ProMetic Life Sciences Inc. Annual Report 2012

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FY2012 Annual Report · ProMetic Life Sciences Inc.

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ANNUAL REPORT 2012

www.prometic.com

We believe

in our values and vision

We believe

in our values and vision

We have

+14

applications and products
utilizing prometic’s
technologies already approved

+28

applications in development
nearing scale-up and
product approval stages

Our Intellectual property patent portfolio
comprises 192 issued patents, 36 of which were
granted in 2012 and 155 pending applications
that are covered in more than 50 countries

2012 EXECUTIVE SUMMARY

2012 was a fruitful year for ProMetic on many different
fronts: It was a year in which the Corporation successfully
continued to put in place the necessary conditions to achieve
the next stage of its growth. The Corporation has, as planned,
significantly improved its overall financial performance
delivering in excess of its projected $21 million of revenues
on its base case. This, combined with the strategic equity
investment made by Shenzhen Hepalink Pharmaceutical Co.,
Ltd. (“Hepalink”), has had the direct result of improving its
key financial metrics and has provided funds for projects that
will support future growth.

A growing number of transactions and strategic partnerships
were secured impacting directly on the 2012 results and more
importantly laying the foundation for sustainable growth into
the future. The commercial opportunities being sought by
the business development team continued to be focused on
those which will provide a long-term annuity revenue stream
to the business. The Corporation has seen its technologies
play an important role in allowing several of its clients’ product

development programs to confidently move forward in 2012.
In addition, ProMetic continued to add to its solid pipeline of
business through new strategic partnerships as a result of the
numerous commercial advantages provided by its state of the
art enabling technologies.

In 2013 and beyond, management will continue to focus on
growing shareholder value by seeking further collaborations
and strategic alliances that are synergistic to ProMetic’s
core competencies, and that leverage the value of its
technology platforms both immediately and over the long
term. Management is confident that the difficult liquidity
situation faced in the recent past will continue to improve in
the coming months, through improved trading conditions
and as a result of strategic initiatives such as bringing the
Laval Plasma purification plant ProMetic BioProduction inc.,
on-stream. Naturally, the Company will also continue to
simultaneously monitor and control its cost structure as much
as possible.

REVENUES

EBITDA

2012

2011

2010

2009

2008

2007

2006

The improving trend in financial performance, observed over recent years,
continued in 2012 as the Corporation delivered the best annual financial
performance in its history.

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- Revenues increased by 32% to $23.3 million compared to 2011

- EBITDA * in 2012 ended up at $2.5 million compared to ($0.5) in 2011

* EBITDA is a non-GAAP measure, employed by the Company to monitor its
performance Therefore it is unlikely to be comparable to similar measures
presented by other companies. The Company calculates its EBITDA by subtracting
from revenues, its cost of goods sold, its research and development expenses
rechargeable and non-rechargeable as well as its administration and marketing
expenses and excluding amortization of capital assets and licenses and patents.

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-5

-10

-15

2012

2011

2010

2009

2008

2007

-20

2006

TABLE OF CONTENT

Significant Events

Message to Shareholders

Proteins and Therapeutics

MD&A

Financial Statements

Management Team and
Board of Directors

Corporate Information Back Cover

WHO WE ARE
ProMetic Life Sciences Inc is a long-
established, biopharmaceutical company
with globally recognised expertise in
bioseparations, plasma-derived therapeutics
and small-molecule drug development.
Headquartered in Montreal, Canada and
listed on the Toronto Stock Exchange
(TSX symbol PLI), ProMetic’s mission is
to bring safer, cost-effective and more
patient-friendly products to market.

We offer our state of the art technologies
for large-scale drug purification, drug
development, and the elimination of
pathogens to a growing base of industry
leaders and use our own affinity technology
that provides for highly efficient extraction
and purification of therapeutic proteins
from human plasma in order to develop
best-in-class therapeutics. We are also
developing our own novel small-molecule
therapeutics products targeting unmet
medical needs in the fields of fibrosis,
haematology and oncology.

WHAT WE DO:
ProMetic’s business is organized and
based upon 2 distinct business segments:
protein technologies (bioseparation,
plasma-derived biotherapeutics) and small
molecule therapeutics.

BIOSEPARATION:
Bioseparation has been a fast growing and
profitable business segment for ProMetic
since 2007. Our UK (Isle of Man and
Cambridge) based subsidiary, ProMetic
BioSciences Ltd (“PBL”), is responsible for
the development and commercialization of
our core bioseparations technologies and
products. Through this subsidiary, we offer
the following:

- Development of unique and proprietary
affinity adsorbents and bioprocesses
based on our Mimetic LigandTM
purification platform.

- Licensing of technologies to
biopharmaceutical companies

- Sale of unique and proprietary
affinity adsorbents (affinity resins) to
biopharmaceutical companies

- Supply of necessary proprietary affinity
adsorbents (affinity resins) used in
our own manufacturing processes,
ProMetic’s Plasma Protein Purification
System (“PPPS™”). PPPSTM is a
multi-product sequential purification
process that provides for highly
efficient extraction and purification
of therapeutic proteins from human
plasma in order to develop best-in-class
therapeutics.

Our proprietary affinity adsorbents
and Mimetic Ligand™ purification
platform are used by numerous medical,
pharmaceutical and biopharmaceutical
companies worldwide. The vast selection of
our ligand libraries’ allows for the selection
of almost any target protein.

Our bioseparation technologies enable
the capture of multiple targeted proteins
directly from various source products, and
provide for a highly efficient and cost-
effective separation process from other
proteins and impurities delivering high
yields of purified product. As a result,
manufacturing clients using ProMetic’s
bioseparations technologies experience
significant reductions in their cost of goods
and costs associated to drug purification.

PLASMA-DERIVED BIOTHERAPEUTICS
Our U.S.-based subsidiary, ProMetic
BioTherapeutics Inc. (“PBT”) is
responsible for the development and
commercialization of the manufacturing
processes based on PBL’s affinity
technology that provides for highly
efficient extraction and purification
of therapeutic proteins from human
plasma in order to develop best-in-class
therapeutics. ProMetic’s PPPSTM multi-
product sequential purification process,
originally developed in collaboration with
the American Red Cross (“ARC”), employs
powerful affinity separation materials in a
multi-step process to extract and purify

commercially important plasma proteins in
high yields. It allows for the targeting and
removal of multiple high-value proteins from
a single plasma sample at unprecedented
activity levels using ProMetic’s Mimetic™
Ligand adsorbent technology.

This proprietary process also provides for
the recovery of new biotherapeutics as they
are discovered and identified. The effect
of this process is to reduce the significant
losses incurred when using the more
conventional Cohn precipitation process.

To this effect, ProMetic created a new
subsidiary, ProMetic BioProduction Inc.
(“PBP”) formerly known as “NewCo”,
located in Laval, Quebec for the develop-
ment and manufacturing of high-value
plasma-derived therapeutics biosimilars for
its current and future clients.

SMALL MOLECULE THERAPEUTICS
ProMetic BioSciences Inc. (“PBI”) is a
small-molecule drug discovery business,
with a strong pipeline of products. PBI
scientists are focused in developing orally
active drugs that can emulate the activity
of proven therapeutics, and provide
competitive advantages including improved
pharmaco-economics and safety profile.
Typically, these first-in-class therapeutics
are orally active, with efficacy and high
safety profiles confirmed in several in vivo
experiments and enjoy strong proprietary
positions. The unmet medical applications
targeted are fibrosis, inflammation,
autoimmune diseases, oncology and
hematopoietic disorders.

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SIGNIFICANT EVENTS

JANUARY
On January 26, 2012, ProMetic
received a $2.5 million purchase
order under its ongoing supply
agreement with Octapharma,
a leading, Swiss based,
independent global plasma
fractionation company that
specializes in human proteins.

This order related to the
purchase of PrioClear™, a
proprietary prion capture resin
incorporated into Octapharma’s
manufacturing process for
its solvent/detergent treated
plasma product, Octaplas LG®.
Octaplas LG® is approved for
marketing in several European
countries and the USA

FEBRUARY
On February 17, 2012, ProMetic
completed its renegotiation of
its long term debt by restructur-
ing the repayment of $4 million
worth of secured loans previously
provided by some of its long term
stakeholders and improved its
short term liquidity by securing
an additional $1 million equity
investment in ProMetic from one
of the Stakeholders.

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MAY
On May 3, 2012, ProMetic
announced the publication
of the final results of the
Prion-filtered vs. standard
Red cells in Surgical and
Multi-transfused patients
(“PRISM”) study by the UK
Advisory Board for the Safety
of Blood Tissues and Organs
(“SaBTO”).

The final conclusions of the
study were that following
administration of P-Capt®
filtered red cells to patients:

None of the antibodies found in
study patients were attributable
to use of the filter;

There was no significant
difference in the number of
definite and probable adverse
events in patients receiving
P-Capt® filtered red cells and
controls patients who received
standard red cells;

The use of the P-Capt® filter does
not reduce the overall safety of
transfusion (i.e. the filter is safe
to use);

If implemented, the use of
P-Capt® filters would require
post-marketing surveillance
to assess continued safety in
large populations of transfused
patients.

On May 7, 2012, ProMetic
signed definitive agreements
with Hematech BioTherapeutics
Inc. (“HBI”) for the co-
development and co-exclusive
commercialization, on a
world-wide basis (excluding
China), of a plasma-derived
biopharmaceutical product
targeting a rare medical
condition (“Orphan Drug”) and
for a strategic manufacturing
alliance.

ProMetic may receive $10 million
of milestone payments from HBI
which will fund the Orphan
Drug’s development program
up to regulatory approval.
Following the completion of
clinical trials and regulatory
approval, the Orphan Drug will
be commercialized jointly by
ProMetic and HBI on a global
basis (excluding China), with
both parties sharing profits
equally. The Orphan Drug will
be manufactured by ProMetic
in its Laval facility and in HBI’s
planned facility in Taiwan.

The deal includes a strategic
alliance providing HBI rights to
ProMetic’s proprietary PPPS™
to manufacture plasma-derived
biopharmaceuticals in a
Taiwanese facility to be built and
operated by HBI.

MARCH
On March 6, 2012, ProMetic
signed an agreement with an
existing client to proceed to
the next stage of an ongoing
commercial development
program. This phase of the
commercial development
program called for activities
that provided ProMetic with an
estimated $2.5 million of service
revenues throughout 2012. An
upfront payment of $0.8 million
was also triggered on the signing
of the agreement.

APRIL
On April 24, 2012, ProMetic
secured a $1.4 million agreement
with a European biotechnology
manufacturing company. Under
this agreement, ProMetic will
develop an affinity resin product
and its related manufacturing
process providing its client,
a leader in its field, with a
biosimilar product thereby
enhancing the client’s ability
to increase its share of a well-
established and lucrative market.

On April 25, 2012, ProMetic
received a $1.9 million follow-on
purchase order pursuant to
an existing long-term supply
agreement entered into with a
US based biopharmaceutical
company for the manufacturing
of an established bio pharma-
ceutical product. This
$1.9 million purchase order
related to the supply of a
proprietary affinity adsorbent
developed and manufactured
by ProMetic’s UK subsidiary,
ProMetic Biosciences Ltd.

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2012

OCTOBER
On October 16, 2012, ProMetic
announced two strategic
agreements with Shenzhen
Hepalink Pharmaceutical
Co., LTD, (“Hepalink”). A
commercial agreement that
relates to a research and
development project based on
ProMetic’s proprietary protein
technologies and which includes
$11 million in licensing fees
and milestone payments to
ProMetic, of which $2 million
was paid up front. ProMetic may
receive remaining milestones for
product development activities
to be performed on behalf of
Hepalink.

The strategic investment, which
is in addition to the commercial
agreement, consists of a
$9.8 million equity investment
in ProMetic at a share price of
$0.204 per share (or 63% over
the October 15, 2012 closing
share price). This investment is
enabling the execution of various
strategic initiatives, including the
operational launch of ProMetic’s
GMP plasma facility, located in
Laval, Quebec and dedicated to
the manufacturing of plasma
derived products. ProMetic’s
clients and partners such as
NantPharma LLC and Hematech
BioTherapeutics shall rely on the
supply of cGMP bulk products
from the Laval facility to support
their respective clinical trials and
commercial product launches.

NOVEMBER
On November 1, 2012, ProMetic
presented new and positive data
on two of its orally active anti-
fibrotic drug candidates at the
annual Meeting of the American
Society of Nephrology in San
Diego, California. The new data
demonstrates efficacy in diabetic
kidney disease and other fibrotic
models.

Diabetic nephropathy is
increasing in incidence and is
now the number one cause of
end-stage renal disease. In a gold
standard animal model used to
mimic the long term detrimental
effects of diabetes on the
kidney and the liver, ProMetic’s
once a day oral treatment
with PBI-4050 demonstrated a
significant reduction in kidney
hyperfiltration, proteinuria
and hepatic steatosis. These
results suggest that PBI-4050
could potentially be used as
a novel therapy for diabetic
kidney disease and liver steatosis.
PBI-4050 has been shown to
treat fibrosis in several different
animal models and is now being
prepared to enter into clinical
development in 2013.

DECEMBER
On December 5, 2012, ProMetic
announced the achievement
of the first milestone related to
the advancement of a plasma-
derived biopharmaceutical
product targeting a rare
medical condition (“Orphan
Drug”) in partnership with
Hematech Biotherapeutics Inc.
(“Hematech”).

On May 15, 2012, ProMetic
received a $4.2 million follow-on
purchase order pursuant to
its ongoing long-term supply
agreement entered into with a
major global pharmaceutical
company in 2009.

This $4.2 million purchase
order relates to the purchase of
a proprietary Mimetic Ligand™
affinity adsorbent developed and
manufactured by ProMetic’s UK
subsidiary.

JULY
On July 30, 2012, ProMetic and
NantPharma LLC announced
the formation of an affiliate
biopharmaceutical company,
NantPro BioSciences, LLC,
to develop and commercialize
a plasma-derived bio-
pharmaceutical product for
the US market. The newly
formed US based company
has entered into exclusive
development, licensing and
manufacturing agreements
with ProMetic.

Under these agreements,
ProMetic has granted NantPro
BioSciences LLC rights to its
Plasma Protein Purification
System (“PPPS™”) and Prion
Reduction technologies for
the exclusive development and
commercialization of a plasma-
derived biopharmaceutical
product for the US market. The
agreements provide ProMetic
with grant back rights to the
biopharmaceutical product for
markets outside the US, subject
to payment of royalties by
ProMetic to NantPro BioSciences
LLC arising from ProMetic sales
outside the US.

The $1.0 million milestone
payment is part of an overall
$10 million drug licensing
and development agreement
concluded with Hematech in
May, 2012

Following the completion of
clinical trials and regulatory
approval, the Orphan Drug will
be commercialized jointly by
ProMetic and Hematech on a
global basis (excluding China),
with both parties sharing profits
equally. The Orphan Drug will
be manufactured by ProMetic in
its Laval, Quebec facility and in
HBI’s planned facility in Taiwan.

On December 20, 2012,
ProMetic announced that it is
developing a second plasma
derived biopharmaceutical for
NantPharma LLC.

This development program
emanates from ProMetic’s
Plasma Protein Purification
System (“PPPS™”) and
Prion Reduction Technology.
ProMetic is responsible for the
development and manufacturing
services, including the
production in its Laval, Quebec
facility of cGMP bulk active
product to enable the IND filing
and provide product required
for bioequivalence trials. Upon
FDA approval, ProMetic will
exclusively manufacture and
supply the commercial require-
ments of the cGMP bulk active
to NantPharma LLC, who will be
responsible for completing the
final sterile manufacturing steps.

By the end of December 2012,
all regulatory clearances
were received for Hepalink’s
investment to proceed.

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MESSAGE TO SHAREHOLDERS

WE HAVE DRAMATICALLY IMPROVED OUR

OVERALL FINANCIAL PERFORMANCE,

REACHING NEW HIGHS ON MANY OF OUR

KEY FINANCIAL INDICATORS. WITH RECORD

ANNUAL SALES EXCEEDING $23 MILLION,

POSITIVE ANNUAL EBITDA OF $2.5 MILLION

AND A SIGNIFICANT IMPROVEMENT OF

OUR BALANCE SHEET, WE ARE NOW WELL

POSITIONED TO CONTINUE BUILDING UPON

THESE SOLID ACHIEVEMENTS.

2012 was also a successful year in regards to our business development initiatives and efforts.
We have seen our technologies play an important role in allowing our clients’ product
development programs to confidently move forward. We have secured new strategic partnerships
in both established and emerging markets and increasing market recognition of the numerous
commercial advantages provided by our state of the art enabling technologies.

We had set for ourselves some ambitious corporate objectives for 2012. Amongst which were
the broadening of our customer base both in territory and types and the establishment of
meaningful new product development programs and strategic alliances with key industry
players. It was also our ambition to see our continuous efforts finally starting to be reflected
through the significant improvement of our financial performance. The results are obvious;
we have indeed successfully improved the vast majority of our key financial indicators.
We are pleased by our achievements but remain fully aware of the tasks lying ahead to insure
we reach all our ambitious corporate objectives. We remain unequivocally focused on our goal
to position the company as the global player of choice in all of its activity sectors and dedicated
in having our state of the art technologies increasingly recognized as industry standards.

Certain significant events especially come to mind as we review and analyze our much
improved yearly performance. These events have played a key role in our strong 2012
performance but more importantly, they will play a critical role in the coming years in
insuring our future growth.

The agreement with our partner Nantpharma LLC to secure the formation of an affiliate
biopharmaceutical company (NantPro BioSciences LLC) for the development and
commercialization of a plasma-derived biopharmaceutical product for the US market is a
perfect example of this. We can already see the mutual benefits of such an association as
demonstrated in late 2012 by the addition of a second plasma-derived biopharmaceutical
product to the product pipeline. ProMetic has already started transitioning towards
greater value creation as evidenced by its responsibility towards product development and
manufacturing services, including the production in its Laval facility of the cGMP bulk active
pharmaceutical ingredient. The leveraging of our existing technologies and processes has
finally started and we intend to relentlessly pursue similar additional opportunities in order
to insure that our future growth ambitions are met successfully.

Another 2012 commercial highlight demonstrating our migration towards greater value
creation is the signature of definitive agreements with Hematech BioTherapeutics. These
agreements target the co-development and co-commercialization on a global basis (excluding
China) of a plasma derived biopharmaceutical enabled through our technology and targeting
a rare medical condition (“Orphan Disease”). We have also secured with Hematech a strategic

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2012

alliance for the manufacturing of other
plasma derived biopharmaceutical products
in a Taiwanese facility to be built and
operated by Hematech.

China National Biotech Group in China
(“CNBG”) successfully scaled-up our
proprietary manufacturing platform and
process for plasma derived therapeutics.
All the engineering and technical data
generated along with the plant footprint and
use of equipment can easily be transferred
and adapted to the reality of our Laval
facility. This represents significant off-
balance sheet investments and upcoming
project timelines related savings from which
our Laval facility will greatly benefit in 2013.
This should more than compensate for the
additional delays encountered into 2012.

The NantPharma LLC and Hematech
partnerships clearly validate our decision
to invest significant monetary and human
resources to develop our own manufacturing
platform as well as the necessity to have our
own plasma treatment facility. They are
tangible examples that our manufacturing
platform creates value for our commercial
partners and provide undeniable competitive
advantages. They also reflect our ambition to
eventually pursue ourselves the commercia-
lization of highly valuable products targeting
rare diseases and unmet medical needs.

Finally, a review of our 2012 achievements
would certainly not be complete without
the mention of the $21 million commercial
and strategic equity investment agreements
secured with Shenzhen Hepalink
Pharmaceutical. On top of the $11 million
commercial agreement, the $10 million
equity investment made by Hepalink will not
only facilitate the operational launch of our
plasma facility in Laval, Quebec, it has also
provided us with the financial means to allow
one of our lead therapeutic compounds to
progress towards clinical trial stages, another
generally recognized value creation event.

We are also quite pleased to have recognized
early enough the need for ProMetic to
establish a strong presence in emerging
markets. Many years of hard work and key
relationships development are starting to
bear fruit. ProMetic is now extremely well
positioned to become a dominant industry

player in what is considered by many to be
one of the most phenomenal growth vectors
for many years to come. We anticipate
our partnerships with some of the most
recognized emerging markets industry
leaders (such as China National Biotech
Group) to play a key role in our market
expansion strategies.

2012 has proven to be the year in which the
necessary and pivotal agreements to allow
for future growth came to life. 2013 is now
the year in which we intend to continue
building upon and definitely a year in which
operational execution will be of crucial
importance. As such, we intend to make the
following our key priorities for 2013:

It is also worth noting that all these
agreements and the ones to come represent
significant recurring revenue streams in the
making. They will play a critical role in the
future enabling and execution of strategic
initiatives tied to our growth and financial
performance objectives.

While the progression of the Protein
Technologies business drew most attention
in 2012, our small molecule therapeutics
finalized the necessary steps required to
take one of its lead drug candidates in
a state of readiness to enter the clinics.
PBI-1402 program has been further
advanced, the chemical synthesis of
PBI-4050 further optimized and scaled up,
and several tests confirming the safety
profile of these drugs completed.

The quality of our R&D program and
performance of our lead drug candidates
to date has drawn the interest of leading
medical experts who are in turn very involved
to define the respective clinical programs
that would be required to secure regulatory
approval for the targeted indications. While
some unmet medical indications may
represent the highest value on a long term
basis, the development strategy pursued may
initially target smaller niche indications as
point of commercial entry before expanding
to even more lucrative medical uses.

In addition to Protein Technologies’
expected growth in 2013, we anticipate that
our proprietary drug candidates will also
contribute significantly to the value creation
this year and beyond.

