution of the Directors.
Mr Robert W Moses
Independent Non-Executive Chairman
Mr Mark Diamond
Managing Directer and Chief Executive Offi cer
Dated: This day 25th day of August 2016
56 (cid:122) ANTISENSE THERAPEUTICS
Independent Auditor’s Report
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com
Independent auditor’s report to the members of Antisense
Therapeutics Limited
Report on the fi nancial report
We have audited the accompanying fi nancial report of Antisense Therapeutics Limited, which comprises the
consolidated statement of fi nancial position as at 30 June 2016, the consolidated statement of comprehensive
income, the consolidated statement of changes in equity and the consolidated statement of cash fl ows for the year
then ended, notes comprising a summary of signifi cant accounting policies and other explanatory information, and
the directors' declaration of the consolidated entity comprising the company and the entities it controlled at the
year's end or from time to time during the fi nancial year.
Directors’ responsibility for the fi nancial report
The directors of the company are responsible for the preparation of the fi nancial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
controls as the directors determine are necessary to enable the preparation of the fi nancial report that is free
from material misstatement, whether due to fraud or error. In Note 1, the directors also state, in accordance with
Accounting Standard AASB 101 Presentation of Financial Statements, that the fi nancial statements comply with
International Financial Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the fi nancial report based on our audit. We conducted our audit
in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical
requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about
whether the fi nancial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial
report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the fi nancial report, whether due to fraud or error. In making those risk assessments, the auditor
considers internal controls relevant to the entity's preparation and fair presentation of the fi nancial report in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity's internal controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating
the overall presentation of the fi nancial report.
We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit
opinion.
Independence
In conducting our audit we have complied with the independence requirements of the Corporations Act 2001. We
have given to the directors of the company a written Auditor’s Independence Declaration, a copy of which is included
in the directors’ report.
A member fi rm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
ANNUAL REPORT 2016 (cid:122) 57
Independent Auditor’s Report continued
Opinion
In our opinion:
a.
the fi nancial report of Antisense Therapeutics Limited is in accordance with the Corporations Act 2001,
including:
i
giving a true and fair view of the consolidated entity’s fi nancial position as at 30 June 2015 and of
its performance for the year ended on that date; and
ii complying with Australian Accounting Standards and the Corporations Regulations 2001; and
b.
the fi nancial report also complies with International Financial Reporting Standards as disclosed in Note 1.
Report on the remuneration report
We have audited the Remuneration Report included in pages 17 to 24 of the directors' report for the year
ended 30 June 2016. The directors of the company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to
express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
Opinion
In our opinion, the Remuneration Report of Antisense Therapeutics Limited for the year ended 30 June 2016,
complies with section 300A of the Corporations Act 2001.
Ernst & Young
Joanne Lonergan
Partner
Melbourne
25 August 2016
A member fi rm of Ernst & Younq Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
58 (cid:122) ANTISENSE THERAPEUTICS
Number of Holders of Equity Securities
Ordinary Shares
Distribution of Quoted Security holders
Shareholder Information
As at 7 September 2016
176,512,483 fully paid ordinary shares are held by 2,699
individual shareholders.
All ordinary shares carry one vote per share.
Options
46,950,984 options exercisable at $0.27 on or before 31
January 2017, are held by 789 individual holders.
72,000 options exercisable at nil on or before 30 July
2018 are held by 3 individual holders.