A BUSINESS DEVELOPMENT:

- Broadening of client base
- Leveraging of existing relationships to
secure new business opportunities with
existing clients
- Increasing recognition of technological
advantages by the industry

B REVENUES AND FINANCIAL METRICS

- Continuing revenue growth
- Continuing improvement of liquidity
and financial position
- Continuing improvement in all key
financial indicators

C OPERATIONAL EXECUTION

- Operational launch of ProMetic’s plasma
purification facility in Laval, Quebec
- Meeting various development milestones

D THERAPEUTICS

- Lead compounds advancing to clinical
trial stages
- Closing of licensing agreements
- Secure orphan drug designation and
filing of first INDs

We wholeheartedly wish to thank all our
employees and collaborators for their
dedication, hard work and cooperation, our
Board of Directors for the valuable guidance
provided as well as all our shareholders and
stakeholders for their ongoing support and
loyalty. We look forward to updating you on
our ongoing progress and achievements as we
keep building a stronger Company.

Best regards,

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Pierre Laurin
President and Chief Executive Officer

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We operate

in a fast growing and lucrative plasma
derived products market worth in excess of

$12 billion

per year”

The Sartobind® Jumbo
is a 5 liter membrane
chromatography
device for large scale
capturing and impurity
removal at high
flow rates.

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PROMETIC’S BUSINESS IS ORGANIZED AND BASED UPON 2 DISTINCT BUSINESS SEGMENTS.

PROMETIC’S STRATEGY IN RELATION TO ITS PROTEIN TECHNOLOGIES BUSINESS SEGMENT HAS

BEEN WELL DEFINED BY MANAGEMENT; APPLYING PROMETIC’S PROPRIETARY TECHNOLOGIES

TO NEW AND EXISTING MARKETS FOR LARGE-SCALE DRUG PURIFICATION, DRUG DEVELOPMENT,

PROTEOMICS (THE STUDY OF PROTEINS) AND THE ELIMINATION OF PATHOGENS.

and products currently under development
and more than 14 applications and products
already approved utilizing ProMetic’s
technologies, PBL’s growing stream of
recurring revenues is expected to achieve
critical mass status and play an important
role in the overall growth and profitability
objectives of the Corporation in the
coming years.

As an example of the commercial potential
of the technology, one of ProMetic’s many
clients placed a $4.2 million purchase order
again in May 2012 relating to the purchase
of a proprietary Mimetic Ligand™ affinity
adsorbent developed and manufactured
by ProMetic’s UK subsidiary. It is worth
noting that this client has not yet received
regulatory approval for its product currently
being developed and that the anticipated
order quantities are expected to significantly
increase once the product reaches regulatory
approval and commercialization stages.
This principle holds true in general for the
vast majority of projects in which ProMetic’s
technology is involved.

Another example of a commercialized
proprietary affinity resin is PrioClearTM.
The PrioClear™ range of prion binding
affinity resins was developed through
Pathogen Reduction and Diagnostic
Technologies, Inc. (“PRDT”), initiated as a
collaborative venture with the American Red
Cross and now majority owned by ProMetic
BioSciences Ltd (PBL). PRDT has applied
its proven affinity technologies to the design
and development of a panel of affinity
adsorbents that enable the highly effective
capture of prion from a range of biological
materials. The PrioClear™ resins are used
commercially to increase the safety of blood
and blood-derived products.

A- BIOSEPARATION
THE TECHNOLOGY
Our bioseparation technologies are used in a
variety of applications for the production and
purification of biopharmaceuticals, for the
capture and removal of biocontaminants or
to extract and recover valuable proteins from
various sources. This is a process commonly
known as “affinity chromatography”. This
process is mainly used for the separation
and isolation of proteins. The technique
relies upon the ability of proteins to
recognize and bind to target biomolecules
(ligands) in a specific and reversible manner.
Affinity chromatography uses an adsorbent
comprised of a porous support matrix to
which the ligand is attached. An affinity
separation is then performed by passing
the protein solution over the adsorbent,
incorporating the ligand, so that the
target protein is adsorbed while allowing
contaminants (other proteins, lipids,
carbohydrates, DNA, pigments, etc.) to pass
through without hindrance. The adsorbent is
normally contained within a chromatography
column. Following adsorption, the adsorbent
is washed with buffer to remove residual
contaminants and then the bound protein
is eluted in pure form.

COMMERCIAL APPLICATIONS
Our proprietary affinity adsorbents are
manufactured in our UK based subsidiary
(Isle of Man), ProMetic BioSciences Ltd
(“PBL”). They are sold to and used by some
of the most reputable biopharmaceutical
companies in the world in their respective
drugs manufacturing processes. Through
years of research and development, PBL has
built an extensive ligand library and now
offers ligands targeting a vast selection of
proteins. PBL has experienced continued
revenue growth and profitability since 2007.
In 2012, PBL contributed to the growth and
increased profitability of the Corporation
by shipping products for more than $11.5
million compared to $5.2 million in 2011.
With more than 28 commercial applications

ProMetic is already seeing the commercial
benefits of selling PrioClearTM. ProMetic
received a $2.5 million purchase order
under its ongoing supply agreement with
Octapharma, a leading, Swiss based,
independent global plasma fractionation
company that specializes in human
proteins. In this application, PrioClear™
is incorporated into Octapharma’s
manufacturing process for its solvent/
detergent treated plasma product,
Octaplas LG®. Octaplas LG® is approved for
marketing in several European countries and
the USA and ProMetic’s sales to OctaPharma
are expected to increase on a yearly basis.

As demonstrated in the graphic below,
revenues from PBL augments year over year
and should continue to do so as ProMetic’s
clients receive regulatory approval and move
into commercial production and supply.

Million $

2008

2007

2006

2012

2011

2009

2010

Year over year growth of sales

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B- PLASMA PROTEIN PURIFICATION SYSTEM

(PPPSTM)
THE TECHNOLOGY
ProMetic exploits a proprietary platform
derived from the use of PBL’s affinity
technology. ProMetic’s US based subsidiary,
ProMetic BioTherapeutics Inc., is responsible
for the development and commercialization
of the plasma purification process
designated as Plasma Protein Purification
System (PPPSTM). PPPSTM is a multi product
sequential purification process originally
developed in collaboration with the
American Red Cross. It employs powerful
affinity separation materials in a multi-step
process to extract and purify commercially
valuable plasma proteins in high yields. It
allows for a highly efficient extraction and
purification of therapeutic proteins from
human plasma in order to develop best in
class biotherapeutic products.

recoveries. Due to the process, some of the
rarest and most valuable proteins can be
accessed, at unprecedented activity levels.
This gentle purification process significantly
reduces the protein losses incurred as
compared to the more conventional Cohn
precipitation method and ultimately leads
to lower costs of goods sold, a definitive
competitive advantage in costs sensitive
markets.compared to the more conventional
Cohn precipitation method and ultimately
leads to lower costs of goods sold, a definitive
competitive advantage in costs sensitive
markets.

COMMERCIAL APPLICATIONS
2012 has proven to be a strong year
for the advancement of ProMetic’s
proprietary PPPS™ technology both in
terms of development and partnering /
commercialization point of views.

ProMetic’s PPPSTM technology provides for
enhanced yield, safety and purity of blood
plasma derived products compared to
industry standards. Each protein is removed
from the plasma by a proprietary process
which includes specific Mimetic Ligand
adsorbents and subsequently purified in a
side stream. The removal sequence has been
optimized to give exceptionally high protein

A- PPPSTM:

Enabling of third party manufacturing
processes:

Following the successful expansion and
strengthening in 2011 of the China
National Biotech Group (“CNBG”)
partnership, the PPPS™ technology
has been successfully scaled up. The
Corporation anticipates the regulatory

PLASMA

Medical Uses

Current Market
Size

Yield advantage
PPPS vs. Industry Avg

Coagulating Factors

Hemophilia

~$ 2 Billion

Plasminogen

Congenital deficiency

Not commercially
available

~+ 50 %

~+ 75 %

Fibrinogen

“Biologic glue” /
Fibrin sealant

~$ 1 Billion

~+ 120 %

Immunoglobulins

Immunodeficiencies
Autoimmune diseases

>$ 6 Billion

~+ 40 %

Albumin

Hypovolumic shock

$ 1.5 Billion

Alpha-1 Antitrypsin

Emphesyma

$ 0.7 Billion

~+ 170 %

Orphan Drugs

Orphan Drug

There are several
Rare diseases for
Which the medical
Condition is known to
be related to a miss-
ing or non functional
protein

Such proteins may
be from difficult to
impossible to extract
with current
manufacturing
process

ProMetic PPPSTM
process is able to
extract and recover
such valuable proteins
and efficiently address
rare diseases

filing by CNBG of the first Investigational
New Drug applications (“IND”) with
the Chinese regulatory authorities, a
recognized value creation event in the
product development continuum. Finally,
the implementation and scale up of
PPPS™ has helped ProMetic in the design
and setting up of its own Laval facility.

ProMetic also secured a deal with

Hematech BioTherapeutics Inc. (“HBI”)
that includes a strategic alliance providing
HBI rights to ProMetic’s proprietary
PPPS™ as well as training and technical
support to manufacture plasma-derived
biopharmaceuticals in a Taiwanese facility
to be built and operated by Hematech.

B- PPPSTM:

Co-commercialization

We saw the leveraging of the PPPS™

technology when ProMetic announced in
2012 the signature of definitive agreements
with HBI for the co-development and
co-exclusive commercialization, on a
world-wide basis (excluding China), of a
plasma-derived biopharmaceutical product
targeting a rare medical condition.

A significant demonstration of the value

of the PPPS™ technology was seen
when ProMetic and NantPharma LLC
also announced the formation of an
affiliate biopharmaceutical company,
NantPro BioSciences, LLC, to develop
and commercialize a plasma-derived
biopharmaceutical product for the US
market. The newly formed US based
company has entered into exclusive
development, licensing and manufacturing
agreements with ProMetic.

Under these agreements, ProMetic has
granted NantPro rights to its Plasma
Protein Purification System (“PPPS™”)
and Prion Reduction technologies
for the exclusive development and
commercialization of a plasma-derived
biopharmaceutical product for the
US market. The agreements provide
ProMetic with grant back rights to the
biopharmaceutical product for markets
outside the US, subject to payment of
royalties by ProMetic to NantPro arising
from ProMetic sales outside the US.

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PROMETIC’S BUSINESS IS ORGANIZED AND BASED UPON 2 DISTINCT BUSINESS SEGMENTS.

The Corporation also announced the

development of a second plasma derived
biopharmaceutical for NantPharma LLC.
In this case, ProMetic will be responsible
for the development and manufacturing
services, including the production in its
Laval, Quebec facility of cGMP bulk active
product. Upon FDA approval, ProMetic
will exclusively manufacture and supply
the commercial requirements of the cGMP
bulk active to NantPharma, who will be
responsible for completing the final sterile
manufacturing steps.

C- PPPSTM:

Enabling of manufacturing process

The development of PPPS™, the critical
mass of licensees and deals allowed
for the implementation and upcoming
operational launch of ProMetic’s GMP
plasma facility, located in Laval, Quebec;
dedicated to the manufacturing of
plasma derived products. ProMetic’s
clients and partners such as NantPharma
and Hematech BioTherapeutics rely
on the supply of cGMP bulk products
from the Laval facility to support their
respective clinical trials and commercial
product launches.

ProMetic’s facility will also serve as a
blue print for other partners’ future
plants and will serve as a technological
showroom and training centre for
partners’ employees.

ProMetic anticipates the official

operational launch to take place in late
2013 and a ramp up of production and
revenue generation starting in 2014 and
accelerating the following years.

The plasma derived products market is a
fast growing and lucrative market worth
in excess of $12 billion per year. Whilst
2/3 of the current markets are in Europe
and North America, it is estimated that
the emerging markets of the Asia & Pacific
region will grow rapidly in the coming years.
With its new secured partnership and recent
technological progress, ProMetic is now
more than ever well positioned to become
a key industry player with recognized world
standard manufacturing processes. The
increasing exploitation of ProMetic’s PPPSTM

platform by its licensees and the Company
itself will play an increasing role in achieving
the corporate objective of developing best
in class, price competitive and safer plasma
derived biotherapeutics.

ProMetic has made great progress in 2012
in regards to its corporate strategy and
objective of moving higher up in the value
creation hierarchy. Most of the fundamental
requirements and steps to insure that the
process is accomplished successfully have
been advanced significantly during the last
year. ProMetic has advanced its technical
platform, increased its critical mass of clients,
improved its financial situation and secured
the necessary alliances to allow for the
transition towards higher value creation to
take place.

As one can see from the following graphic,
ProMetic is successfully transitioning from
a simple provider of enabling affinity resins
used as components in our clients’ drug
manufacturing processes to a manufacturer
and producer of bulk active pharmaceutical
ingredients by leveraging its own affinity
resin technology and proprietary PPPSTM
process aiming to ultimately commercialize
its own therapeutic products.

The difference in value creation resulting
from this is significant as the sales of affinity
resins normally represent 3 to 4 % of the
finished product value. Providing the
platform and process to our partners to
enable them to achieve the manufacturing
of their own products usually allows for
royalties on their sales in the range of single
digit royalties. Moving up the hierarchy
to become the provider of the bulk active
pharmaceutical ingredient usually represents
a substantial gain in value creation of
approximately 30% of the finished product
value. In some cases, ProMetic will even
commercialize itself the biopharmaceutical
product and capture the ultimate 100% of
the value as the seller of the drug.

Transitioning from pure enabling
resin sales to a mix of sales of
resins, royalties, sales of bulk
API & sales of biopharmaceuticals.

Sales of
Biopharmaceuticals

Sales of
Bulk Active Ingredients

Royalties on Licensees’
sales of Biopharmaceuticals

Sales of
affinity Resins to licensees

100

% of finished product value

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We know

The importance of successfully addressing some of the
most important unmet medical conditions. Chronic
Kidney Diseases (“CKD”) and cardiovascular
complications represent 50% of the General Medicare
costs of $343 billion in 2010 in the US.

$343 billion

The medical conditions we are targeting.

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12
12

PROMETIC’S BUSINESS IS ORGANIZED AND BASED UPON 2 DISTINCT BUSINESS SEGMENTS.

AT PBI, SCIENTISTS ARE FOCUSED ON DEVELOPING DRUGS THAT CAN EMULATE THE ACTIVITY
OF PROVEN BIOLOGICS WITH IMPROVED PHARMACO-ECONOMICS AND SAFETY PROFILE.

2- SMALL MOLECULE THERAPEUTICS
THERAPEUTICS
PBI drug discovery program has generated
a strong pipeline of orally active drug
candidates, with efficacy and high safety
profiles confirmed in several in vivo
experiments and solid proprietary positions.
The unmet medical applications targeted are
fibrosis, inflammation, autoimmune diseases,
oncology and hematopoietic disorders.

Fibrosis
In 2012, PBI continued to focus on IND
enabling activities for its anti-fibrotic drug
candidates. Fibrosis is a very complex process
by which inflammation leads to the deposit
of fibrous material to repair the damaged
area. This is the process whereby vital organs
gradually lose their functionality as normal
and functional tissue is replaced by fibrotic
scarring tissue.

The proof of concept data generated to
date confirms our lead drug candidates’
anti-fibrotic activity in several key organs
including the kidneys, the heart, the lungs
and the liver. For example, following a
myocardial infarctus or long standing
chronic conditions such as hypertension or
chronic kidney diseases (CKD), the buildup
of scarring tissue in the heart will lead to
congestive heart failure (CHF).

Twenty six million patients in the U.S. alone
are diagnosed with chronic kidney diseases
(“CKD”). Patients with severe CKD stages
(3 and 4) suffer from a gradual and
accelerated loss of their renal function (end
stage renal disease or ESRD) leading to
the need for hemodialysis. Cardiovascular
complications for ESRD patients on
hemodialysis are a common cause of death.

The positive effects of PBI-4050 observed
in several different animal models designed
to reproduce chronic kidney diseases have
been presented at the American Society of
Nephrology Annual meeting in San Diego
and can be summarized as follows:

GFR (improvement of the renal

function)

Proteinuria (reduction of protein found

in urine)

Serum creatinine (reduction of

creatinine in blood)

Serum urea (reduction of urea in

blood)

Histological lesions (reduction of

fibrosis & lesions, leading to a more
functional and normal renal tissue)

of collagen deposition in the tissue

several biomarkers confirming the

reduction of inflammation and fibrosis

During the past year, ProMetic scientists
have been performing a series of test
to help validate whether the clinical
benefits observed in animals will also
translate to humans. This was achieved by
demonstrating the superior performance
of Prometic’s compounds compared to
commercially available drugs and by
demonstrating equivalent efficacy on human
cells. Furthermore a series of tests were
performed to ensure that our lead drug
candidates would tick the box on safety.

Finally, our scientists have been optimizing
the manufacturing process and performing
technical transfers to GMP manufacturers
so that the Corporation can be in a state of
readiness to move into the clinical trials in
2013.

As a result of the performance and quality
of data generated so far by our lead
compounds, we now have several medical
experts helping us prepare and design
clinical trial programs that will maximize our
chances to obtain regulatory approval for the
targeted indications. We intend to initially
target smaller indications before proceeding
with broader medical conditions and more
lucrative markets as a strategy to increase
market acceptance and recognition.

MEDICARE POPULATION 2010
General Medicare: population, 2010
(n=31,484,849; mean age 69.2)

MEDICARE COSTS 2010
General Medicare: costs, 2010
($343 billion)

CKD 11.9%

CKD 27.5%

CHF 13.2%

DM 26.9%

DM 43.1%

CHF 36.7%

ESRD 1.3%

ESRD 7.5%

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CKD Chronic kidney diseases
ESRD End stage renal disease
CHF Congestive heart failure
DM Diabetes Mellitus

CKD, ESRD and CHF represented over $175 billion
or over 50% of the General Medicare costs in the
USA alone in 2010.

Source: USDRS 2012 Annual Data Report

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TITLE HERE ???

FIBROSIS:

ORGAN LOSS
FUNCTION

FIBROSIS:

ORGAN LOSS
FUNCTION

NON-TREATED

KIDNEY

HEART

LIVER

LUNG

KIDNEY

HEART

LIVER

LUNG

TREATED

Following an injury, activated macrophages
and neutrophils clean up tissue debris, dead
cells, and invading organisms. In the normal
and subsequent wound healing process, the
wound contracts, collagen fibers become
more organized, blood vessels are restored
to normal, scar tissue is eliminated with
the damaged tissue restored to its normal
appearance.

In the case of chronic wounds, the normal
healing process is disrupted. Persistent
inflammation, tissue necrosis, and infection
lead to chronic myofibroblast activation and
excessive accumulation of fibrotic material.

Fibrosis refers to the excessive and
persistent formation of scar tissue which
is associated to organ failure in a variety of
chronic diseases affecting the kidneys, heart,
liver and lungs.

ProMetic compounds have been shown to
reduce or delay the progression of fibrosis.
The histological images above illustrate how
PBI-compounds reduce the overproduction
of extracellular matrix deposition (collagen,
colored in blue in tissue) leading to reduction
of fibrosis in the kidneys, heart, liver
and lungs and this without affecting the
healing process.

PBI-COMPOUNDS

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14
14

MANAGEMENT’S DISCUSSION & ANALYSIS

This Management’s Discussion and Analysis of Operating Results and
Financial Position, aims at helping the reader to better understand the
business of ProMetic Life Sciences Inc. [“ProMetic” or the “Company”]
and the key elements of its financial results. It explains the trends of
the financial situation and the operating results of the Company for
the 2012 financial year compared to the 2011 operating results. It is
intended to complement and supplement its annual consolidated
financial statements and other financial information found in the
Annual Report and consequently it should be read in conjunction
with these and other public documents such as the Company’s Annual
Information Form, which may be found at www.sedar.com. All amounts
in tables are in thousands of Canadian dollars, except where otherwise
noted. This Management’s Discussion and Analysis [“MD&A”] is
current as at March 25, 2013, at which date 487,126,993 common shares
and 11,695,067 options to purchase common shares and 59,169,751
warrants to purchase common shares were issued and outstanding.

The Company’s December 31, 2012 audited consolidated financial
statements have been prepared on the basis of the going concern
assumption which assumes that the Company will realize its assets
and discharge its liabilities in the normal course of business. The use
of these principles may not be appropriate because, as at December
31, 2012, there is significant doubt that the Company will be able to
continue as a going concern without achieving profitable operations
or raising additional financial resources. Since inception, the Company
has incurred losses and has an accumulated deficit of $246 million
as at December 31, 2012. To date, the Company has financed its
activities through collaboration and licensing agreements, bank loans,
government financial support, investment tax credits and the issuance
of debt and equity. Subsequent to December 31, 2012, the Company
received the share subscription receivable of $9.8 million from a
strategic equity investment with Shenzhen Hepalink Pharmaceuticals
Co. Ltd. and completed the renegotiation of the repayment terms
of $4 million of the long-term debt provided by shareholders. While
this provides improvement in the Company’s near-term liquidity,
the Company’s committed cash obligations and expected level of
expenditures for the next 12 months exceed its committed sources
of funds.

The Company’s ability to continue as a going concern is dependent
upon its ability to obtain the ongoing support of its lenders and the
continued activity of its core business including the advancement of
collaboration and licensing agreements for pipeline projects, and
raising additional financing either from the issuance of shares or
long-term debt on acceptable commercial terms. There can be no
assurance of the success of the Company’s operations, on its plans
to achieve profitability, nor on its access to further financing which
may be required to execute these plans.

The Company’s December 31, 2012 audited consolidated financial
statements do not reflect the adjustments that might be necessary to the
carrying amount of reported assets, liabilities and revenues and expenses
and the consolidated statement of financial position classification used
if the Company were unable to continue operations in accordance with
the going concern assumption. Such adjustments could be material.

FORWARD-LOOKING STATEMENTS
The information contained in Management’s Discussion and Analysis of
Operating Results and Financial Position contains statements regarding
future financial and operating results. It also contains forward-looking
statements with regards to partnerships, joint ventures and agreements
and future opportunities based on these. There are also statements
related to the discovery and development of intellectual property, as
well as other statements about future expectations, goals and plans.
We have attempted to identify these statements by use of words such
as “expect”, “believe”, “anticipate”, “intend”, and other words that
denote future events. These forward-looking statements are subject to
material risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. These risks
and uncertainties include but are not limited to the Company’s ability
to develop, and successfully manufacture pharmaceutical products,
and to obtain contracts for its products and services and commercial
acceptance of advanced affinity separation technology. Additional
information on risk factors can be found in the Company’s Annual
Information Form for the year ended December 31, 2012. Shareholders
are cautioned that these statements are predictions and these actual
events or results may differ materially from those anticipated in these
forward-looking statements. Any forward-looking statements we may
make as of the date hereof are based on assumptions that we believe to
be reasonable as of this date and we undertake no obligation to update
these statements as a result of future events or for any other reason,
unless required by applicable securities laws and regulations.

ProMetic is a publicly traded (TSX symbol: PLI), global
biopharmaceutical Company that is comprised of a group of
subsidiaries, specialized in the design of small molecules that mimic
unique and specific interactions between proteins. We are focused
on bringing safer, cost-effective and more convenient products to
both existing and emerging markets. We offer our state of the art
technologies for large-scale drug purification, drug development,
proteomics and the elimination of pathogens. We are also developing
our own novel therapeutics products targeting unmet medical needs
in the field of fibrosis, anemia, neutropenia, cancer, and autoimmune
disease/inflammation as well as certain nephropathies. ProMetic’s
business is organized into two distinct operating segments; Protein
Technologies and Therapeutics, supported by a Head Office in Laval,
Canada.

BUSINESS SEGMENTS
The Protein Technologies segment comprises five operating
subsidiaries:
• ProMetic BioSciences Ltd (“PBL”), based in the United Kingdom

(Isle of Man and Cambridge);

• Pathogen Removal and Diagnostic Technologies Inc. (“PRDT”),

a company registered in Delaware, USA, operated under the control
of PBL;

• ProMetic BioTherapeutics Inc (“PBT”), based in Rockville, MD,

USA;

• ProMetic Manufacturing Inc. (“PMI”), based in Joliette, Quebec,

Canada; and

• ProMetic BioProduction Inc. (“PBP”), based in Laval, Quebec,

Canada., formerly referred to as “Newco”.

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ProMetic’s strategy in relation to its Protein Technologies business
segment has been well defined by management: applying ProMetic’s
proprietary technologies to new and existing markets for large-scale
drug purification, drug development, proteomics (the study of
proteins), and the elimination of pathogens. Where appropriate
this may involve the establishment of a strategic partnership with the
end-user of ProMetic’s technology. The ultimate benefit that can be
derived from ProMetic’s Protein Technologies unit is the enabling of
our partners to manufacture more affordable and safer therapeutics,
thus aligning ProMetic’s business perfectly with current market
pressures on the healthcare sector.

PBL’s bioseparations business has been expanded into a profitable,
cash-generating business through the securing of long-term supply
agreements with major pharmaceutical and biotech companies. The
profits and therefore excess cash generated by this business unit will be
used in the short-term to partly finance the losses of ProMetic’s other
subsidiaries. Revenues from this business unit do not accrue evenly
during the year, so assessment of its profitability must be made on an
annualized basis.

PRDT’s unique prion reduction technology has already been
commercialized through a long-term supply agreement with
Octapharma, who have incorporated the technology into the
manufacturing process of their OctaplasLG® and UniplasLG®
products. The strategy is to expand the commercialization of the
PRDT technology into use in Red Blood Cells (“RBC”) concentrate
by the sale of the P-Capt® prion filter. Thereafter, the Company will
focus on applying PRDT technology to other commercial applications,
including those from other parts of the ProMetic group.

The strategy in relation to PBT is to establish key relationships
with biopharmaceutical companies to co-develop plasma derived
therapeutics relying on PBT’s proven high yield manufacturing process.
Typically through these partnerships, the therapeutics developed
are chosen to address totally unmet medical needs or target very
large and established markets but with a significant safety and cost
leadership advantage. The recent relationship with NantPharma LLC
(“NantPharma”), leading to the creation of NantPro BioSciences, LLC
(“NantPro”) is a prime example of the execution of this strategy.

ProMetic created a new subsidiary, ProMetic BioProduction Inc.,
which has entered into a long-term lease on favorable conditions with
Quebec’s Institut National de la Recherche Scientifique (“INRS”)
for an existing state-of-the-art facility. ProMetic BioProduction Inc.
will undertake the development and manufacturing of high-value
plasma-derived therapeutics for ProMetic’s current and future clients.
PBP will be funded via third-party investments and it is anticipated that
PBP will become self-sustaining through end product services and sales
to ProMetic’s existing clients. An initial $1.5 million investment was
received in 2011. A portion of the Hepalink strategic investment is also
earmarked to fund the start up of PBP’s facility.

The Therapeutics segment is a small molecule drug discovery business
comprised of one entity:
• ProMetic BioSciences Inc. (“PBI”), based in Laval, Quebec, Canada

PBI is a small-molecule drug discovery business, with a strong pipeline
of products. PBI scientists are focused on developing orally active
drugs that can emulate the activity of proven biologics, and provide
competitive advantages including improved pharmaco-economics
and safety profiles. Typically, these first-in-class therapeutics are orally
active, with efficacy and high safety profiles confirmed in several in vivo
experiments and enjoy strong proprietary positions. The unmet medical
applications targeted are fibrosis, inflammation, autoimmune diseases,
oncology and hematopoietic disorders.

ProMetic’s strategy in relation to the Therapeutics business segment
has been to develop orally active compounds leading to more
convenient and cost-effective treatment regimes in already developed
markets or targeting unmet medical needs. ProMetic’s Management
strongly believes that this strategy is highly relevant in the current
market economy where cost pressures, above all else, impact the
adoption of new drugs.

The business model for this division is to partner promising drug
candidates upon completion of in vivo proof of concept studies.
While the Therapeutics Unit has several of such promising drug
candidates, Management has acted in the past two to three years, to cut
the burn-rate of this division such that only costs associated with the
Investigational New Drug (“IND”) enabling and partnering activities for
its anti-fibrosis lead drug candidate PBI-4050 are incurred. As a result
of positive data generated in 2012 and overall progress achieved by the
Company, it is anticipated that PBI-4050 would be advanced toward the
clinical program in 2013.

2012 IN SUMMARY
2012 was a fruitful year for ProMetic on many different fronts. It was
a year in which the Company successfully put in place what it believes
to be the necessary foundation to achieve the next stage in its growth.
The Company has, as planned, significantly improved its overall
financial performance delivering in excess of its projected $21 million
of revenues in its base case. This, combined with the strategic equity
investment by Hepalink has improved key financial metrics.

2012 was also a successful year in regards to the Company’s business
development initiatives. These impacted directly on the results of 2012,
and more importantly, have laid the foundation for future growth. The
Company has seen its technologies play an important role in allowing
its clients’ product development programs to move forward, all the
while adding to its solid pipeline of business through new strategic
partnerships in both established and emerging markets. The Company
is achieving increased market recognition as a result of the numerous
commercial advantages provided by its state-of-the-art enabling
technologies.

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Although the Company achieved its financial objectives for the year,
the revenues of the business do not necessarily accrue in a straight line
on a quarterly basis. The complex manufacturing process means that
there is often a significant lead-time between receipt of an order and
the shipment of products; this, coupled with the non-linear nature
of the work associated with development programs leads to uneven
recognition of revenue throughout the year and on a year-over-year
basis. The Company, therefore, believes that its financial results are best
analyzed and compared on a year-to-year basis period. This feature is
expected to continue in 2013.

Analyzing the business segment performance for the year shows a
consistent performance of the Therapeutics segment in 2012 and 2011.
The Protein Technologies segment showed a significant improvement
in profit for the year 2012 compared to 2011. This performance was
mainly attributable to much stronger license, product and services
revenues. In the Corporate division, the net loss is slightly higher
in 2012 mainly due to increased administration costs and foreign
exchange movements.

PROFIT (LOSS)

(in thousands of Canadian dollars)
Therapeutics
Protein Technologies
Corporate
Total Profit (Loss)

2012
(1,815)
8,560
(7,169)
(424)

2011
(1,894)
5,471
(6,844)
(3,267)

Change $
79
3,089
(325)
2,843

2012 SIGNIFICANT EVENTS
PROTEIN TECHNOLOGIES
• The Company signed a significant research and development

agreement for a project based on its proprietary prion technologies
with Hepalink. The agreement includes $11 million in licensing
fees and milestone payments. In addition, ProMetic may also receive
further funding for product development activities to be performed
on behalf of Hepalink. Hepalink also became a strategic investor in
the Company through a $9.8 million equity investment.

• The Company announced the signing of definitive agreements with
Hematech BioTherapeutics [“Hematech”] for the co-development
and co-exclusive commercialization, on a world-wide basis (excluding
China), of a plasma-derived biopharmaceutical product targeting
a rare medical condition. The deal includes a strategic alliance
providing Hematech rights to ProMetic’s proprietary PPPS™ as well
as training and technical support to manufacture other plasma-
derived biopharmaceuticals in a Taiwanese facility to be built and
operated by Hematech.

• The Company announced the development of a second plasma

derived biopharmaceutical for NantPharma. ProMetic is responsible
for development and manufacturing services, including the
production in its Laval, Quebec facility of cGMP bulk active product.
Upon FDA approval, ProMetic will exclusively manufacture and
supply the commercial requirements of the cGMP bulk active to
NantPharma, who will be responsible for completing the final sterile

manufacturing steps. This second plasma derived biopharmaceutical
development program follows the previously disclosed formation
by NantPharma and ProMetic of a biopharmaceutical company,
NantPro BioSciences, LLC, whose primary mission is to develop
and commercialize a plasma-derived biopharmaceutical product
for the US market. Additional details may be found below under
“Investment in a new associated company”.

THERAPEUTICS
• ProMetic presented new and positive data on two of its orally anti-
fibrotic drug candidates at the annuel meeting of the American
Society of Nephrology in San Diego, California. The new data
demonstrates efficacy in diabetic kidney disease and other fibrotic
models.

• Diabetic nephropathy is increasing in incidence and is now the
number one cause of end-stage renal disease. In a gold standard
animal model used to mimic the long term detrimental effects of
diabetes on the kidney and the liver, ProMetic’s once a day oral
treatment with PBI-4050 demonstrated a significant reduction in
kidney hyperfiltration, proteinuria and hepatic steatosis. These
results suggest that PBI-4050 could potentially be used as a novel
therapy for diabetic kidney disease and liver steatosis. PBI-4050 has
been shown to treat fibrosis in several different animal models and is
now being prepared to enter into clinical developement in 2013.

RESULTS OF OPERATIONS
Year ended December 31, 2012, compared to year ended
December 31, 2011.

SELECTED ANNUAL INFORMATION

December, 31

(In thousands of Canadian dollars)
Revenues
Net profit (loss) attributable
to owners of the parent
Net profit (loss) per share
attributable to owners
of the parent (basic and diluted)
Total assets
Long-term debt (*)

2012
23,321

2011
17,589

2010
11,433

234

(2,554)

(11,283)

0.00
22,991
4,831

(0.01)
8,692
5,724

(0.03)
8,593
13,762

*The long-term debt includes the promissory notes from shareholders,
the repayable government grants and finance lease obligations and the
long-term debt provided by shareholders.

REVENUES
Total revenues for 2012 were $23.3 million and were derived
predominantly from product sales, development service revenues and
licensing revenues.

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In the year ended December 31, 2012, the Company’s product
revenues amounted to $11.5 million compared to $5.2 million in
the previous year. This increase was attributable to higher levels of
underlying business associated with the company’s Bioseparation
products. Service revenues in 2012 were higher than 2011 at

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$5.3 million versus $2.4 million. This increase was mostly due to new
services agreements signed with NantPro. Finally, licensing revenues
totaling $6.4 million were recorded during 2012 and are related to the
contracts with Hepalink, Hematech and NantPro. This compares to
$10 million of licensing revenues recognized in the year ended
December 31, 2011 from the Celgene transaction.

There were no significant revenues associated with the Therapeutics
business unit in 2012 or 2011.

COSTS OF GOODS SOLD AND RECHARGEABLE RESEARCH AND
DEVELOPMENT EXPENSES
The combined costs of goods sold and rechargeable research and
development expenses for the year ended December 31, 2012, totalled
$8.0 million compared to $3.2 million for the year ended December 31,
2011. This difference is explained by the increase in volume of products
sold and the relative product mix.

Based on the combined cost of goods sold and the rechargeable
research and development expenses, a gross profit (sales of goods plus
rendering of services less costs of goods sold and less research and
development expenses rechargeable) of 53% was achieved during the
year ended December 31, 2012 compared to 58% for the year ended
December 31, 2011. There were no costs associated with licensing
revenues.

RESEARCH AND DEVELOPMENT EXPENSES – NON RECHARGEABLE
Non rechargeable research and development expenses were
$7.7 million for the year ended December 31, 2012, compared to
$9.9 million for the year ended December 31, 2011. This is due to the
level of internal versus client-funded research and development
activity undertaken.

ADMINISTRATIVE AND MARKETING EXPENSES
Administrative and marketing expenses were $6.0 million for
the year ended December 31, 2012 which is broadly consistent with
the $5.8 million for the year ended December 31, 2011.

NET LOSS
The Company generated a net loss of $0.4 million or $0.00 per
share (basic and diluted), for the year ended December 31, 2012, as
compared to a net loss of $3.3 million or ($0.01) per share (basic and
diluted) for the year ended December 31, 2011. The decrease in net
loss is primarily due to stronger product and services revenues.

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EBITDA BY SEGMENT
YTD December 31, 2012 - In thousands of dollars

Protein Therapeutics Corporate

Total

Technologies
23,290
(5,326)

31
-

(2,647)

(5,922)

- 23,321
(5,326)
-

Revenues
Costs of goods sold
R&D expenses
rechargeable
R&D expenses
non rechargeable
Administration and
(5,410) (5,966)
marketing expenses
779
Amortization
2,498
EBITDA
EBITDA is a non-GAAP measure, employed by the Company to monitor its performance.
As a financial measure that is not defined or standardized under IFRS, it is unlikely to be
comparable to similar measures presented by other companies. The Company calculates its
EBITDA by subtracting from revenues, its cost of goods sold, its research and development
expenses rechargeable and non-rechargeable as well as its administration and marketing
expenses and excluding amortization of capital assets and licenses and patents.

-
203
(1,507)

(556)
564
9,403

12
(5,398)

(1,741)

(7,663)

INVESTMENT IN A NEW ASSOCIATED COMPANY
On June 29, 2012, the Company and an unrelated partner established
an entity, NantPro BioSciences, LLC (“NantPro”) for the purposes of
developing and commercializing a plasma-derived biopharmaceutical
product for the US market.

At inception, in exchange for 66.66% of the equity units in NantPro,
the Company contributed a license to certain of its intellectual property.
The other investor in NantPro, NantWorks LLC (“NantWorks”),
contributed $2.5 million (US$ 2,500,000) in exchange for 33.33% of the
equity units. The Company measured the initial cost of its investment
in NantPro based on the implied fair value of its contribution to the
extent attributable to the other investor. Consequently, the initial cost
of the investment amounted to $1.7 million (US$1,667,000), with a
corresponding recognition of licensing revenue. Concurrent with the
initial investment and as part of the development work carried out by
the Company, the Company also granted access to a specific protein to
NantPro (“the Technology Access Fee”) for a non-refundable amount
of $2.5 million (US$ 2,500,000). Of this sum, $102,000 (US$100,000)
has been deferred as at December 31, 2012. The Company recognized
$815,000 (US$ 800,160) as licensing revenue, which is based on the
extent of the other investor’s interest. The balance of $1.6 million
(US$ 1,599,840) was recorded as a reduction in the carrying amount
of the investment.

As a result of the composition of NantPro’s board membership, the
manner and timing in which financing and operation decisions will
be made, and that NantWorks has the current right to make additional
capital contributions that could ultimately decrease the Company’s
investment to 10% of the equity units, the Company has determined
that it does not control the investment, but does have the ability to
exercise significant influence and will therefore account for it as an
associate. The funds will be used by NantPro to pay the Company to
carry out the development and manufacturing costs of plasma-derived
product. The additional capital contributions by NantWorks will result
in dilution gains or losses and corresponding adjustments in the
carrying value of the investment.

During the year ended December 31, 2012, the Company provided
development services to NantPro and recognized revenues from the
rendering of services of $1.5 million. As at December 31, 2012, the
Company had an account receivable from NantPro of $438,000.

February 2013, the Company finalized the terms of this secured debt,
effective December 31, 2012, moving $4 million of debt repayments to
July 2014. As consideration for the above-mentioned debt restructuring,
the Stakeholders have collectively received 1,043,476 shares in
ProMetic’ share capital and 754,715 warrants.

CAPITAL RESOURCES
The Company has no commitments for capital expenditures at the date
of the financial statements.

As mentioned earlier, PBP has been funded by third-party equity
investments. This relieves a significant capital expenditure hurdle for
ProMetic, allowing it to realize in its objectives in a very cost-effective
and non-dilutive manner. It is anticipated that PBP Inc. will become self-
sustaining through end product services and sales to ProMetic’s existing
clients. The recently announced investment by Hepalink will allow the
business to finalize the fit-out of the plant, bringing it to operational
readiness during the second half of 2013.

It is also important to note that PBL’s current manufacturing capacity
exceeds its current level of sales. At the present time, the resources are
being fully employed, but there are manufacturing batch sizes which
are below the optimal size. PBL’s current manufacturing capacity can
therefore, accommodate significant revenue growth such that there
is no linear relationship between the incremental costs and revenue
growth. Over the coming periods, it may be necessary for the Company
to invest in further capital expenditures in order to service the
requirements of some of its contracts.

LIQUIDITY
As discussed above, the Company’s December 2012 consolidated
financial statements include going concern uncertainty disclosures
in Note 1 and reference is made here to these disclosures. Significant
progress has been made in recent months in closing business deals and
securing recurring purchase orders from major biopharmaceutical
companies. These transactions improve the revenue pipeline for the
business and reduce its ultimate need for external financing. That
said, the Company is investing in its future, and as such, the revenues
generated from operations are being reinvested into strategic projects
that will drive the next stage of value creation for the Company. It may
therefore be necessary, from time-to-time, to raise additional capital at a
certain level of financing for strategic initiatives.

On January 31, 2011, the Company finalized the restructuring of
the terms of its secured debt, effective December 31, 2010, deferring
$4 million of debt repayments to July 2012. In February 2012, the
Company finalized a further restructuring of the terms of this secured
debt, effective December 31, 2011, deferring $4 million of debt
repayments to July, 2013. In addition to this extension, one of the
Stakeholders invested $1 million in equity in ProMetic. As consideration
for the above-mentioned debt reorganization and investment, the
Stakeholders have collectively received 17,439,408 shares in ProMetic’
share capital. The stakeholders also collectively received 5,714,278
warrants. In December 2012, the Company signed letters of intent with
the lenders deferring $4 million of debt repayments to July 2014. In

The arrangements discussed above to restructuring the secured
loans required the up-front payment of interest in the form of shares.
While this funding is partially dilutive, the level of dilution is minimal
in comparison to the dilution level that would have been incurred
if a straight equity investment or other more commonly available
instruments had been used to finance the Company.

Subsequent to December 31, 2012, the Company again renegotiated its
working capital grants with the Isle of Man Government Department
of Economic Development, resulting in the balance now being offset
in the future against capital grants receivable from the Isle of Man
Government with any balance owing on March 31, 2014 repayable in
cash.

During 2011, the Company secured a $500,000 loan from a company
controlled by a director of the Company. The loan bears interest at
the rate of 12% per annum and was originally due to mature on
October 31, 2011. The term has been indefinitely extended with
the permission of the lender and is payable on demand.

During the year of 2012, the Company was successful in raising equity
financing in the amount of $3.1 million in exchange of 28,499,996
shares and 6,345,451 warrants from long term shareholders and new
strategic investors. In addition, the Company entered into a loan
agreement with the Isle of Man’s Conister Bank, borrowing
$0.8 million at an interest rate of 10% per annum. The loan was
initially reimbursable in December 2012. The loan was renegotiated
and is repayable in 12 equal monthly installments over 2013.

During the third quarter of 2012, the Company entered into a
strategic investment agreement with Hepalink, consisting of a
$9.8 million equity investment in ProMetic at a price of $0.204 per
share which was at a premium to the stock market price at the time
in exchange for the issuance of 48,147,053 shares representing
approximately 10.02% of ProMetic outstanding shares on a post-
transaction basis. The issued shares are subject to a three (3) year hold
period. The investment was approved on December 31, 2012 by the
parties’ respective regulatory authorities. This particular investment
is seen as a key to unlocking the next stage in the Company’s value
creation, by allowing the business to advance the status of some if its key
assets, including bringing online its Laval-based, pilot bio-manufacturing
facility and progressing with the next phase of development of certain
of its therapeutic compounds. It also allows for a greater return to the
Company’s shareholders by limiting the need to externally finance the
launch of the Laval plasma facility and therefore retaining a greater
portion of its ownership. The $9,8 million equity investment was
received on January 7th, 2013.