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 +
Total number of
shareholders
Unmarketable
parcels
(under $500)
Twenty Largest Ordinary Shareholders
Shareholders
1
2
3
4
5
CORTENDO CAYMAN LTD
POLYCHIP PHARMACEUTICALS PTY LTD
CITICORP NOMINEES PTY LIMITED
CITYCASTLE PTY LTD
SHARED OFFICE SERVICES PTY LTD
6 MR ROBERT WILLIAM MOSES
7
8
9
ABN AMRO CLEARING SYDNEY NOMINEES PTY LTD
FLINTBERG PTY LTD
SKED PTY LTD
10 DABCO HOLDINGS PTY LTD
11
BAYSPEC PTY LTD
12 MR JASON ERIC CONSTABLE & MRS CATHERINE MICHELLE CONSTABLE
13 MR SEK YUEN WAN
14 MR JAN MARACH & MRS RENATA MARACH
15 MR LESLIE SMITH
16 MR MARK DIAMOND
17 MR MICHAEL ANDREW CLARK
18 MRS MARGARET ANN RYAN & MR MICHEAL RODNEY RYAN
19 MR JAMES EDWARDS
20 MRS LOIS ALMA MOORE & MR ALISTAIR ALEXANDER MOORE
Total
Total balance of remaining holders
No. of Holders
Ordinary Shares
Listed Options
476
715
365
881
262
2,699
1,591
Number
15,025,075
10,190,649
6,254,088
4,080,433
4,020,877
3,354,434
3,208,310
2,607,404
2,419,896
1,848,002
1,810,000
1,707,391
1,614,026
1,571,515
1,500,000
1,457,914
1,403,645
1,310,000
1,285,216
1,261,993
67,930,868
108,581,615
140
260
98
230
61
789
683
%
8.512
5.773
3.543
2.312
2.278
1.900
1.818
1.477
1.371
1.047
1.025
0.967
0.914
0.890
0.850
0.826
0.795
0.742
0.728
0.715
38.48
61.52
ANNUAL REPORT 2016 (cid:122) 59
Shareholder Information continued
Twenty Largest Listed Optionholders
Optionholders
1
XCELERATE TRADING PTY LTD
2 MR JAN MARACH & MRS RENATA MARACH
3
KIRZY PTY LTD
4 MR LESLIE SMITH
5. MRS JANE CHRISTABEL KIDMAN
6
BOUDGARD NOMINEES PTY LTD
7 MS LEE GARDINER
8 MR DAVID BOUDVILLE
9 MR ANDREW LEONARD CLARK
10 CITYCASTLE PTY LTD
11 MR ROBERT WILLIAM MOSES
12
13
FLINTBERG PTY LTD
ARMDIG PTY LTD
14 MR SINI MATHEW
15
16
CITICORP NOMINEES PTY LIMITED
PATERSONS SECURITIES LIMITED
17 MR PETER ALBERT DAVID SINGER
18
19
ANDNEL AUSTRALIA PTY LTD
SYED CORPORATION PTY LTD
20 MS YUK YING LAI & MR TZE WAI WONG
Total
Total balance of remaining holders
Unquoted Equity Securities Holdings Greater Than 20%
Nil
Substantial Shareholders
Number
4,790,342
4,007,747
3,350,000
2,336,667
1,843,496
1,779,967
1,582,811
1,500,000
1,440,000
1,316,667
700,001
677,501
620,000
581,769
506,846
464,427
450,000
390,743
387,393
365,396
29,091,773
17,859,211
%
10.203
8.536
7.135
4.977
3.926
3.791
3.371
3.195
3.067
2.804
1.491
1.443
1.321
1.239
1.080
0.989
0.958
0.832
0.825
0.778
61.96
38.04
The names of substantial shareholders the Company is aware of from the register or who have notifi ed the Company in
accordance with Section 671B of the Corporations Act are:
CORTENDO CAYMAN LTD
POLYCHIP PHARMACEUTICALS PTY LTD
No. of Shares
15,025,075
10,190,649
60 (cid:122) ANTISENSE THERAPEUTICS
DIRECTORS
Mr Robert W Moses
Independent Non-Executive
Chairman
Mr Mark Diamond Managing Director and Chief
Dr Graham Mitchell
Dr Gary Pace
Executive Offi cer
Independent Non-Executive
Director
Independent Non-Executive
Director
Mr William Goolsbee Independent Non-Executive
Director
Dr Chris Belyea
Independent Non-Executive
Director
(Resigned: 12 November 2015)
Corporate Information
SHARE REGISTER
Boardroom Pty Ltd
Level 12, 225 George Street, Sydney NSW 2000
Australia
Telephone:
1300 737 760
SECURITIES QUOTED
Australian Securities Exchange
- Ordinary Fully Paid Shares (ASX Code: ANP)
American Depository Receipts (ADR)
Level 1 ADR Program, ADRs are traded in the US over-the-
counter (OTC) market.
Ratio: 1 ADR = 20 ordinary shares
Symbol: ATHJY
CUSIP: 037183100
COMPANY SECRETARY
BANKERS
Mr Phillip Hains
Company Secretary and Chief
Financial Offi cer
Commonwealth Bank of Australia
Melbourne Victoria
AUDITORS
Ernst and Young
8 Exhibition Street, Melbourne Victoria 3000
Australia
WEBSITE
www.antisense.com.au
COMPANY
Antisense Therapeutics Limited
ABN 41 095 060 745
REGISTERED OFFICE
6-8 Wallace Avenue, Toorak Victoria 3142
Australia
PRINCIPAL PLACE OF BUSINESS
6-8 Wallace Avenue, Toorak Victoria 3142
Australia
Telephone:
+61 (0)3 9827 8999
SOLICITORS
Minter Ellison
Rialto Towers
Level 23, 525 Collins Street, Melbourne Victoria 3000
Australia
ANNUAL REPORT 2016 (cid:122) 61
6-8 Wallace Avenue,
Toorak Victoria 3142
Australia
T: + 61 (0)3 9827 8999
F: + 61 (0)3 9827 1166