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As at December 31, 2012, the cash position was $1.2 million compared
to $0.3 million as at December 31, 2011.

Current assets totaled $17.3 million as at December 31, 2012, and
$3.2 million as at December 31, 2011. Accounts receivable were
$4.8 million as at December 31, 2012, compared to $1.4 million as
at December 31, 2011. Accounts receivable consist mostly of trade
receivables related to the sale of resin, licensing agreements as well
as research and development tax credits receivable related to the
activities of the Therapeutics and the Protein Technology Units. The
current assets also include an amount of $9.8 million for the share
subscription receivable relating to the Hepalink investment in ProMetic
which was received on January 7th, 2013. The net capital assets were
at $1.1 million as at December 31, 2012 compared to $0.9 million as at
December 31, 2011.

Included in Current liabilities is an amount of $5.1 million relating to
Trade and other payables. This balance although improving, is still
high, partly as a result of the company’s cash situation, and partly due to
increased working capital requirements to service the growing revenue
stream. The recent improvements in the Company’s liquidity noted
herein are expected to improve upon this during fiscal 2013.

CONTRACTUAL OBLIGATIONS
(in thousands of dollars)

SUMMARY OF QUARTERLY RESULTS
The following unaudited information is presented in millions of
Canadian dollars except for per share amounts.

December 31

September 30

June 30

March 31

2012

Revenues

8.3

7.7

6.3

1.1

Net profit/(loss)

1.0

2.5

0.8 (4.7)

Net profit/(loss)
per share
(basic and diluted) 0.00

Weighted average
number of
outstanding shares 431

0.01

0.00

(0.01)

428

421

404

December 31

September 30

June 30

March 31

2011

Payment due by period

Revenues

8.5

3.3

3.0

2.8

Contractual
Obligations

Total

Less
than
1 year

1 - 3 years

4 – 5 years

After 5
years

Debt
Capital leases
and obligations
Operating
leases
Other
obligations

10,067

5,613

4,454

12,591

1,888

3,490

3,835

3,378

203

Net profit/(loss)

3.3

(2.1)

(1.8)

(2.7)

Net profit/(loss)
per share
(basic and diluted) 0.01

Weighted average
number of
outstanding shares 387

(0.01)

(0.00)

(0.01)

378

373

356

Total contractual
obligations

22,874

7,713

7,948

3,835

3,378

CASH FLOWS
The consolidated statement of cash flows in the consolidated financial
statements shows that cash flows used in operating activities amounted
to $2.1 million for the year ended December 31, 2012 compared with
$7.4 million for the year ended December 31, 2011. The reduction
is principally due to the non monetary licensing revenues from the
Celgene transactions in 2011. The cash inflows from financing activities
amounted to $3.7 million for the year ended December 31, 2012
compared to inflows of $8.5 million for the year ended December 31,
2011. In 2011, the Company received promissory notes for $1.0 million
from shareholders. Also in 2011, long-term debts were contracted for a
total of $1.7 million of which $0.5 million came from a shareholder, and
$1.2 million from the government of the Isle of Man. The company also
received a loan of $0.8 million from Investissement Québec and issued
shares to a non-controlling interest for a total of $1.5 million.

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FOURTH QUARTER
The following information is a summary of selected unaudited
consolidated financial information of the Company for the three-month
periods ended December 31, 2012, and 2011.

Revenues
Operating expenses
Operating profit (loss)
Gain (Loss) on foreign exchange
Loss on disposition and impairment of assets
Finance costs
Share of net profit in an associated company
Net profit
Net profit (loss) attributable to the owners
of the parent
Basic and diluted profit (loss) per share
attributable to the owners of the parent

2012
8,322
6,870
1,452
(115)
(12)
(379)
69
1,015

2011
8,423
4,735
3,688
42
(59)
(318)
-
3,355

1,036

(1,951)

0.00

0.01

Revenues for the fourth quarter of 2012 were $8.3 million, similar to
revenues of the same quarter of 2011. Operating expenses were
$6.9 million for the fourth quarter of 2012 compared to $4.7 million
in 2011. The difference is due to differing mix of products and services
sold during the fourth quarter. There were no costs of goods sold
associated with the licensing revenues.

Cash inflows from operating activities were $1.2 million compared to a
cash outflows of $0.3 million for the same period in 2011. This increase
was attributed to non monetary licensing revenues in 2011.

Cash outflows from financing activities were $0.1 million in 2012
compared to cash inflows of $1.3 million in the fourth quarter of 2011.
This is mainly attributed to the repayable government grant, the other
loan and the proceeds from the shares issued in 2011.

OFF-BALANCE SHEET ARRANGEMENTS
In the normal course of business, the Company finances certain of its
activities off-balance sheet through leases.

On an ongoing basis, the Company enters into finance leases for
buildings and equipment. Minimum future rental payments under
these operating leases, determined as at December 31, 2012 are
included in the contractual obligations table above.

One letter of credit amounting to $130,000 was issued to the lessor of our
facility in Maryland as collateral for our performance of obligations under
the leases. This letter of credit is collateralized by a guaranteed investment
certificate for the same amount. The guaranteed investment certificate
related to the letter of credit has been classified as restricted cash.

CONTINGENT LIABILITY
During the year 2012, the Company was served with a lawsuit in the
Federal Court of Canada (Court) relating to a claim for infringement
of two patents held by a third party plaintiff. The Company instructed
outside legal counsel to prepare, serve and file a statement of defense
on the infringement claims, in addition to a counterclaim requesting
that the Court declare both patents invalid and unenforceable.
Since the plaintiff has claimed unspecified damages and none of the
allegations in the claim provide any information as to the basis upon
which the plaintiff would be claiming monetary compensation and
on the basis that the Company does not believe that this claim will be
successful, the Company has not taken a provision in the consolidated
financial statements.

CRITICAL ACCOUNTING ESTIMATES
The preparation of the consolidated financial statements requires
the use of judgment, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities and the
accompanying disclosures. The uncertainty that is often inherent
in estimates and assumptions could result in outcomes that result in
material adjustments to assets or liabilities affected in future periods.

During the year ended December 31, 2012, the Company signed
revenue agreements which provided for, among other payments,
upfront payments in exchange for licenses and other access to
intellectual property. This required careful judgment whether these
payments were received in exchange for the provision of goods or
services which had stand-alone value to the customer.

In determining that the Company did not control, but had only
significant influence in the investment in an associated company
described in note 10, consideration was given to the composition of the
entity’s board of directors and the manner in which key operating and
financing decisions were to be made. Had the Company reached the
conclusion that it controlled the investment would have required that
its assets and liabilities and results of operations be consolidated with
those of the Company, along with the elimination of all inter-company
transactions.

The functional currency of foreign subsidiaries is reviewed on an
ongoing basis to assess if changes in the underlying transactions,
events and conditions have result in a change. During the year ended
December 31, 2012 and 2011, no changes were deemed necessary.
In addition, judgment is applied the treatment and amount of the
currency translation of inter-company loans in order to determine if
they form part of the parent company’s net investment in the foreign
subsidiary. This treatment results in foreign currency adjustments from
translation recorded in other comprehensive (loss) income.

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Whether an asset is impaired requires management to determine
whether there is an indication of impairment based on the
consideration of external and internal indicators. If an indication of
impairment exists, management must determine if the carrying value of
the asset exceeds its recoverable amount. The Company’s Therapeutics
segment has approximately 34% of the Company’s aggregate capital
assets and licenses and patents (2011 - 36%) for which a nominal
amount of revenue was recognized in 2012 and 2011. Supporting a
judgment that the indicators of the impairment of these assets are not
present is an assessment of detailed business plans and recent business
development activity directly related to these assets.

The Company received its previous assumptions in relation to the
useful life of its assets and concluded that no changes were required.

The fair value of the restricted stock units discussed in note 20 e) of the
December 31, 2012 consolidated financial statements is based on an
estimate of the probability of the successful achievement of a number
of performance conditions, as well as the timing of their achievement.
The final expense is only determinable when the outcome is known,
which will be in 2013. The estimated expense of $140,000 (2011 -
$113,000) recorded during the year ended December 31, 2012 is
recorded in the Corporate Segment.

As described in note 18 (b) to the December 31, 2012 consolidated
financial statements, when the terms of a loan are modified, it is
often accounted for as a derecognition of the carrying value of the
pre-modified loan and the recognition of a new loan at fair value.
In the determination of fair value, the Company uses a discounted
cash flow technique which includes inputs that are not based on
observable market data and inputs that are derived from observable
market data. In the case of its loan modifications, where available,
the Company seeks comparable interest rates. If unavailable, it uses
those rates considered appropriate for the risk profile of a company in
the industry. During the year ended December 31, 2012, the
Corporate segment recorded an extinguishment loss of $497,000
(2011 – $387,000)

RELATED PARTY TRANSACTIONS
Balances and transactions between the Company and its subsidiaries,
which are related parties of the Company, have been eliminated on
consolidation. Details of transactions between the Company and other
related parties are disclosed in the notes of the December 31, 2012
consolidated financial statements.

On December 5, 2008, the Company entered into an agreement to
provide a guarantee (the “Guarantee”) in favour of Camofi Master
LDC (“Camofi”), relating to an amended and restated loan agreement
(the “Loan”) that Camofi had provided to a company (the “borrower”)
wholly-owned by a senior officer of the Company. The Loan was
originally contracted in December 2007 for the purposes of purchasing
shares of the Company.

The Guarantee provides that the Company must be prepared to fulfill
the borrower’s obligations with respect to the full payment of capital

and interest for the Loan if the borrower is unable to do so. Any such
payment shall be made within two days of receipt of notice of default
from Camofi. Alternatively, the borrower can force Camofi to liquidate
some or all of the shares of the Company that are held as collateral to
cover the Loan. If called upon under the Guarantee, the Company may
chose either to pay in cash or request that the borrower instruct Camofi
to liquidate up to 2,300,000 shares of the Company to repay the Loan.

In conjunction with the above, the Company entered into an agreement
with the borrower providing that any payment made by the Company
under the Guarantee immediately triggers an equivalent receivable
from the borrower. This receivable bears interest at 10% per annum, is
evidenced by a demand promissory note and, upon termination of the
Loan and the pledge agreement, will be secured by 2,300,000 shares of
the Company until all payments of principal and interest owed to the
Company are made. This receivable will be recorded at fair value by the
Company only when its collectability is reasonably assured.

The Company risks losing a maximum amount of $2.3 million plus
interest and penalties, without taking into consideration the net
proceeds arising from the disposal of the 9,500,000 pledged shares of
the Company. The Company has not required any consideration in
exchange for this Guarantee.

As at December 31, 2012 and 2011, no receivable from the borrower
was recorded in the consolidated financial statements given that
collectability was not reasonably assured.

Concurrent with this settlement agreement being reached, an amended
and restated loan agreement was entered into between the borrower
and the Company requiring the borrower to fully repay the Company
no later than March 31, 2013. Furthermore, should certain stock price
thresholds be reached, the Company may require the borrower to
pay the outstanding balance of the loan. This amended and restated
loan agreement received shareholder approval at the May 5, 2010
Annual and Extraordinary Meeting of the shareholders. The said loan
is secured by a pledge in favor of the Company by the borrower of
9,500,000 shares of the Company stock. The loan is also secured by
a pledge in favor of the Company by Invhealth Capital Inc. (a wholly-
owned subsidiary of a senior officer of the Company) of all its shares
of the borrower and by a pledge in favor of the Company by the senior
officer of the Company of all of his shares of Invhealth Capital Inc. On
March 7, 2013, the Company and Invhealth Holding Inc. entered into
a Re-Amended and Restated Loan Agreement pursuant to which the
term of the loan was changed from March 31, 2013 to March 31, 2016,
subject to shareholder approval.

Included in the trade and other payables in the statement of financial
position is an amount of $46,000 due to a manager of the Company as
at December 31, 2012 ($35,000 as at December 31, 2011).

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Following a consulting agreement entered into with a director of the
Company, success fees of 5% of the relevant proceeds received by the
Corporation, for a total of $600,000 are payable to said director. As at
December 31, 2012, $500,000 remained unpaid (nil for the year ended
December 31, 2011). However, pursuant to the terms and conditions
of said consulting agreement, the Company will not be required to
pay more than $250,000 per year to said director pursuant to said
agreement. The remaining amounts owed will be paid over the coming
years and all payments will be subject to the previously mentioned
$250,000 annual cap.

FINANCIAL INSTRUMENTS
CREDIT RISK
Credit risk is the risk of financial loss to the Company if a customer,
partner or counterparty to a financial instrument fails to meet its
contractual obligations and arises principally from the Company’s
cash, investments, receivables and share purchase loan to an officer.
The carrying amount of the financial assets represents the maximum
credit exposure. The financial instruments that potentially expose the
Company to credit risk are primarily cash, restricted cash and trade
accounts receivables. The Company invests its cash in high quality
commercial paper issued by government agencies and financial
institutions and diversifies its investments in order to limit its exposure
to credit risk, while following approved investment guidelines. The
Company reviews a new customer’s credit history before extending
credit and conducts regular reviews of its existing customers’ credit
performance.

LIQUIDITY RISK
Liquidity risk is the risk that the Company will not be able to meet its
financial obligations as they come due. Given the Company’s current
revenue expectations there is significant uncertainty as whether it
will have sufficient working capital to fund its current operating and
working capital requirements for the next 12 months. To the extent
that the Company does not believe it has sufficient liquidity to meet
its current obligations, the Management considers securing additional
funds through equity, debt or partnering transactions. The Company
manages its liquidity risk by continuously monitoring forecasts and
actual cash flows. Accounts payable and accrued liabilities are due
within the current operating period.

MARKET RISK
Market risk is the risk that changes in market prices, such as interest
rates and foreign exchange rates will affect the Company’s income or
the value of its financial instruments.

Interest Risk
The majority of the Company’s debt is at a fixed rate. There is limited
exposure to interest rate risk.

Foreign Exchange Risk
The Company is exposed to the financial risk related to the fluctuation
of foreign exchange rates. The Company operates in the United
Kingdom and in the U.S. and a portion of its expenses incurred and
revenues generated are in US dollar and in pound sterling. Financial
instruments potentially exposing the Company to foreign exchange risk
consist principally of cash, receivables, accounts payable and accrued
liabilities and long-term debt. The Company manages its foreign
exchange risk by holding foreign currencies to support forecasted cash
outflows in foreign currencies. The majority of the Company’s revenues
are in US dollars and in pound sterling which mitigates foreign
exchange risk.

RISK FACTORS
For a more detailed discussion of risk factors which could impact the
Company’s results of operations and financial position, please refer to
its Annual Information Form filed on www.sedar.com

OVERSIGHT OF RELIABILITY OF DISCLOSURES
DISCLOSURE CONTROLS AND PROCEDURES
The Company’s Chief Executive Officer, as of March 25, 2013, and its
Chief Financial Officer are responsible for establishing and maintaining
the Company’s disclosure controls and procedures. They are assisted
in this responsibility by the other Officers of the Company. This group
requires that it be fully appraised of any material information affecting
the Company so that it may evaluate and discuss this information and
determine the appropriateness and timing of public release.

The Chief Executive Officer and the Chief Financial Officer, after
evaluating the effectiveness of the Company’s disclosure controls
and procedures as at December 31, 2012, have concluded that the
Company’s disclosure controls and procedures are adequate and
effective to ensure that material information relating to the Company
and its subsidiaries would have been known to them.

INTERNAL CONTROL OVER FINANCIAL REPORTING
Internal control over financial reporting (“ICFRs”) are designed to
provide reasonable assurance regarding the reliability of the Company’s
financial reporting and compliance with IFRS in its financial statements.
The Company’s Chief Executive Officer and Chief Financial Officer,
together with other members of management have designed and
evaluated the ICFRs to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with IFRS. This
design evaluation included documentation activities, management
inquiries and other reviews as deemed appropriate by management in
consideration of the size and the nature of the Company’s business.
As at December 31, 2012, management assessed the effectiveness of
the Company’s ICFRs and, based on that assessment, concluded that
the Company’s ICFRs was effective and that there were no material
weaknesses in our ICFRs.

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ANNUAL CONSOLIDATED FINANCIAL STATEMENTS OF PROMETIC LIFE SCIENCES INC.
For the years ended December 31, 2012 and 2011

INDEPENDENT AUDITORS’ REPORT
TO THE SHAREHOLDERS OF PROMETIC LIFE SCIENCES INC.
We have audited the accompanying consolidated financial statements of ProMetic Life Sciences Inc. (the “Company”), which comprise the
consolidated statements of financial position as at December 31, 2012 and 2011, and the consolidated statements of operations and comprehensive
loss, changes in shareholders’ equity (deficiency) and cash flows for the years then ended, and a summary of significant accounting policies and other
explanatory information.

MANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International
Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.

AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with
Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audits to
obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The
procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation
and fair presentation of the consolidated financial statements 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 control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.

OPINION
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of ProMetic Life Sciences Inc. as at
December 31, 2012 and 2011, and its financial performance and its cash flows for the years then ended in accordance with International Financial
Reporting Standards.

EMPHASIS OF MATTER
Without qualifying our opinion, we draw attention to note 1 in the consolidated financial statements which indicates that the Company incurred a
net loss of $424,000 during the year ended December 31, 2012 and as of that date, the Company had an accumulated deficit of $246,470,000. These
conditions, along with other matters as set forth in note 1, indicate the existence of a material uncertainty that may cast doubt on the Company’s ability
to continue as a going concern.

Montreal, Canada
March 25, 2013

1 CPA auditor, CA public accountancy permit no. A120254

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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(See governing statutes, nature of operations and going concern uncertainty - note 1)
(In thousands of Canadian dollars)

As at
December 31,
2012

As at
December 31,
2011

ASSETS (note 18)
Current assets
Cash
Accounts receivable (note 6)
Share subscription receivable (note 20)
Inventories (note 7)
Prepaid expenses

Restricted cash (note 8)
Other investment (note 9)
Investment in an associated company (note 10)
Capital assets (note 11)
Licenses and patents (note 12)

LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIENCY)
Current liabilities

Bank loan and other loan (note 13)
Trade and other payables (note 14)
Promissory notes from shareholders (note 15)
Deferred revenues (note 16)
Repayable government grants and finance lease obligations (note 17)
Current portion of long-term debt provided by shareholders (note 18)
Current portion of advance on revenues from a supply agreement (note 19)

Long-term portion of lease inducement
Long-term portion of government grant and finance lease obligations (note 17)
Long-term debt provided by shareholders (note 18)
Advance on revenues from a supply agreement (note 19)

SHAREHOLDERS’ EQUITY (DEFICIENCY)
Share capital (note 20)
Share capital to be issued (note 20 a)
Contributed surplus
Future investment rights
Accumulated other comprehensive income
Deficit
Equity (deficiency) attributable to owners of the parent
Non-controlling interests

1,205
4,750
9,822
1,238
303
17,318

198
27
69
1,127
4,252
22,991

1,636
5,094
250
2,355
560
600
2,576
13,071

226
4
3,417
454
17,172

224,741
9,822
11,762
6,542
207
(246,470 )
6,604
(785 )
5,819
22,991

The accompanying notes are an integral part of the consolidated financial statements.

Commitments (note 24)
Contingencies (note 31)
Subsequent events (note 32)

On behalf of the Board

Director

275
1,438
-
1,243
228
3,184

233
27
-
928
4,320
8,692

752
7,091
817
447
733
750
1,223
11,813

183
13
3,411
1,840
17,260

220,777
-
10,132
6,542
159
(246,051 )
(8,441 )
(127 )
(8,568 )
8,692

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(See governing statutes, nature of operations and going concern uncertainty - note 1)
(In thousands of Canadian dollars except for per share amounts)

Revenues (note 5)

Expenses

Costs of goods sold
Research and development expenses rechargeable
Research and development expenses non-rechargeable
Administration and marketing expenses
Loss on foreign exchange
Impairment of licenses and patents
Impairment of other investment (note 9)
Loss on extinguishment of debt (note 18)
Finance costs (note 23)
Share of net profit of an associated company (note 10)
Net loss

Other comprehensive loss

Change in unrealized exchange differences on translation of financial
statements of foreign subsidiaries
Total comprehensive loss

Net loss attributable to:

Owners of the parent
Non-controlling interests

Total comprehensive loss attributable to:

Owners of the parent
Non-controlling interests

Earnings (Loss) per share
Basic and diluted earnings (loss) per share attributable to the owners
of the parent
Weighted average number of outstanding shares (in thousands)
For supplemental operations information, see note 23
The accompanying notes are an integral part of the consolidated financial statements.

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Years ended December 31,
2011

2012

$23,321

$17,589

5,326
2,647
7,663
5,966
116
49
-
497
1,483
(2)
($424)

1,854
1,351
9,879
5,789
140
68
25
387
1,363
-
($3,267)

48
($376)

(96)
($3,363)

234
(658)
($424)

$282
(658)
($376)

($2,554)
(713)
($3,267)

($2,650)
(713)
($3,363)

$0.00
421,073

($0.01)
373,635

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIENCY)
(See governing statutes, nature of operations and going concern uncertainty - note 1)
(In thousands of Canadian dollars)

Contributed Surplus

Share
Stock-based
capital compensation Warrants

Foreign
currency
translation
reserve

Future
investment
rights

Non-
controlling

Total
interets deficiency

Deficit

Total

Balance at January 1st, 2011

215,266

2,400

6,422

255

6,542

(243,438)

(12,553)

(914)

(13,467)

Loss for the year
Issuance of shares to
non-controlling interest
Foreign currency translation reserve
Share issue expenses
Stock-based compensation
Issuance of shares (note 20 a)
Issuance of warrants

-
-
-
-
5,511
-

-
-
-
311
-
-

-
-
-
-
-
999

-
(96)
-
-
-
-

-
-
-
-
-
-

(2,554)

(713)

(3,267)

-
-
(59)
-
-
-

-
(96)
(59)
311
5,511
999

1,500
-
-
-
-
-

1,500
(96)
(59)
311
5,511
999

Balance at December 31, 2011

220,777

2,711

7,421

159

6,542

(246,051)

(8,441)

(127)

(8,568)

-
Loss for the year
-
Foreign currency translation reserve
-
Share issue expenses
-
Stock-based compensation
Issuance of shares (note 20 a)
3,964
Share capital to be issued (note 20 a) 9,822
-
Issuance of warrants

-
-
-
505
-
-
-

-
-
-
-
(56)
-
1,181

-
48
-
-
-
-
-

-
-
-
-
-
-
-

234
-
(653)
-
-
-
-

234
48
(653)
505
3,908
9,822
1,181

(658)
-
-
-
-
-
-

(424)
48
(653)
505
3,908
9,822
1,181

Balance at December 31, 2012
The accompanying notes are an integral part of the consolidated financial statements.

234,563

3,216

8,546

207

6,542

(246,470)

6,604

(785)

5,819

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CONSOLIDATED STATEMENTS OF CASH FLOWS
(See governing statutes, nature of operations and going concern uncertainty - note 1)
(In thousands of Canadian dollars)

Cash flows used in operating activities
Net loss
Adjustments to reconcile net loss to cash flows
used in operating activities
Expenses paid with shares
Finance costs
Share of net profit in an associated company
Impairment of licenses and patents
Loss on disposal of capital assets
Licensing revenues
Impairment of an investment
Finance lease
Loss on extinguishment of debt
Stock-based compensation
Advance on revenues from a supply agreement
Unrealized foreign exchange loss (gain)
Depreciation of capital assets
Amortization of license and patents

Change in working capital items (note 28)

Cash flows from financing activities
Proceeds from share and warrant issuance
Shares issued to non-controlling interest
Share issue expenses
Interest paid
Promissory notes from shareholders
Issuance of bank and other loans
Issuance of a repayable government grant
Issuance of a long-term debt provided by a shareholder
Repayment of promissory notes from shareholders
Repayment of a repayable government grant and finance leases
Repayment of other loan
Repayment of the advance on revenues from a supply agreement

Cash flows used in investing activities
Disposal of an investment
Additions to capital assets
Additions to licenses and patents

Net change in cash during the year
Net effect of currency exchange rate on cash
Cash, beginning of the year
Cash, end of the year
For supplemental cash flow information, see note 28

The accompanying notes are an integral part of the consolidated financial statements.

Years ended December 31,

2012

$(424)

45
704
(2)
49
2
(474)
-
-
497
505
133
2
301
478
1,816
(3,949)
(2,133)

3,270
-
(122)
286
100
884
-
-
(260)
(226)
-
(238)
3,694

35
(487)
(267)
(719)

842
88
275
$1,205

2011

$(3,267)

216
841
-
68
-
(10,003)
25
25
387
311
143
(14)
322
436
(10,510)
3,148
(7,362)

4,827
1,500
(59)
107
997
752
1,162
500
(180)
(462)
(652)
-
8,492

-
(371)
(655)
(1 026)

104
(81)
252
$275

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2012 and 2011
(in thousands of Canadian dollars, except share and per share amounts or as otherwise specified)

1. GOVERNING STATUTES, NATURE OF OPERATIONS AND GOING CONCERN UNCERTAINTY

ProMetic Life Sciences Inc. (“ProMetic” or the “Company”), incorporated under the Canada Business Corporations Act, is an international
biopharmaceutical company engaged in the research, development, manufacturing and marketing of a variety of applications developed from its
own exclusive technology platform. The Company owns proprietary technology essential for use in the large-scale purification of drugs, genomics
and proteomics products as well as medical and therapeutic applications. The Company’s head office is located in Laval, Québec, Canada.

These consolidated financial statements have been prepared on the basis of the going concern assumption, which assumes that the Company
will realize its assets and discharge its liabilities in the normal course of business. The use of these principles may not be appropriate because,
as at December 31, 2012, there is significant doubt that the Company will be able to continue as a going concern without achieving profitable
operations or raising additional financial resources. Since inception, the Company has incurred losses and has an accumulated deficit of $246,470
as at December 31, 2012. To date, the Company has financed its activities through collaboration and licensing agreements, bank loans, government
financial support, investment tax credits and the issuance of debt and equity. Subsequent to December 31, 2012, the Company received the
share subscription receivable of $9,822 from a strategic equity investment with Shenzhen Hepalink Pharmaceuticals Co. Ltd. (see note 20) and
completed the renegotiation of the repayment terms of $4,000 of the long-term debt provided by shareholders (note 15). While this provides
improvement in the Company’s near-term liquidity, the Company’s committed cash obligations and expected level of expenditures for the next 12
months exceed its committed sources of funds.

The Company’s ability to continue as a going concern is dependent upon its ability to obtain the ongoing support of its lenders and the continued
activity of its core business including the advancement of collaboration and licensing agreements for pipeline projects, and raising additional
financing either from the issuance of shares or long-term debt on acceptable commercial terms. There can be no assurance of the success of the
Company’s operations, on its plans to achieve profitability, nor on its access to further financing which may be required to execute these plans.

These consolidated financial statements do not reflect the adjustments that might be necessary to the carrying amount of reported assets, liabilities
and revenues and expenses and the consolidated statement of financial position classification used if the Company were unable to continue
operations in accordance with the going concern assumption. Such adjustments could be material.

2. SIGNIFICANT ACCOUNTING POLICIES

a) Statement of compliance

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued
by the International Accounting Standards Board (“IASB”) and were authorized for issue by the Board of Directors on March 25, 2013.

b) Basis of measurement

The consolidated financial statements have been prepared on a historical cost basis, except for cash and restricted cash, which have been
measured at fair value.

c) Functional and presentation currency

The consolidated financial statements are presented in Canadian dollars, which is also the parent Company’s functional currency.

d) Basis of consolidation

The consolidated financial statements include the accounts of ProMetic Life Sciences Inc., and those of its subsidiaries ProMetic BioSciences
Inc., ProMetic BioProduction Inc. (also referred to as “Newco”), ProMetic BioSciences (USA), Inc., ProMetic BioSciences Ltd., ProMetic
BioTherapeutics Inc., ProMetic BioTherapeutics Ltd., ProMetic Manufacturing Inc., BSafE Inc. and Pathogen Removal and Diagnostic
Technologies Inc. (hereinafter referred to as “PRDT”). The financial statements of the subsidiaries are prepared for the same reporting period
as the parent company, using consistent accounting policies. All intra-group transactions, balances, income and expenses are eliminated in full
upon consolidation.

e) Investment in an associated company

The Company’s investment in its associate, NantPro BioSciences, LLC (“NantPro”) is accounted for using the equity method. An associate is an
entity in which the Company has significant influence. Under the equity method, the investment in the associate is carried on the consolidated
statement of financial position at cost plus post acquisition changes in the Company’s share of net assets of the associate.

The consolidated statement of operations and comprehensive loss reflects the Company’s share of the results of operations of the associate.
When there has been a change recognised directly in the equity of the associate, the Company recognises its share of any changes and
discloses this, when applicable, in the consolidated statement of changes in shareholder’s equity (deficiency). Profits and losses resulting
from transactions between the Company and the associate are recognized in the Company’s consolidated financial statements only to
the extent of unrelated investors’ interests in the associate.

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After application of the equity method, the Company determines whether it is necessary to recognise an additional impairment loss on its
investment in its associate. The Company determines at each reporting date whether there is any objective evidence that the investment in
the associate is impaired. If this is the case, the Company calculates the amount of impairment as the difference between the recoverable
amount of the associate and its carrying value and recognises the amount in the ‘share of profit of an associate’ in the consolidated statement
of operations.

Upon loss of significant influence over the associate, the Company measures and recognises any retaining investment at its fair value. Any
difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retained investment and
proceeds from disposal is recognised in profit or loss.

f) Financial instruments

The classification and measurement of the Company’s financial instruments are as follows:

Financial assets at fair value through profit and loss
Cash and restricted cash are respectively classified and designated as financial assets at fair value through profit and loss. They are measured at
fair value and changes in fair value are recognized in the consolidated statements of operations and comprehensive loss.

Loans and receivables
Accounts receivable and share subscription receivable, excluding tax credits receivable and sales taxes receivable, are classified as loans and
receivables. They are initially recognized at fair value and subsequently carried at amortized cost using the effective interest method.

Available-for-sale assets
The convertible preferred shares of AM-Pharma Holding B.V., a private company, are classified as available-for-sale and are measured at cost.

Financial liabilities
Bank and other loans, trade and other payables, promissory notes from shareholders, repayable government grants and advance on revenues
from a supply agreement are classified as other financial liabilities. They are measured at amortized cost using the effective interest method.

Long-term debt provided by shareholders, finance leases obligations and advance on revenues from a supply agreement are classified as other
financial liabilities. They are measured at amortized cost, using the effective interest method. Financing costs are applied against long-term
debt.

Impairment of investments
When, in management’s opinion, there has been a significant or prolonged decline in value of an investment, the investment is written down to
recognize the loss. In determining the estimated realizable value of its investment, management relies on its judgment and knowledge of each
investment as well as on assumptions about general business and economic conditions that prevail or are expected to prevail.

g) Inventories

Inventories of raw materials, work in progress and finished goods are valued at the lower of cost and net realizable value. Cost is determined
on a first in, first out basis.

h) Capital assets

Capital assets are recorded at cost less any government assistance, accumulated depreciation and accumulated impairment losses, if any.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as described below.

Asset

Leasehold improvements
Equipment and tools

Office equipment and furniture

Computer equipment

Rate/period
Lease term of 2.5 to 15 years
5 and 10 years
5 years
5 years

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any

changes in estimates accounted for on a prospective basis.

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The gain or loss arising on the disposal or retirement of a capital asset is determined as the difference between the sales proceeds and its
carrying amount and is recognized in profit or loss.

i) Government assistance

Government assistance programs, including investment tax credits on research and development expenses, are reflected as reductions to
the cost of the assets or to the expenses to which they relate and are recognized when there is reasonable assurance that the assistance will be
received and all attached conditions are complied with.

Where government assistance is received in the form of a repayable working capital grant, it is recorded as a liability.

j) Licenses and patents

Licenses and patents were acquired separately and include acquired rights as well as licensing fees for product manufacturing and marketing.
They are carried at cost less accumulated amortization. Amortization is calculated over the estimated useful lives of the licenses and patents
acquired using the straight-line method over a period of 12-20 years and are assessed for impairment at each reporting date when there are
indicators of impairment present. The estimated useful lives and amortization method are reviewed at the end of each reporting period, with
the effect of any changes in estimates being accounted for on a prospective basis. The amortization expense is recognized in the consolidated
statements of operations and comprehensive loss in the expense category consistent with the function of the intangible assets.

Expenditure on research activities is recognized as an expense in the period during which it is incurred.

An internally generated intangible asset arising from development (or from the development phase of an internal project) is recognized if,
and only if, all of the following have been demonstrated:

• the technical feasibility of completing the intangible asset so that it will be available for use or sale;

• the intention to complete the intangible asset and use or sell it;

• the ability to use or sell the intangible asset;

• how the intangible asset will generate probable future economic benefits;

• the availability of adequate technical, financial and other resources to complete the development and to use or
sell the intangible asset; and

• The ability to measure reliably the expenditure attributable to the intangible asset during its development.

To date, the Company has not deferred any development costs.

k) Impairment of tangible and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether
there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset
is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an
individual asset, the Company estimates the recoverable amount of the cash-generating unit (CGU) (i.e. the smallest identifiable group of
assets that generates cash inflows that are largely independent of the cash inflows from other assets, groups of assets or CGUs) to which the
asset belongs. Where a reasonable and consistent basis of allocation can be identified, the corporate assets are also allocated to individual CGUs,
or otherwise they are allocated to the smallest group of CGUs for which a reasonable and consistent allocation basis can be identified.

The recoverable amount is the higher of the fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset for which the estimates of future cash flows have not been adjusted.

An impairment loss is recognized when the carrying amount of an asset or a CGU exceeds its recoverable amount by the amount of this excess.
An impairment loss is recognized immediately in profit or loss in the period during which the loss is incurred. Where an impairment loss
subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount; on reversal of an
impairment loss, the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment
loss been recognized for the asset or CGU in prior periods. A reversal of an impairment loss is recognized immediately in profit or loss.

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l) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns and other
similar allowances.

The Company earns revenues from research and development services, license fees and sale of goods, which may include multiple elements.
The individual elements of each agreement are divided into separate units of accounting, if certain criteria are met. The applicable revenue
recognition method is then applied to each unit. Otherwise, the applicable revenue recognition criteria are applied to combined elements as a
single unit of accounting.

Rendering of services
Revenues from research and development services are recognized using the proportional performance method. Under this method, revenues
are recognized proportionally with the degree of completion of the services under the contract when it is probable that the economic benefits
will flow to the Company and revenue and costs associated with the transaction can be measured reliably.

Licensing fees
Certain license fees are comprised of up-front fees and milestone payments. Up-front fees are recognized over the estimated term during which
the Company maintains substantive obligations. Milestone payments are recognized as revenue when the milestone is achieved, customer
acceptance is obtained and the customer is obligated to make performance payments. Certain license arrangements require no continuing
involvement by the Company. Non-refundable license fees are recognized as revenue when the Company has no further involvement or
obligation to perform under the arrangement, the fee is fixed or determinable and collection of the amount is reasonably assured.

Sale of goods
Revenue from the sale of goods is recognized when all the following conditions are satisfied:

• The Company has transferred to the buyer the significant risks and rewards of ownership of the goods;

• The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control
over the goods sold;

• The amount of revenue can be measured reliably;

• It is probable that the economic benefits associated with the transaction will flow to the entity; and;

• The costs incurred or to be incurred in respect of the transaction can be measured reliably.

Amounts received in advance of meeting the revenue recognition criteria are recorded as deferred revenue on the consolidated statements of
financial position.

m) Foreign currency translation

The Company’s consolidated financial statements are presented in Canadian dollars, which is also the parent company’s functional currency.
Each of the Company’s entities determines its own functional currency and items included in the financial statements of each entity are
measured using that functional currency.

i) Transactions and balances
Transactions in foreign currencies are initially recorded by the Company and its entities at their respective functional currency rates prevailing
at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency spot
rate of exchange ruling at the reporting date. All differences are taken to the consolidated statements of operations and comprehensive loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of
the initial transactions.

ii) Group companies
The assets and liabilities of foreign operations are translated into Canadian dollars at the rate of exchange prevailing at the reporting date
and their statements of operations are translated at exchange rates prevailing at the dates of the transactions. The exchange differences
arising on the translation are recognised in other comprehensive income (loss). On disposal of a foreign operation, the component of other
comprehensive income (loss) relating to that particular foreign operation is recognised in the consolidated statement of operations and
comprehensive loss.

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n) Income taxes

The Company uses the liability method of accounting for income taxes. Deferred income tax assets and liabilities are recognized in the
consolidated statement of financial position for the future tax consequences attributable to differences between the consolidated financial
statements carrying values of existing assets and liabilities and their respective income tax bases. Deferred income tax assets and liabilities are
measured using income tax rates expected to apply when the assets are realized or the liabilities are settled. The effect of a change in income
tax rates is recognized in the year during which these rates change. Deferred income tax assets are recognized to the extent that it is probable
that future tax profits will allow the future tax assets to be recovered.

o) Share-based payments

The Company has a stock-based compensation plan and applies the fair value method. The fair value of stock options granted is determined
at the appropriate measurement date using the Black-Scholes option pricing model, and is generally expensed over the vesting period of
the options. Awards with graded vesting are considered to be multiple awards for fair value measurement and stock-based compensation
calculation. In determining the expense, the Company deducts the number of awards that are expected to be forfeited at the time of grant
and revises this estimate, if necessary, in subsequent years if actual forfeitures differ from those estimates. The Company’s policy is to issue new
shares upon the exercise of stock options.

p) Share issue expenses

The Company records share issue expenses as an increase to the deficit.

q) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that takes a substantial period of time to get ready
for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are recognized in profit or loss in
the period during which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of
funds. No borrowing costs have been capitalized by the Company as there are no assets which take a substantial period of time to get ready for
their intended use or sale.

3. SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATION UNCERTAINTY

The preparation of these consolidated financial statements requires the use of judgments, estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities and the accompanying disclosures. The uncertainty that is often inherent in estimates and
assumptions could result in material adjustments to assets or liabilities affected in future periods.

Significant judgments

Revenue recognition

During the year ended December 31, 2012, the Company signed revenue agreements which provided, among other payments, upfront payments
in exchange for licenses and other access to intellectual property. This required careful judgment to assess whether these payments were received
in exchange for the provision of goods or services which had stand-alone value to the customer.

Consolidated financial statements
In determining that the Company did not control, but had only significant influence in the investment in an associated company described in note
10, consideration was given to the composition of the entity’s board of directors and the manner in which key operating and financing decisions
will be made. A conclusion that the Company controlled the investment would have required that its assets and liabilities and results of operations
be consolidated with those of the Company, along with the elimination of all inter-company transactions.

Functional currency
The functional currency of foreign subsidiaries is reviewed on an ongoing basis to assess if changes in the underlying transactions, events and
conditions have resulted in a change. During the year ended December 31, 2012, no changes were deemed necessary. In addition, judgment
is applied the treatment and amount of the currency translation of inter-company loans in order to determine if they form part of the parent
company’s net investment in the foreign subsidiary. This treatment results in foreign currency adjustments from translation recorded in other
comprehensive (loss) income.

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Impairment of tangible and intangible assets

Whether an asset is impaired requires management to determine whether there is an indication of impairment based on the consideration of

external and internal indicators. If an indication of impairment exists, management must determine if the carrying value of the asset exceeds its
recoverable amount.

The Company’s Therapeutics segment has approximately 34% of the Company’s aggregate capital assets and licenses and patents (2011 - 36%) for
which a nominal amount of revenue was recognized in 2012 and 2011. Supporting a judgment that the indicators of the impairment of these assets
are not present is an assessment of detailed business plans and recent business development activity directly related to these assets.

The Company rewiewed its previous assumptions in relation to the useful life of its assets and concluded that no changes were incurred.

Estimates and assumptions

Fair value of restricted stock units
The fair value of the restricted stock units discussed in note 20 e) based on an estimation of the probability of the successful achievement of a
number of performance conditions, as well as the timing of their achievement. The final expense is only determinable when the outcome will be
known, which will be in 2013.

Accounting for loan modifications
As described in note 18 (b), when the terms of a loan are modified, it is often accounted for as a derecognition of the carrying value of the
pre-modified loan and the recognition of a new loan at fair value. In the determination of fair value, the Company uses a discounted cash flow
technique which includes inputs that are not based on observable market data and inputs that are derived from observable market data. In the
case of its loan modifications, where available, the Company seeks comparable interest rates. If unavailable, it uses those considered appropriate
for the risk profile of a company in the industry.

4. STANDARDS ISSUED BUT NOT YET EFFECTIVE

Standards issued but not yet effective up to the date of issuance of the Company’s financial statements are listed below. This listing of standards and
interpretations issued are those that the Company reasonably expects to have an impact on disclosures, financial position or performance when
applied at a future date. The Company intends to adopt these standards when they become effective.

IAS 1 Financial Statement Presentation – Presentation of Items of Other Comprehensive Income (OCI)
The amendments to IAS 1 change the grouping of items presented in OCI. Items that could be reclassified (or ‘recycled’) to profit or loss at a
future point in time (for example, upon derecognition or settlement) would be presented separately from items that will never be reclassified. The
amendment becomes effective for annual periods beginning on or after July 1, 2012. The Company is currently evaluating the potential impact of
this new standard.

IFRS 9 Financial Instruments: Classification and Measurement
IFRS 9 as issued reflects the first phase of the IASB’s work on the replacement of IAS 39, “Financial Instruments: Recognition and Measurement”
and applies to classification and measurement of financial assets and financial liabilities as defined in IAS 39. The standard is effective for annual
periods beginning on or after January 1, 2015. In subsequent phases, the IASB will address hedge accounting and impairment of financial assets.
The Company is currently evaluating the potential impact of this new standard.

IFRS 10 Consolidated Financial Statements
IFRS 10 replaces the portion of IAS 27, “Consolidated and Separate Financial Statements”, that addresses the accounting for consolidated financial
statements. It also includes the issues raised in SIC-12, “Consolidation - Special Purpose Entities”. IFRS 10 establishes a single control model that
applies to all entities including special purpose entities. The changes introduced by IFRS 10 will require management to exercise significant
judgment to determine which entities are controlled, and therefore, are required to be consolidated by a parent, compared with the requirements
that were in IAS 27. This standard becomes effective for annual periods beginning on or after January 1, 2013. The Company is currently evaluating
the potential impact of this new standard.

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IFRS 12 Disclosure of Involvement with Other Entities
IFRS 12 includes all of the disclosures that were previously in IAS 27 related to consolidated financial statements, as well as all of the disclosures
that were previously included in IAS 31, “Interests in Joint Ventures” and IAS 28, “Investments in Associates”. These disclosures relate to an entity’s
interests in subsidiaries, joint arrangements, associates and structured entities. A number of new disclosures are also required. This standard
becomes effective for annual periods beginning on or after January 1, 2013. The Company is currently evaluating the potential impact of this new
standard.

IFRS 13 Fair Value Measurement
IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements. IFRS 13 does not change when an entity is required
to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. This standard
becomes effective for annual periods beginning on or after January 1, 2013. The Company is currently evaluating the potential impact of this new
standard.

5. REVENUES

Year ended
December 31, 2012

Year ended
December 31, 2011

Revenues from the sale of goods
Revenues from the rendering of services
Licensing revenues

See note 29 for an analysis of revenues by major products and services.

6. ACCOUNTS RECEIVABLE

Trade
Tax credits receivable (note 13)
Sales taxes receivable
Other

7. INVENTORIES

Raw materials
Work in progress and finished goods

$ 11,548
5,343
6,430

23,321

2012

$ 2,622
1,893
149
86

$ 4,750

2012

$
730
508

$ 1,238

$ 5,198
2,388
10,003

17,589

2011

$
207
1,102
87
42

$ 1,438

2011

$
611
632

$ 1,243

During the year ended December 31, 2012, total inventories in the amount of $ 5,326 ($1,854 for the year ended December 31, 2011) were

recognized as cost of goods sold.

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RESTRICTED CASH
The restricted cash is composed of a guaranteed investment certificate, bearing interest at 0.35% per annum (two guaranteed investment
certificates at December 31, 2011, bearing interest at 1.0% and 0.25%, respectively), pledged as collateral for a letter of credit to a landlord in the
amount of $130 as at December 31, 2012 ($168 as at December 31, 2011 for two letters of credit), which automatically renews until the end of the
lease. Restricted cash also includes a Grant Treasury Deposit for a total of $68 as at December 31, 2012 ($65 as at December 31, 2011), pledged in
favour of the Isle of Man government for grants received.

9. OTHER INVESTMENT

The investment is composed of convertible preferred shares of AM-Pharma Holding B.V., a private company based in the Netherlands. During the
year ended December 31, 2012, no impairment was recorded to the investment ($25 for the year ended December 31, 2011).

10. INVESTMENT IN AN ASSOCIATED COMPANY
On June 29, 2012, the Company and an unrelated partner established an entity, NantPro BioSciences, LLC (“NantPro”) for the purposes of

developing and commercialising a plasma-derived biopharmaceutical product for the US market.

At inception, in exchange for 66.66% of the equity units in NantPro, the Company contributed a license to certain of its intellectual property. The
other investor in NantPro, NantWorks LLC (“NantWorks”), contributed $2,548 (US$ 2,500,000) in exchange for 33.33% of the equity units. The
Company measured the initial cost of its investment in NantPro based on the implied fair value of its contribution to the extent attributable to the
other investor. Consequently, the initial cost of the investment amounted to $1,699 (US$1,667,000), with a corresponding recognition of licensing
revenue. Concurrent with the initial investment, the Company also granted access to a specific protein to NantPro (the “Technology Access Fee”) for
a non-refundable amount of $2,549 (US$ 2,500,000). Of this sum, $102 (US$ 100,000) has been deferred as at December 31,2012. The Company
recognized $815 (US$ 800,160) as licensing revenue, which is based on the extent of the other investor’s interest. The balance of $1,632
(US$ 1,599,840) was recorded as a reduction in the carrying amount of the investment.

As a result of the composition of Nantpro’s board membership, the manner and timing in which substantive financing and operation decisions
will be made, and that NantWorks has the current right to make additional capital contributions that could ultimately decrease the Company’s
investment to 10% of the equity units. The Company has determined that it does not control the investment, but does have the ability to exercise
significant influence and will therefore account for it as an associate. The contributions will be used by NantPro to pay the Company to carry out
the development and manufacturing costs of a plasma-derived product. The additional capital contributions by NantWorks will result in dilution
gains or losses and corresponding adjustments in the carrying value of the investment.

During the year ended December 31, 2012, the Company provided development services to NantPro and recognized revenues from the rendering

of services of $1,549. As at December 31, 2012, the Company had a balance receivable from NantPro of $438.

The unaudited summarized financial information of NantPro as at December 31, 2012 is as follows:

Current assets
Non-current assets
Current liabilities

Non-current liabilities

Equity

$86
7,375

-
-

7,461

The Company’s share of NantPro’s loss and other adjustments to the carrying amount of its investment for the year ended December 31, 2012 are
as follows:

Carrying amount of the investment - January 1
Initial investment
Activity during the year:
Share of net losses
Net dilution gains
Share of net profit of an associated company
Carrying amount of the investment - December 31

2012

-
$67

(952)
954
2
69

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11. CAPITAL ASSETS

Leasehold
improvements

Equipment
and tools

Office equipment
and furniture

Computer
Equipment

Cost

Balance at January 1, 2011
Additions
Disposals

Effect of foreign exchange differences

Balance at December 31, 2011
Additions
Disposals

Effect of foreign exchange differences

2,168
224
(29)
36

2,399
-
(5)
47

3,227
63
(87)
27

3,230
461
-
43

Balance at December 31, 2012

2,441

3,734

Depreciation and impairment losses

Balance at January 1, 2011
Depreciation charge for the year
Disposals

Effect of foreign exchange differences

Balance at December 31, 2011
Depreciation charge for the year
Disposals

Effect of foreign exchange differences

Balance at December 31, 2012

Carrying amounts

At December 31, 2011
At December 31, 2012

2,087
59
(29)
35

2,152
62
(5)
47

2,256

2,640
129
(87)
32

2,714
182
-
32

2,928

247
185

516
806

512
71
(19)
2

566
6
-
4

576

423
77
(19)
2

483
22
-
4

509

83
67

Total

6,584
371
(158)
72

6,869
491
(32)
99

677
13
(23)
7

674
24
(27)
5

676

7,427

551
57
(23)
7

592
35
(25)
5

607

5,701
322
(158)
76

5,941
301
(30)
88

6,300

82
69

928
1,127

During the year ended December 31, 2012, the Company recorded a loss on disposal of capital assets of $2 (nil for the year ended December 31, 2011).

The unpaid capital assets as at December 31, 2012 was $4 (nil for the year ended December 31, 2011).

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12. LICENSES AND PATENTS

Cost
Balance at January 1, 2011
Additions
Impairment
Effect of foreign exchange differences

Balance at December 31, 2011
Additions
Impairment
Effect of foreign exchange differences

Balance at December 31, 2012

Accumulated amortization and impairment

Balance at January 1, 2011
Amortization expense
Impairment
Effect of foreign exchange differences

Balance at December 31, 2011
Amortization expense
Impairment
Effect of foreign exchange differences

Balance at December 31, 2012

Carrying amounts

At December 31, 2011
At December 31, 2012

Licenses
$

Patents
$

3,831
-
-
9

3,840
-
-
10

3,850

2,228
231
-
3

2,462
231
-
5

2,698

1,378
1,152

3,118
655
(83)
32

3,722
420
(63)
44

4,123

585
205
(15)
5

780
247
(14)
10

1,023

2,942
3,100

Total
$

6,949
655
(83)
41

7,562
420
(63)
54

7,973

2,813
436
(15)
8

3,242
478
(14)
15

3,721

4,320
4,252

During the ended December 31, 2012, an amount of $49 was written off for patents ($68 for the year ended December 31, 2011) following its

monthly impairment reviews, which was conducted in order to identify licenses and patents that are no longer used by the Company. The unpaid
licenses and patents as at December 31, 2012 was $153 (nil for the year ended December 31, 2011).

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13. BANK AND OTHER LOANS

Bank loan for an authorized amount of $803 (500,000 GBP)
bearing interest at 10 % and repayable in equal monthly
instalments of $67 (41,250 GBP) over a 12 month period with the
final payment due on December 30, 2013. The loan was made to
a subsidiary of the Company, ProMetic BioSciences Ltd, and is
also guaranteed by the Company.

Loan from Investissement Québec for an authorized
amount of $833 in 2012 ($752 in 2011) related to
research and development tax credits (see note 6),
collateralized by a hypothec for that amount on all present
and future research and development tax credits bearing interest at
prime plus 4 % (7% as at December 31, 2012 and
2011). The loan is repayable upon receipt of the tax
credits (1).

2012

2011

803

833

752

$ 752
(1) The loan from Investissement Québec is collateralized by a personal guarantee provided by an officer who is also a director of the Company. The

$ 1,636

loan was repaid in full in February 2013 upon receipt of research and development tax credits (note 32).

14. TRADE AND OTHER PAYABLES

Trade

Other payables

2012

$ 2,353
2,741

$ 5,094

2011

$ 4,431
2,660

$ 7,091

The other payables consist principally of accruals in relation to trade payables. Smaller sums relating to salaries payable, vacation payable and
statutory benefit payable are also included.

15. PROMISSORY NOTES FROM SHAREHOLDERS
During the year ended December 31, 2012, the Company signed an unsecured promissory note in favor of a shareholder for a total amount

received of $100 ($997 for the year ended December 31, 2011).

A total of $667 was reimbursed to shareholders during the year ended December 31, 2012 ($180 was reimbursed during the year ended December
31, 2011). Included in this total is a promissory note of $407 that was retired by the lender as partial-consideration toward the Technology Access
Fee (note 10). The balance of that Technology Access Fee was paid in cash.

All promissory notes are payable on demand, are unsecured and bear interest at a rate of 12% (weighted average rate of 9% as
at December 31, 2011).

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16. DEFERRED REVENUES

Deferred service revenues
Deferred product sales
Deferred license fees

2012

$
589
1,666
100

$ 2,355

2011

$ 160
287
-

$ 447

17. REPAYABLE GOVERNMENT GRANTS AND FINANCE LEASE OBLIGATIONS

(a) Repayable government grants

During May, 2011 and September 2011, the Company’s wholly-owned subsidiary, ProMetic Biosciences Limited, secured an interest-free, repayable
working capital grant from the Isle of Man Government Department of Economic Development for the sum of $474 (GBP 300,000), which was
repayable in six equal monthly installments starting six months from the initial drawdown of the grant and for the sum of $790 (GBP 500,000),
which was repayable by December 31, 2011 against revenues from a $4,000 follow-on purchase order pursuant to a long-term supply agreement
entered into with a customer in 2009. This grant of GBP 500,000 bears interest at 5% per annum. Both grants were renegotiated into a single
instrument, during the second quarter of 2012 which is now repayable, in one installment, no later than February 23, 2013 and bears interest at
5%. The funds have been granted for working capital purposes in a subsidiary of the Company, ProMetic Biosciences Limited. Subsequent to
December 31, 2012, the loan was renegotiated (note 32).

As at December 31, 2012, an amount of $551 (GBP 340,858) ($720 (GBP 456,246) as at December 31, 2011) was outstanding.

(b) Finance lease obligations

Obligations under finance leases of $13 bearing interest at 1.08% (from 1.08% to 13.87% as at December 31, 2011), payable in monthly

installments of $0.7 ($0.4 to $0.7 as at December 31, 2011) and maturing in July 2014 (from August 2012 to July 2014 as at December 31, 2011).

18. LONG-TERM DEBT PROVIDED BY SHAREHOLDERS

Loans from a director (a)
Other loans (b)

Less: current portion of long-term debt

(a) Loans from a director

2012

600
$
3,417
4,017
600
$ 3,417

2011

$ 750
3,411
4,161
750
$ 3,411

Loan from a director of the Company for an amount of $250 bearing interest at a rate of 15 %, repayable on demand. The promissory note
was converted into a loan agreement during the year ended December 31, 2011 having the same terms and conditions. During the year ended
December 31, 2012, an amount of $150 plus interest of $34 due under the loan was reimbursed to the director by issuing 1,373,572 shares.

Loan for an amount of $500 from a company controlled by the aforementioned director. The loan, which was subject to a fee of $45, also bears
interest at the rate of 12% per annum and was originally due to mature on October 31, 2011, but the term has been indefinitely extended with
the permission of the lender and is repayable on demand. During the year ended December 31, 2012, an amount of $100 representing the fees
of $45 and $55 of interest due under the debt were reimbursed to the director by issuing 768,036 shares.

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The Company granted a second rank hypothec on the universality of the movable property of the Company and a subsidiary.

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(b) Other loans:

1) Loan for an initial principal amount of $2,000 that could reach an amount of $5,000 under certain conditions. The loan is secured by
hypothecs in the amount of $6,000 granted by the Company and a subsidiary on the universality of their movable property. In March 2010,
the Company repaid an amount of $1,000 of the loan.

On December 31, 2010, the Company and the lender signed a letter of intent to extend the payment terms of the debt from March 23, 2011
to July 1, 2012 for consideration to be mutually agreed upon within 30 days of the signing of the letter of intent. On January 24, 2011, the
repayment terms were formally renegotiated and the Company agreed to issue to the lender 1,335,828 fully paid common shares and 714,285
warrants with an exercise price of $0.14 per share, exercisable for a period of three years. As per the new agreement, no cash interest has been
charged to the Company for this extension. The loan bears no stated interest (the effective interest rate, taking into account the shares and
warrants issued as consideration for the renegotiation, is 37.50%). The renegotiation created a debt extinguishment for accounting purposes.
Consequently, the loan was derecognized and a new loan recognized at fair value, creating a loss on extinguishment of debt in the amount of
$65. The fair value of $633 was estimated using discounted future cash flows and the residual was allocated to the warrants and shares in the
amounts of $167 and $200, respectively.

On December 31, 2011, the Company and the lender signed a letter of intent to extend the maturity date of the debt from July 1, 2012 to July
1, 2013 for consideration to be mutually agreed upon within 45 days of the signing of the letter of intent. On February 2, 2012, the repayment
terms were formally renegotiated and the Company agreed to issue to the lender 960,000 fully paid common shares and 714,285 warrants with
an exercise price of $0.14 per share, exercisable for a period of three years. As per the new agreement, no cash interest was charged to the
Company for this extension. The loan bears no stated interest (the effective interest rate, taking into account the shares and warrants issued
as consideration for the renegotiation, is 37.50%). The renegotiation was a debt extinguishment for accounting purposes. Consequently, the
loan was derecognized and a new loan recognized at fair value, creating a loss on extinguishment of debt in the amount of $124. The fair value
of $638 was estimated using discounted future cash flows and the residual was allocated to the warrants and shares in the amounts of $237 and
$125, respectively. The carrying value of the loan as at December 31, 2012 was $854 ($853 as at December 31, 2011).

On December 31, 2012, the Company and the lender signed a letter of intent to extend the maturity date of the debt from July 1, 2013 to
July 1, 2014 for consideration to be mutually agreed upon within 60 days of the signing of the letter of intent. On February 20th, 2013, the
repayment terms were formally renegotiated and the Company agreed to issue to the lender 260,869 fully paid common shares and 188,679
warrants with an exercise price of $0.53 per share, exercisable for a period of two years. As per the new agreement, no cash interest was charged
to the Company for this extension. The loan was therefore reclassified as a long-term liability as at December 31, 2012. The renegotiation will
be accounted for as a debt extinguishment for accounting purposes in February 2013.

2) Loan for an initial principal amount of $500 that could reach an amount of $1,000 under certain conditions. The loan is secured by
hypothecs of $1,000 granted by the Company and a subsidiary on the universality of their movable property.

On December 31, 2010, the Company and the lender signed a letter of intent to extend the payment terms of the debt from June 3, 2011
to July 1, 2012 for consideration to be mutually agreed upon within 30 days of the signing of the letter of intent. On January 24, 2011, the
repayment terms were formally renegotiated and the Company agreed to issue to the lender 476,272 fully paid common shares and 357,142
warrants with an exercise price of $0.14 per share, exercisable for a period of three years. As per the new agreement, no cash interest has been
charged to the Company for this extension. The loan bears no stated interest (the effective interest rate, taking into account the shares and
warrants issued as consideration for the renegotiation, is 37.50%). The renegotiation was a debt extinguishment for accounting purposes.
Consequently, the loan was derecognized and a new loan recognized at fair value, creating a loss on extinguishment of debt in the amount of
$59. The fair value of $317 was estimated using discounted future cash flows and the residual was allocated to the warrants and shares in the
amounts of $112 and $71, respectively.

On December 31, 2011, the Company and the lender signed a letter of intent to extend the maturity date of the debt from July 1, 2012 to July
1, 2013 for consideration to be mutually agreed upon within 45 days of the signing of the letter of intent. On February 2, 2012, the repayment
terms were formally renegotiated and the Company agreed to issue to the lender 480,000 fully paid common shares and 357,142 warrants with
an exercise price of $0.14 per share, exercisable for a period of three years. As per the new agreement, no cash interest was charged to the
Company for this extension. The loan bears no stated interest (the effective interest rate, taking into account the shares and warrants issued
as consideration for the renegotiation, is 37.50%). The renegotiation was a debt extinguishment for accounting purposes. Consequently, the
loan was derecognized and a new loan recognized at fair value, creating a loss on extinguishment of debt in the amount of $62. The fair value
of $319 was estimated using discounted future cash flows and the residual was allocated to the warrants and shares in the amounts of $119 and
$62, respectively. The carrying value of the loan as at December 31, 2012 was $428 ($426 as at December 31, 2011).

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On December 31, 2012, the Company and the lender signed a letter of intent to extend the maturity date of the debt from July 1, 2013 to
July 1, 2014 for consideration to be mutually agreed upon within 60 days of the signing of the letter of intent. On February 20th, 2013, the
repayment terms were formally renegotiated and the Company agreed to issue to the lender 130,434 fully paid common shares and 94,340
warrants with an exercise price of $0.53 per share, exercisable for a period of two years. As per the new agreement, no cash interest was charged
to the Company for this extension. The loan was therefore reclassified as a long-term liability as at December 31, 2012. The renegotiation will
be accounted for as a debt extinguishment for accounting purposes in February 2013.

3) Loan for a principal amount of $500. The loan is secured by hypothecs of $500 granted by the Company and a subsidiary on the universality
of their movable property. On December 31, 2010, the Company and the lender signed a letter of intent to extend the payment terms of the
debt from August 21, 2011 to July 1, 2012 for consideration to be mutually agreed upon within 30 days of the signing of the letter of intent. On
January 24, 2011, the repayment terms were formally renegotiated and the Company agreed to issue to the lender 377,963 fully paid common
shares and 357,142 warrants with an exercise price of $0.14 per share, exercisable for a period of three years. As per the new agreement, no
cash interest has been charged to the Company for this extension. The loan bears no stated interest (the effective interest rate, taking into
account the shares and warrants issued as consideration for the renegotiation, is 37.50%). The renegotiation was a debt extinguishment for
accounting purposes. Consequently, the loan was derecognized and a new loan recognized at fair value, creating a loss on extinguishment
of debt in the amount of $93. The fair value of $317 was estimated using discounted future cash flows and the residual was allocated to the
warrants and shares in the amounts of $127 and $57, respectively.

On December 31, 2011, the Company and the lender signed a letter of intent to extend the maturity date of the debt from July 1, 2012 to July
1, 2013 for consideration to be mutually agreed upon within 45 days of the signing of the letter of intent. On February 2, 2012, the repayment
terms were formally renegotiated and the Company agreed to issue to the lender 480,000 fully paid common shares and 357,142 warrants with
an exercise price of $0.14 per share, exercisable for a period of three years. As per the new agreement, no cash interest was charged to the
Company for this extension. The loan bears no stated interest (the effective interest rate, taking into account the shares and warrants issued
as consideration for the renegotiation, is 37.50%). The renegotiation was a debt extinguishment for accounting purposes. Consequently, the
loan was derecognized and a new loan recognized at fair value, creating a loss on extinguishment of debt in the amount of $62. The fair value
of $319 was estimated using discounted future cash flows and the residual was allocated to the warrants and shares in the amounts of $119 and
$62, respectively. The carrying value of the loan as at December 31, 2012 was $428 ($426 as at December 31, 2011).

On December 31, 2012, the Company and the lender signed a letter of intent to extend the maturity date of the debt from July 1, 2013 to
July 1, 2014 for consideration to be mutually agreed upon within 60 days of the signing of the letter of intent. On February 20th, 2013, the
repayment terms were formally renegotiated and the Company agreed to issue to the lender 130,435 fully paid common shares and 94,339
warrants with an exercise price of $0.53 per share, exercisable for a period of two years. As per the new agreement, no cash interest was charged
to the Company for this extension. The loan was therefore reclassified as a long-term liability as at December 31, 2012. The renegotiation will
be accounted for as a debt extinguishment for accounting purposes in February 2013.

4) Non-interest bearing loans for principal amounts of $1,500, $500, $470 and $250. The loans are secured by hypothecs of $2,720 granted by
the Company and a subsidiary on the universality of their movable property.

In May 2010, ProMetic repaid an amount of $720 of the loans.

On December 31, 2010, the Company and the lender signed a letter of intent to extend the payment terms of the two loans to July 1, 2012

for consideration to be mutually agreed upon within 30 days of the signing of the letter of intent. On January 24, 2011, the repayment terms
were formally renegotiated and the Company agreed to issue to the lender, for both loans, a total of 2,318,436 fully paid common shares and
1,428,570 warrants with an exercise price of $0.14 per share, exercisable for a period of three years. As per the new agreement, no cash interest
has been charged to the Company for this extension. The loan bears no stated interest (the effective interest rate, taking into account the
shares and warrants issued as consideration for the renegotiation, is 37.50%). The renegotiation was a debt extinguishment for accounting
purposes. Consequently, the loans were derecognized and new loans recognized at fair value, creating a loss on extinguishment of debt in the
amount of $170. The fair values of the loans in the amount of $1,266 were estimated using discounted future cash flows and the residual was
allocated to the warrants and shares in the amounts of $386 and $348, respectively.

On December 31, 2011, the Company and the lender signed a letter of intent to extend the payment terms of the debt from July 1, 2012 to July
1, 2013 for consideration to be mutually agreed upon within 45 days of the signing of the letter of intent. On February 2, 2012, the repayment
terms were formally renegotiated and the Company agreed to issue to the lender, for both loans, a total of 1,920,000 fully paid common shares
and 1,428,570 warrants with an exercise price of $0.14 per share, exercisable for a period of three years. As per the new agreement, no cash
interest was charged to the Company for this extension. The loan bears no stated interest (the effective interest rate, taking into account the
shares and warrants issued as consideration for the renegotiation, is 37.50%). The renegotiation was a debt extinguishment for accounting

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purposes. Consequently, the loans were derecognized and new loans recognized at fair value, creating a loss on extinguishment of debt in the
amount of $249. The fair values of the loans in the amount of $1,276 were estimated using discounted future cash flows and the residual was
allocated to the warrants and shares in the amounts of $474 and $250, respectively. The carrying values of the loans as at December 31, 2012
were $1,707 ($1,706 as at December 31, 2011).

On December 31, 2012, the Company and the lender signed a letter of intent to extend the payment terms of the debt from July 1, 2013 to
July 1, 2014 for consideration to be mutually agreed upon within 60 days of the signing of the letter of intent. On February 20th, 2013, the
repayment terms were formally renegotiated and the Company agreed to issue to the lender 521,738 fully paid common shares and 377,359
warrants with an exercise price of $0.53 per share, exercisable for a period of two years. As per the new agreement, no cash interest was charged
to the Company for this extension. The loans were therefore reclassified as a long-term liability as at December 31, 2012. The renegotiation will
be accounted for as a debt extinguishment for accounting purposes in February 2013.

The combined effect of the renegotiations that occurred in February 2012 and described in 1) to 4) above was a total loss on extinguishment of
debt of $497 ($387 for 2011).

5) Loan of US$10,000,000 ($10,700) from Abraxis, originally issued in February 2010. The loan bore interest at a rate of 5% and was
reimbursable in five annual installments. Abraxis had the option to request that each annual installment be converted into ProMetic common
shares at the future prevailing market price at the time of the annual installment.

On March 31, 2011, the Company entered into an agreement with Abraxis, a wholly-owned subsidiary of Celgene Corporation, whereby the

Company would assign certain intellectual property rights regarding a protein technology to Celgene Corporation for specific fields of use. As
consideration for the assignment of the intellectual property rights, the US $10,000,000 loan entered into with Abraxis in February 2010 was
forgiven. The agreement required the Company to comply with certain administrative milestones by February 9, 2012. Failure to meet these
milestones would have resulted in a portion of the above loan being re-instated for an amount ranging from US$6,000,000 to US$8,000,000.
For accounting purposes, the loan, including any accrued interest, was derecognized and the Company recognized licensing revenues in
the amount of US$2,000,000 ($1,944) on March 31, 2011. The balance was recorded as deferred revenues and recognized in revenues upon
meeting the required milestones.

In April 2011, one of the milestones was achieved. The Company recognized licensing revenues in the amount of US$2,000,000 ($1,897)
during the second quarter ended June 30, 2011.

In February 2012, the Company announced that it signed a final agreement with Celgene Corporation relating to the above transaction for the
assignment of intellectual property rights. The Company had satisfied all remaining administrative milestones pertaining to the March 31, 2011
agreement during the fourth quarter ended December 31, 2011 and, as a result, met the conditions for recognizing the remaining licensing
revenues amounting to US$6,000,000 ($6,162).

19. ADVANCE ON REVENUES FROM A SUPPLY AGREEMENT

Advance on revenues from a supply agreement for an initial amount of $3,400 (GBP 2,000,000) that could reach an amount of $4,250 (GBP
2,500,000), which was deemed to be the fair value at inception, bears interest at a rate of 5% per annum. The advance is repayable as revenues are
received under the supply agreement as products are supplied. The advance has a five-year term and the balance due at the maturity date in 2014
is repayable in cash. The current portion of the advance on revenues from a supply agreement was determined as a percentage of the expected
product sales in the coming 12 months using forecasts from the customer, under the supply agreement. During the year ended December 31,
2012, a net reduction in the advance in the amount of $238 was made related to products supplied under the agreement. During the year ended
December 31, 2011, no products were supplied by the Company; as such there was no reduction in the advance in 2011.

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20. SHARE CAPITAL

Authorized and without par value:

Unlimited number of common shares, participating, carrying one vote per share, entitled to dividends.

Unlimited number of preferred shares, no par value, issuable in one or more series.

Issued and fully paid common shares
Share purchase loan to an officer, without interest and
due February 15, 2013 (*)

Balance at end of the period

2012

2011

Number

Amount

Number

Amount

432,531,873

$ 225,191

396,193,349

$ 221,227

(450)

$ 224,741

(450)

$ 220,777

(*) The share purchase loan to an officer was extended for 45 days, having a new maturity date of February 15, 2013. The terms of the loan
were again renegotiated on March 7, 2013, subject to shareholder approval, as described in note 32.

a) Share capital:
Changes in the issued and outstanding common shares were as follows:

Issued and fully paid

Balance at January 1, 2011
Issued for cash
Issued in relation to debt renegotiation (note 18)
Payment of expenses
Exercise of options
Balance at December 31, 2011

Issued for cash
Issued in relation to debt renegotiation (note 18)
Reimbursment of principal, interest and
fees related to loans from a director
Exercise of warrants
Payment of expenses
Balance at December 31, 2012

To be issued

Balance at January 1, 2012
Share subscription receivable
Balance at December 31, 2012

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Number of
shares

353,164,339
36,322,272
4,508,499
2,098,239
100,000
396,193,349

28,499,996
3,840,000

2,141,608
1,125,000
731,920
432,531,873

-
48,147,053
48,147,053

Amount

$ 215,266
4,602
676
216
17
$ 220,777

$ 2,903
499

284
191
87
$ 224,741

-
9,822
9,822
$

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2012

During the year ended December 31, 2012, the Company issued a total of 28,499,996 shares and 6,345,451 warrants for private placements for
a total consideration of $3,135. The warrants had an exercise price of $0.18 per share and exercisable for two years. The net proceeds were
allocated to share capital and warrants (contributed surplus) based on their relative fair values. The fair value of the warrants was estimated using
the Black-Scholes option pricing model using a weighted average volatility of 93%, an expected life of two years and a weighted average risk-free
interest rate of 1.23%. As a result of these issuances, share capital was increased by an amount of $2,903 and contributed surplus was increased by
an amount of $232.

On October 15, 2012, the Company entered into a private placement agreement with a strategic investor to issue 48,147,053 common shares at an
agreed upon price of $0.204 per common share, for gross proceeds of approximately $9,822. As the share subscription was receivable at December
31, 2012, the shares were considered to be outstanding, including in the computation of the earnings (loss) per share and the diluted earnings
(loss) per share. The share subscription receivable was received and the shares issued on January 7, 2013. The shares are not freely tradable before
three years.

In February 2012, the Company issued 3,840,000 common shares following the renegotiation with its lenders to extend the payment terms of the
loans as described in note 18.

The Company also issued 2,141,608 shares for the reimbursement of principal, interest and fees related to loans from a director for a total $284
(note 18). The Company issued 1,125,000 shares for the exercise of warrants. As a result of this issuance, the share capital was increased by $191.

Finally, 731,920 shares were issued to suppliers for the payment of $87 of expenses.

Share issue expenses related to the above were $653 and were recorded as an increase of the deficit.

2011

During the first three quarters of the year 2011, the Company issued a total of 23,185,910 shares for private placements for a total consideration of
$3,355. In the fourth quarter of the year ended December 31 2011, the Company issued 13,136,362 shares and 5,261,545 warrants, with an exercise
price of $0.18 per share and exercisable for two years, resulting in gross proceeds of $1,455. The net proceeds were allocated to share capital and
warrants (contributed surplus) based on their relative fair values. The fair value of the warrants was estimated using the Black-Scholes option
pricing model using a weighted average volatility of 0.91%, an expected life of two years and a weighted average risk-free interest rate of 0.96%. As a
result of these issuances, share capital was increased by an amount of $1,247 and contributed surplus was increased by an amount of $208.

In January 2011, the Company issued 4,508,499 common shares following the renegotiation with the lenders to extend the payment terms of the
loans as described in note 18. A total of 2,098,239 shares were issued for payment of expenses in the amount of $216.

Finally, 100,000 shares were issued for a total consideration of $17, resulting from the exercise of options granted in the past

Share issue expenses related to the above were $59 and were recorded as an increase of the deficit.

b) Warrants and Rights
During the year ended December 31, 2012, 2,857,139 warrants with an estimated fair value of $949 were issued in relation to the renegotiation
of the loans and 6,345,451 warrants with an estimated fair value of $232 were issued in connection with private placements. As at December 31,
2012, the following warrants and rights to acquire shares were outstanding:

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Warrants and rights
to acquire shares

Expiry date

Exercise price

375,000
1,454,546
1,945,454
1,861,545
2,857,139
909,090
1,254,545
3,636,362
545,454
2,857,139
14,495,452
30,296,036

April 2013
October 2013
November 2013
December 2013
January 2014
March 2014
April 2014
May 2014
June 2014
February 2015
February 2017
February 2017

$0.22
$0.18
$0.18
$0.18
$0.14
$0.18
$0.18
$0.18
$0.18
$0.14
$0.47
$0.47

The Company uses the Black-Scholes option pricing model to calculate the fair value of warrants and rights to acquire shares. During the year
ended December 31, 2012, 9,202,590 warrants were issued having a fair value of $1,181 and expiring from March 2014 to February 2015.
During the year ended December 31, 2011, 8,118,684 warrants were issued having a fair value of $999 and expiring in October 2013,
November 2013, December 2013 and January 2014.

c) Stock options:
The Company has established a stock option plan for its directors, officers and employees or service providers. The plan provides that the
aggregate number of shares reserved for issuance at any time under the plan and any other employee incentive plans may not exceed
15,913,317 common shares. The new options issued may be exercised over a period not exceeding five years and one month from the date
they were granted (with the exception of certain options which are either immediately vested on grant, or vest after one year from grant, most
options vest 20% per annum, after one year following the date at which they were granted or immediately as they are granted). The exercise
price is based on the average strike price of the five business days prior to the grant. As at December 31, 2012, the number of options still
available to be issued is 2,896,179 (4,116,666 as at December 31, 2011).

The following table summarizes the changes in the number of stock options outstanding over the last two years.

Total number of options as at December 31, 2010

Granted
Exercised
Forfeited
Expired

Total number of options as at December 31, 2011

Granted
Forfeited
Expired

Total number of options as at December 31, 2012

Options

8,987,451
2,765,750
(100,000)
(127,900)
(471,250)
11,054,051
3,957,000
(224,929)
(2,511,584)
12,274,538

Range of
exercise price

Number
outstanding

Weighted average
remaining
contractual life
(in years)

0.11 - 0.18
0.19 - 0.40

10,181,621
2,092,917

12,274,538

3.33
0.70

2.88

Weighted
average
exercise price

0.15
0.40

0.19

Number
exercisable

7,081,421
1,804,417

8,885,838

Weighted
average exercise
price per share
0.33
0.14
0.17
0.24
0.37
0.28
0.13
0.19
0.51
0.19

Weighted
average
exercise price

0.15
0.40

0.20

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d) Stock-based compensation:

The Company uses the Black-Scholes option pricing model (a binomial model) to calculate the fair value of options at the date of grant, using
the following assumptions:

The fair value of each option granted was estimated on the grant date for purposes of determining stock-based compensation expense using
the binomial option pricing model. The volatility measured at the standard deviation of continuously compounded share returns is based on
statistical analysis of daily share prices over a historical period equal to the expected life of the option. The weighted average inputs into the
model and the resulting grant date fair values were as follows:

Expected dividend yield
Expected volatility of share price
Risk-free interest rate
Expected life in years
Weighted average grant date fair value

Years ended December 31,

2012

$ 0.00
88.52 %
1.32 %

5 years
$ 0.09

2011

$ 0.00
90.16 %
1.72 %

5 years
$ 0.09

A compensation expense of $365 was recorded in the stock-based compensation for the year 2012 ($198 for the year 2011) as a result of stock
options granted to directors, officers, employees and consultants.

The risk-free rate used in determining the fair value of the share option awards are based on the Government of Canada yield curve.

The resulting fair value is expensed over the service period of one to five years on the assumption that 5.35% (5.67% in 2011) of the options will

lapse over the service period as employees leave the Company.

e) Restricted share units

In May 2011, the Company granted a total of 3,200,000 equity-settled restricted share units (“RSUs”) to certain executive officers of the
Company, as part of its incentive program designed to align the interests of its executives with those of its shareholders, and in accordance with
its Long Term Incentive Plan (“LTIP”). The RSUs only vest upon achievement of various important corporate and commercial objectives that
would create significant shareholder value.

The expense is evaluated taking into consideration the probability of each objective being reached and the estimated date (which cannot

exceed December 31, 2013), upon which it is expected that each objective will likely be reached.

A compensation expense of $140 for the year ended December 31, 2012 ($113 for the year ended December 31, 2011) was recorded in the

stock-based compensation.

21. RELATED PARTY TRANSACTIONS

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on
consolidation and are not disclosed in this note. Details of transactions between the Company and other related parties are disclosed below
and in other notes accordingly.

Camofi Guarantee

On December 5, 2008, the Company entered into an agreement to provide a guarantee (the “Guarantee”) in favour of Camofi Master LDC

(“Camofi”), relating to an amended and restated loan agreement (the “Loan”) that Camofi had provided to a company (the “borrower”) wholly-
owned by a senior officer of the Company. The Loan was originally contracted in December 2007 for the purposes of purchasing shares of the
Company.

The Guarantee provides that the Company must be prepared to fulfill the borrower’s obligations with respect to the full payment of capital and
interest for the Loan if the borrower is unable to do so. Any such payment shall be made within two days of receipt of notice of default from
Camofi. Alternatively, the borrower can force Camofi to liquidate some or all of the shares of the Company that are held as collateral to cover the
Loan. If called upon under the Guarantee, the Company may chose either to pay in cash or request that the borrower instruct Camofi to liquidate
up to 2,300,000 shares of the Company to repay the Loan.

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In conjunction with the above, the Company entered into an agreement with the borrower providing that any payment made by the Company
under the Guarantee immediately triggers an equivalent receivable from the borrower. This receivable bears interest at 10% per annum, is
evidenced by a demand promissory note and, upon termination of the Loan and the pledge agreement, will be secured by 2,300,000 shares of the
Company until all payments of principal and interest owed to the Company are made. This receivable will be recorded at fair value by the Company
only when its collectability is reasonably assured.

The Company risks losing a maximum amount of $2,300 plus interest and penalties, without taking into consideration the net proceeds arising
from the disposal of the 9,500,000 pledged shares of the Company. The Company has not required any consideration in exchange for this
Guarantee.

As at December 31, 2012 and 2011, no receivable from the borrower was recorded given that collectability was not reasonably assured.

Concurrent with this settlement agreement being reached, an amended and restated loan agreement was entered into between the borrower and
the Company requiring the borrower to fully repay the Company no later than March 31, 2013. Furthermore, should certain stock price thresholds
be reached, the Company may require the borrower to pay the outstanding balance of the loan. This amended and restated loan agreement
received shareholder approval at the May 5, 2010 Annual and Extraordinary Meeting of the shareholders. The said loan is secured by a pledge in
favor of the Company by the borrower of 9,500,000 shares of the Company stock. The loan is also secured by a pledge in favor of the Company by
Invhealth Capital Inc. (a wholly-owned subsidiary of a senior officer of the Company) of all its shares of the borrower and by a pledge in favor of the
Company by the senior officer of the Company of all of his shares of Invhealth Capital Inc. Subsequent to year-end, on March 7, 2013, the loan was
renegotiated, subject to shareholder approval, as described in note 32.

Other related party transactions

Included in the trade and other payables in the statement of financial position is an amount of $46 due to a manager of the Company as at
December 31, 2012 ($35 as at December 31, 2011).

Following a consulting agreement entered into with a director of the Company, success fees of 5% of the relevant proceeds received by the
Corporation, for a total of $600, are payable to said director. As at December 31, 2012, $500 remained unpaid (nil for the year ended December 31,
2011). However, pursuant to the terms and conditions of said consulting agreement, the Company will not be required to pay more than $250 per
year to said director pursuant to said agreement. The remaining amounts owed will be paid over the coming years and all payments will be subject
to the previously mentioned $250 annual cap.

Compensation of key management personnel
The remuneration of directors and other members of key management personnel during the years ended December 31, 2012 and 2011 was as
follows:

Short-term employee benefits (1)
Pension costs

Stock-based compensation

Years ended December 31,

2012

2,983
98

366
3,447

2011

1,600
96

277
1,975

(1) Short-term employee benefits include all fees paid to directors and for certain senior management employees, salaries, bonuses and the cost of
other employee benefits.

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22. CAPITAL DISCLOSURES

Bank and other loans
Promissory notes from shareholders
Repayable government grants and finance
lease obligations
Long-term debt provided by shareholders
Shareholder’s equity (deficiency)

Cash

December 31,
2012
$ 1,636
250

564
4,017
5,819
(1,205)
$ 11,081

December 31,
2011
752
817

746
4,161
(8,568)
(275)
$ (2,367)

The Company’s objective in managing capital is to ensure sufficient liquidity to finance its research and development activities, administration
and marketing expenses, working capital and overall capital expenditures, including those associated with patents and trademarks. The Company
makes every effort to manage its liquidity to minimize dilution to its shareholders, whenever possible. The Company is not subject to externally
imposed capital requirements and the Company’s overall strategy with respect to capital risk management remains unchanged from the year ended
December 31, 2011.

23. INFORMATION INCLUDED IN THE CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

a) Government assistance

Gross research and development expenses
Research and development tax credits

b) Finance costs

Interest on long-term debt
Interest on bank loan, other loan and other interest expenses

c) Wages and salaries

Wages and salaries

Employer’s benefits
Pension costs
Stock-based compensation
Total employee benefit expense

24. COMMITMENTS

December 31,
2012

December 31,
2011

$ 11,267
(957)
10,310

1,250
233
1,483

9,649

845
316
505
11,315

$ 12,229
(999)
11,230

1,195
168
1,363

8,890

760
264
311
10,225

The Company has total commitments in the amount of $12,591 under various operating leases for the rental of offices, production plant, and
laboratory space and office equipment. The payments for the coming years and thereafter are as follows:

2013
2014
2015
2016
2017 and thereafter

1,888
1,730
1,760
1,823
5,390
$ 12,591

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The total rental expenses for the year ended December 31, 2012 amounted to $1,835 ($2,243 as at December 31, 2011).

a) In April 2006, the Company paid the American Red Cross an amount of US$1,000,000 for an exclusive license for access to and use of

intellectual property rights for the Plasma Protein Purification System (“PPPS”) project. ProMetic will collect revenues derived from any
licensing activities, such as royalties on net sales, lump sum amounts and/or milestone payments. ProMetic will pay a royalty to the American
Red Cross of 12% of all revenues derived from sales of products to third parties. Also, every year, an annual minimum royalty of US$30,000 is
payable.

b) An officer of the Company is entitled to receive royalties based on the sales of certain products made available to ProMetic before joining the
Company. These royalties are 0.5% of net sales or 3% of revenues received by the Company. This employee also has the exclusive right to
commercialize these products should ProMetic decide to stop developing and/or commercializing them, subject to mutually acceptable terms
and conditions. To date, no royalties have been accrued or paid.

c) In the normal course of business, the Company enters into license agreements for the market launching or commercialization of intellectual
property. Under these licenses, including those mentioned above, the Company has committed to pay royalties ranging generally between
0.5% and 10% of net sales from products it commercializes.

25. PENSION PLAN

The Company contributes to a defined contribution pension plan for all of its permanent employees. The Company matches most employees’
contributions up to 4% of their annual salary. The Company’s contributions for the year amounted to $316 ($316 in 2011).

26. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT

December 31,
2012

December 31,
2011

Financial assets

Held-for-trading

Cash, measured at fair value

Restricted cash, measured at fair value

Loans and receivables
Accounts receivable and share purchase loan to
an officer, recorded at amortized cost
Share subscription receivable recorded at amortized cost

Available-for-sale
Convertible preferred shares of AM-Pharma, recorded at cost

Financial liabilities

Other financial liabilities

Bank and other loans, measured at amortized cost

Trade and other payables, measured at amortized cost

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Promissory notes from shareholders, measured at amortized cost

Repayable government grants and finance leases, measured at amortized cost

Long-term debt provided by shareholders, measured at amortized cost

Advance on revenues from a supply agreement, measured at amortized cost

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E
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$ 1,205
198
1,403

3,158
9,822
12,980

27
14,410

$ 1,636

5,094

250

564

4,017

3,030

14,591

$
275
233
508

699
-
699

27
1,234

752

7,091

817

746

4,161

3,063

16,630

Fair value hierarchy

Financial instruments recorded at fair value on the consolidated statements of financial position are classified using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

Level 1 – valuation based on quoted prices observed in active markets for identical assets or liabilities.

Level 2 – valuation techniques based on inputs that are quoted prices of similar instruments in active markets; quoted prices for identical or similar
instruments in markets that are not active; inputs other than quoted prices used in a valuation model that are observable for that instrument; and
inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 – valuation techniques with significant unobservable market inputs.

A financial instrument is classified to the lowest level of the hierarchy for which a significant input has been considered in measuring fair value.

a) Fair value:
The carrying value of cash, accounts receivable, share subscription receivable, restricted cash, bank loan, other loan, trade and other payables,
promissory notes from shareholders and repayable grants equals their fair value because of the near-term maturity of these instruments.

The other loans are carried at their amortized cost, which approximates fair value due to the use of discount rates the Company would expect
for similar loans. The carrying value of the repayable government grant and the advance on the revenues from a supply agreement are
considered to approximate fair value as the rates are similar to those the Company would expect for similar loans having the same maturities
and relationships with the lenders.

b) Financial risk management
The Company has exposure to credit risk, liquidity risk and market risk.

The Company’s Board of Directors has the overall responsibility for the oversight of these risks and reviews the Company’s policies on an

ongoing basis to ensure that these risks are appropriately managed.

i) Credit risk:
Credit risk is the risk of financial loss to the Company if a customer, partner or counterparty to a financial instrument fails to meet its

contractual obligations, and arises principally from the Company’s cash, investments, receivables and share subscription receivable and share
purchase loan to an officer. The carrying amount of the financial assets represents the maximum credit exposure.

The financial instruments that potentially expose the Company to credit risk are primarily cash, restricted cash and trade accounts receivable.

The Company reviews a new customer’s credit history before extending credit and conducts regular reviews of its existing customers’ credit

performance.

The Company evaluates accounts receivable balances based on the age of the receivable, credit history of the customers and past collection

experience. As at December 31, 2012, there were doubtful amounts related to past due accounts as indicated in the following table:

Trade and other receivables:

Current and not impaired

Past due in the following periods
31 to 60 days
61 to 90 days
Over 90 days
Allowance for doubtful accounts - over 90 days

Trade receivables
Other receivables
Total accounts receivable

December 31,
2012

December 31,
2011

$ 1,308

1,298
10
266
(260)
2,622
86
$ 2,708

$ 166

37
3
261
(260)
207
43
$ 250

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Trade receivables included amounts from three customers which represent approximately 90% (17%, 32%, 42%, respectively) of the

Company’s total trade accounts receivable as at December 31, 2012 and four customers which represent approximately 87% (16%, 16%, 21%
and 34%, respectively) of total trade accounts receivable as at December 31, 2011.

ii) Liquidity risk:
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. Given the Company’s current

revenue expectations, there is some uncertainty as to whether it will have sufficient working capital to fund its current operating and working
capital requirements for the next 12 months. To the extent that the Company does not believe it has sufficient liquidity to meet its current
obligations, management considers securing additional funds through equity, debt or partnering transactions (note 1). The Company manages
its liquidity risk by continuously monitoring forecasts and actual cash flows.

As at December, 31, 2012

Less than
3 months

3 - 6 months

6 months to
1 year

More than
1 year

Bank and other loans
Trade and other payables
Promissory notes from shareholders
Repayable government grants and finance leases
Long-term debt provided by shareholders
Advance on revenues from a

supply agreement

$ 1,636
5,094
250
553
600

549

$ 8,682

-
-
-
2
-

563

$ 565

-
-
-
5
-

1,464

$ 1,469

Total

$ 1,636
5,094
250
564
4,600

-
-
-
4
4,000

454

3,030

$ 4,458

$ 15,174

This table only covers liabilities and obligations, and does not anticipate any of the income associated with assets or rights.

iii) Market risk:
Market risk is the risk that changes in market prices, such as interest rates and foreign exchange rates, will affect the Company’s income or the

value of its financial instruments.

a) Interest risk
The majority of the Company’s debt is at a fixed rate, therefore there is limited exposure to interest rate risk.

b) Foreign exchange risk:
The Company is exposed to the financial risk related to the fluctuation of foreign exchange rates. The Company operates in the United

Kingdom and in the United States and a portion of its expenses incurred and revenues generated are in U.S dollars and in pound sterling.
Financial instruments potentially exposing the Company to foreign exchange risk consist principally of cash, receivables, share subscription
receivable, bank loan, trade and other payables, repayable government grants, and advance on revenues from a supply agreement. The
Company manages foreign exchange risk by holding foreign currencies to support forecasted cash outflows in foreign currencies. The majority
of the Company’s revenues are in U.S. dollars and in pound sterling which serve to mitigate the foreign exchange risk.

As at December 31, 2012, the Company is exposed to currency risk through the following assets and liabilities denominated respectively in U.S.

dollars and pound sterling.

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In U.S. dollars

Cash
Accounts receivable
Trade and other payables

Long-term debt provided by shareholders

December 31, 2012

December 31, 2011

US dollar

CDN dollar

US dollar

CDN dollar

326,720
1,357,670
(2,365,801)
-

325,053
1,350,746
(2,353,736)
-

2,710
89,746
(3,580,907)
(403,489)

2,756
91,271
(3,641,783)
(410,348)

Net exposure

(681,411)

(677,937)

(3,891,940)

(3,958,104)

In pound sterling

Cash
Accounts receivable
Bank loan
Trade and other payables
Repayable government grants

Advance on revenues from a supply agreement

December 31, 2012

December 31, 2011

Pound Sterling

CDN dollar Pound Sterling

CDN dollar

522,549
853,444
(496,102)
(299,388)
(340,858)
(1,872,861)

845,380
1,380,702
(802,595)
(484,351)
(551,440)
(3,029,915)

104,968
209,351
-
(727,298)
-
(2,395,232)

165,839
330,753
-
(1,149,058)
-
(3,784,227)

Net exposure

(1,633,216)

(2,642,219)

(2,808,211)

(4,436,693)

Based on the above net exposures as at December 31, 2012, and assuming that all other variables remain constant, a 10 % depreciation
or appreciation of the Canadian dollar against the U.S. dollar would result in a decrease or an increase of the consolidated net loss of
approximately $68.

A 10 % depreciation or appreciation of the Canadian dollar against the pound sterling would result in a decrease or an increase of the
accumulated other comprehensive loss of approximately $264. The Company has not hedged its exposure to currency fluctuations.

27. INCOME TAXES

Net loss
Combined Canadian statutory income tax rate
Computed income tax provision

Decrease (increase) in income taxes resulting from:
Unrecorded potential tax benefit arising from current-period losses and

other deductible temporary differences

Effect of tax rate differences in foreign subsidiaries
Non-taxable items
Future tax rate differences

December 31,
2012

December 31,
2011

$ (422)
26.9 %
(114)

(292)
(1,009)
1,415
-

$ (3,267)
28.4 %
(928)

3,936
(3,931)
789
134

The combined statutory tax rates were 26.9% for 2012 and 28.4% for 2011. As of January 1, 2012, the federal corporate tax rate decreased from

16.5% to 15% thus explaining the decrease of the statutory income tax rate.

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Available temporary differences not recognized at the reporting date are as follows:

Deferred tax assets not recognized at the reporting date:

- Tax losses (non capital)
- Tax losses (capital)
- Unused research and development expenses
- Unrealized loss on exchange rate
- Share issue expenses
- Interest expenses carried forward
- Trade and other payables
- Capital assets
- Licenses and patents
- Start-up expense

December 31,
2012

December 31,

2011

$ 102,544
37,924
19,243
2,585
634
2,624
2,066
775
1,662
6,399
$ 176,456

$ 102,180
37,203
19,243
1,861
448
4,656
2,281
724
1,677
7,098
$ 177,371

As at December 31, 2012, The Corporation and its subsidiaries have non-capital lossess of $102,544 available to reduce future taxable income for
which the benefits have not been recognized. These losses expire at various dates to 2032.

As at December 31, 2012, the Company also had unused federal tax credits available to reduce future Canadian taxable income in the amount of
$5,661 and expiring between 2020 to 2031. Those tax credits have not been recorded and no future income tax liability has been recorded with
respect to those tax credits.

If the Company were to recognize all deferred tax assets, profit would increase by $50,365

Canada

Federal

Provincial

Foreign
Countries

Deductions:

Research and development expenses, without time limit
Share issue expenses
Interest deductions carryover

Losses carried forward expiring in:

2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032

$ 19,243
634
-

19,877

$
-
1,775
521
-
-
-
-
-
-
-
-
-
-
6,455
6,164
8,491
3,151
3,681
4,944
5,703
$ 40,885

$ 28,198
634
-

28,832

$
-
1,382
-
-
-
-
-
-
-
-
-
-
-
5,008
4,864
7,179
2,099
2,511
4,291
6,534
$ 33,868

-
-
2,624

2,624

-
-
-
-
-
-
-
-
1,443
-
2,345
3,153
2,464
3,492
8,364
8,500
3,340
7,911
7,567
1,410
$ 49,989

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The Company has tax losses which arose in the United Kingdom of $11,672 that are available indefinitely for offsetting against future taxable
profits of the subsidiaries in which the losses arose.

28. ADDITIONAL INFORMATION ON THE CONSOLIDATED STATEMENTS OF CASH FLOWS

Change in working capital items

Accounts receivable
Inventories
Prepaid expenses
Trade and other payables
Deferred revenues

December 31,
2012

December 31,
2011

$ (3,278)
34
(74)
(2,501)
1,870

$ (3,949)

$
360
(193)
(7)
2,810
178

$ 3,148

29. SEGMENTED INFORMATION

The financial information is presented in two different operating segments, which are Therapeutics and Protein Technology.

In-house Therapeutics: This operating segment has lead compounds, namely PBI-1402 and analogues PBI-4419, which target unmet medical needs
such as the treatment of fibrosis in patients with chronic kidney diseases and certain cancers, and the side effects associated with chemotherapy.

Protein Technology: This operating segment contains the financial information of the following activities:

BioTherapeutics: The developer of a unique, validated, state-of-the-art solution for plasma fractionation, the Plasma Protein Purification System (PPPSTM).

Bioseparation: Develops and markets bioseparation products based on applications of its patented Mimetic LigandTM technology.

Prion Capture/Pathogen Removal: Provides a technology platform that improves the safety profile of blood products and blood-derived therapeutics.

The accounting policies for the operating segments are the same as those outlined in note 2.

a) Revenues and expenses by operating segments:

For the year ended December 31, 2012

Revenues

Costs of goods sold

Research and development expenses rechargeable

Research and development expenses non-rechargeable

1,741

Administration and marketing expenses

Loss on foreign exchange

Impairment of licenses and patents

Loss on extinguishment of debt

Finance costs

Share of net profit of an associated company

Therapeutics

Protein Technology

Corporate

Total

$ 23,290

5,326

2,647

5,922

556

269

$ 23,321

5,326

2,647

7,663

5,410

5,966

116

497

116

497

1,146

1,483

(2)

(424)

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Net profit (loss)

(1,815)

8,560

(7,169)

Therapeutics

Protein Technology

Corporate

Total

$ 17,582

For the year ended December 31, 2011

Revenues

Costs of goods sold

Research and development expenses rechargeable

Research and development expenses non-rechargeable

1,800

(1,894)

Administration and marketing expenses

Loss on foreign exchange

Impairment of licenses and patents

Impairment of investment

Loss on extinguishment of debt

Finance costs

Net profit (loss)

Segmented information by operating segment

b) Total assets by operating segments

Therapeutics
Protein Technology
Corporate

1,854

1,351

8,079

575

207

5,471

$ 17,589

1,854

1,351

9,879

5,214

5,789

140

387

1,103

1,363

(6,844)

(3,267)

December 31,
2012

December 31,
2011

$ 3,675
8,790
10,526

$ 22,991

$ 2,867
5,464
361

$ 8,692

The investment in an associated company is included in the corporate operating segment.

c) Capital assets and licenses and patents by operating segments

Therapeutics
Protein Technology
Corporate

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December 31,
2012

December 31,
2011

$ 1,828
3,520
31

$ 5,379

$ 1,865
3,343
40

$ 5,248

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d) Acquisition of capital assets and licenses and patents by operating segments

Therapeutics
Protein Technology

Corporate

e) Total liabilities by operating segments

Therapeutics
Protein Technology

Corporate

Segmented information by geographic segment

f) Total assets by geographic area

Canada
United States
United Kingdom

g) Capital assets and licenses and patents by geographic area

Canada
United States
United Kingdom

December 31,
2012

December 31,
2011

$ 204
702
5

$ 911

$ 301
695
30

$ 1,026

December 31,
2012

December 31,
2011

$ 1,315
9,739
6,118

$ 17,172

$ 1,910
9,110
6,240

$ 17,260

December 31,
2012

December 31,
2011

$ 14,420
2,968
5,603

$ 22,991

$ 3,450
1,717
3,525

$ 8,692

December 31,
2012

December 31,
2011

$ 1,978
1,569
1,832

$ 5,379

$ 2,059
1,566
1,623

$ 5,248

h) Acquisition of capital assets and licenses and patents by geographic area

December 31,
2012

December 31,
2011

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Canada
United States
United Kingdom

$ 209
169
533

$ 911

$ 426
356
244

$ 1,026

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i) Revenues by location

United States
Austria
Switzerland
China
Taiwan
Germany
United Kingdom
South Korea
Canada
Other countries

December 31,
2012

December 31,
2011

$ 12,642
3,239
2,407
2,188
2,000
594
135
36
35
45
$ 23,321

$ 15,836
13
892
131
-
23
369
-
-
325
$ 17,589

Revenues are attributed to countries based on the location of customers and not the location of subsidiaries.

The Company derives significant revenues from certain customers. During the year ended December 31, 2012, there were three customers who
accounted for 47% (18%, 15% and 14% respectively) of total revenues in the protein technologies segment. In 2011, there were two customers
who accounted for 80% (57% and 23% respectively) of total revenues, also in the protein technologies segment.

30. GOVERNMENT ASSISTANCE

The Company has received government grants from the Isle of Man Government for operating and capital expenditures.

For grants received in 2005 and 2006, amounting to $1,073 and $80, respectively, the Isle of Man government reserves the right to reclaim in part
or all of the grants should the Company leave the Isle of Man according to the following schedule – 100% repayment within five years of receipt,
then a sliding scale after that for the next 5 years – 6 years 80%, 7 years 60%, 8 years 40%, 9 years 20%, 10 years 0%.

The grants received amounted to $93 in 2012 and $16 in 2011 and were recorded as a reduction of the related capital assets.

No provision has been made in these consolidated financial statements for any future repayment relating to the above agreement.

31. CONTINGENT LIABILITIES

In 2009, the Company was served with a lawsuit relating to a claim for payment for unpaid services for a total of $195. On the basis that the
Company did not feel it was probable that this claim would be successful, no provision was made in the consolidated financial statements. During
the year ended December 31, 2012, the Company received confirmation from its legal advisor that, pursuant to a judgment, the claim has been
dismissed.

During the year ended December 31, 2012, the Company was served with a lawsuit in the Federal Court of Canada (Court) relating to a claim for
infringement of two patents held by a third party plaintiff. The Company instructed outside legal counsel to prepare, serve and file a statement
of defence on the infringement claims, in addition to a counterclaim requesting that the Court declare both patents invalid and unenforceable.
Since the plaintiff has claimed unspecified damages and none of the allegations in the claim provide any information as to the basis upon which
the plaintiff would be claiming monetary compensation and on the basis that the Company does not believe that this claim will be successful, the
Company has not taken a provision in the consolidated financial statements.

32. SUBSEQUENT EVENTS
On January 7th, 2013, the Company received the $9,822 share subscription receivable and 48,147,053 common shares were issued under a private

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placement agreement.

On February 20, 2013, the Company completed its renegotiation of its long-term debt provided by shareholders, resulting in the postponement of

related payments from July 2013 to July 2014 amounting to $4,000 (see note 18).

Also, subsequent to December 31, 2012, the Company again renegotiated its working capital grants with the Isle of Man Government Department
of Economic Development, resulting in the balance now being offset in the future against capital grants receivable from the Isle of Man
Government with any balance owing on March 31, 2014, repayable in cash.

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On March 7, 2013, the share purchase loan to an officer of $450 was extended having a new maturity date of March 31, 2016, subject to approval
by the Company’s shareholders. As of February 15, 2013, the loan bears interest at a rate equal to the Bank of Canada’s prime rate plus 1% per
annum. If the share price is equal or higher than $2.00 per share for 10 consecutive trading days, the Company may request that the officer repays
all outstanding amounts under the loan including interest within 30 days following such request.

On March 7, 2013, the Company and Invhealth Holding Inc. entered into a Re-Amended and Restated Loan Agreement pursuant to which the

term of the loan was changed from March 31, 2013 to March 31, 2016, subject to shareholder approval.

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Positions – Committees

(1) Audit & Risk Committee

Paul Mesburis (Chairman)
G.F. Kim Anthony
Robert Lacroix
Nancy Orr

(2) Compensation & HR Committee

Nancy Orr (Chairman)
Diane Liguori
John Moran
Benjamin Wygodny

(3) Corporate Governance Committee

Louise Ménard (Chairman)
G.F. Kim Anthony
Diane Liguori
Bruce Wendel

ManageMent teaM

BOaRD OF DIReCtORS

Pierre Laurin
President and
Chief Executive Officer
ProMetic Life Sciences Inc.

Steven Burton
Chief Executive Officer
ProMetic BioSciences Ltd

Bruce Pritchard
Chief Financial Officer
ProMetic Life Sciences Inc.

Patrick Sartore
Senior Legal Counsel,
IP and Corporate Secretary
ProMetic Life Sciences Inc.

tom chen
Senior Vice-President,
Product and Asia/Pacific
Development
ProMetic BioTherapeutics, Inc.

timothy hayeS
Vice-President,
Product Development,
Quality and Regulatory Affairs
ProMetic BioTherapeutics, Inc.

chriStoPher Penney
Chief Scientific Officer,
Therapeutics
ProMetic BioSciences Inc.

Frédéric dumaiS
Director, Communications
and Investor relations

G.F. kym anthony (1) (3)
Chairman of the Board
ProMetic Life Sciences Inc.
Executive Chaiman
Hybrid Partners Ltd.

roBert Lacroix (1)
Senior Vice-President
CTI Capital Securities Inc.

Pierre Laurin
President and
Chief Executive Officer
ProMetic Life Sciences Inc.

diane LiGuori (2) (3)
Executive Management
Consultant

LouiSe ménard (3)
President
Groupe Méfor inc. and
Corporate Director

PauL meSBuriS (1)
Chartered Accountant

John moran (2)
Vice-President,
Clinical Affairs
Home Modalities, Da Vita Inc.

nancy orr (1) (2)
Consultant in the energy and
recycling sectors

Bruce WendeL (3)
Retired Executive and
Consultant in Pharmaceutical
Industry

BenJamin WyGodny (2)
President
Angus Partnership and
3188795 Canada Inc.

c
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CORPORATE INFORMATION

HEADQUARTERS
ProMetic Life Sciences Inc.
(Canada)
531 Boulevard des Prairies, Bldg. 15
Laval, Quebec H7V 1B7
Canada
Tel:
Fax:
Email:
Web:

+450.781.0115
+450.781.4477
info@prometic.com
www.prometic.com

Investor Relations
Frédéric Dumais, B. Comm., L.L.B.
+450.781.0115 ext. 2234
Tel:
f.dumais@prometic.com
Email:
investor@prometic.com
Email:

THERAPEUTICS
ProMetic BioSciences Inc.
(Canada)
500 Cartier Blvd. West, Suite 150
Laval, Quebec H7V 5B7
Canada
Tel:
Fax:
Email:

+450.781.1394
+450.781.1403
info@prometic.com

BIOSEPARATION TECHNOLOGIES AND
PLASMA-DERIVED THERAPEUTICS
(BIOLOGICALS)
ProMetic BioSciences Ltd
(United Kingdom)
R&D
211 Cambridge Science Park
Milton Road
Cambridge CB4 0WA
United Kingdom
Tel:
Fax:
Email:
On-line Shop: www.prometicbiosciences.com

+44(0)1223.420.300
+44(0)1223.420.270
sales@prometicbiosciences.com

Manufacturing
(United Kingdom)
Freeport
Ballasalla, Isle of Man
IM9 2AP
British Isles
Tel:
Fax:
Email:

+44(0)1624.821.450
+44(0)1624.821.451
sales@prometicbiosciences.com

North American Sales Office
+301.251.8821
Tel:
+301.251.8826
Fax:
sales@prometicbiosciences.com
Email:

Manufacturing
(Canada)
531 Boulevard des Prairies, Bldg. 15
Laval, Quebec H7V 1B7
Canada
Tel:
Fax:
Email:

+450.781.0115
+450.781.4477
sales@prometicbiosciences.com

ProMetic BioTherapeutics, Inc.
(United States)
1330 Piccard Drive, Suite 201
Rockville, Maryland 20850
USA
Tel:
Fax:
Email:

+301.917.6320
+301.838.9023
info@prometic.us

AUDITORS
Ernst & Young LLP
800 René-Lévesque Blvd. W., Suite 1900
Montreal, Quebec H3B 1X9
Canada

TRANSFER AGENT AND REGISTRAR
Computershare Trust Company of Canada
1500 University Street, Suite 700
Montreal, Quebec H3A 3S8
Canada

LISTING: TORONTO STOCK EXCHANGE
Symbol: PLI
Outstanding shares as of December 31, 2012:
432,531,873

ANNUAL MEETING OF SHAREHOLDERS
Wednesday, May 8, 2013 at 10:30 (EDT)
Auditorium of the Montreal Exchange
The Stock Exchange Tower
800 Square Victoria, 4th floor
Montreal, Quebec H4Z 1A9
Canada

ANNUAL INFORMATION FORM
The 2012 Annual Information Form of
ProMetic Life Sciences Inc. is available upon
request from the Company’s Head Office or
by accessing the SEDAR (System for Elec-
tronic Document Analysis and Retrieval) site,
www.sedar.com.

On peut se procurer la version française du
présent rapport annuel en s’adressant au
service des relations avec les investisseurs de
ProMetic Sciences de la Vie inc. ou sur notre
site internet à l’adresse www.prometic.com.

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