Annual General Meeting27th October 2004

Highlights 2003-04

• Services– LabHotel development in Bioscience Innovation Centre– Bioscience VCT fees increase as investments made– Tek-Check due diligence product sales debut at £37,453– NBS account broadened to include 15 centres

• Fundraising– Significant new institutional shareholders– £1.8 million raised in institutional placing– Post year end: £2.3m placing - announced 24 September 2004

• Financial– Pre-exceptional loss in line with expectations– Reduction in staff and directors’ costs– Year-end cash increased by 24%– Market capitalisation increased from £2m to £29m

• ONCO 4400 series (ruthenium anti-cancers)– Ruthenium compounds show exceptional activity in difficult cancers– Notification of grant of EU and USA patents and new patents filed

• ONCO 0247 (pineapple protease anti-cancers)– Preclinical dosing studies and xenograft studies ongoing

• VIR 5103 (anti-HIV/AIDS ribozymes)– 75% reduction in HIV penetration in human blood cells demonstrated– High levels of penetration of therapy into human cells shown– Notification of EU patent grant– Further anti-viral ribozymes identified

• Genvax (vaccines for cancer, viral and bacterial diseases)– DNA vaccine joint venture company added to portfolio

MMI: What do we do?

• We develop drugs for major markets with unmet need – eg cancer, infection

• We source potential drugs through partnerships with universities, NHS, NBS, and other research institutions

• We aim to commercialise through partnerships with big pharma

• We focus on commercial milestones to accelerate return on investment

• We have a significant and growing portfolio of potential blockbusters

• We have an integrated and cost-effective business model

Accelerating Return On Investment

Value£ Million

Research Preclinical Phase I Phase II Phase III Marketing

MMI1,000’s

100’s

10’s

0

Client Case History:National Blood Service

15 Laboratories: London, Oxford, Cambridge, Bristol, Manchester etc

Technology audit Fee income, technology access

Commercialisation strategy fee income, technology access

Licensing projects fee income, contingency income

Potential spin-outs:• Viral therapies/diagnostics• Mab therapies/diagnostics• BSE/nvCJD diagnostic/therapy

fee income, equity

Actual spin-outs:• Cancer vaccines, Leukaemia therapies

Genvax

How Do We Develop Potential Blockbusters?

• Industry-experienced team targets acquires and develops products to address unmet need in major markets

• Internal development resources –BIC, LabHotel, patent strategy

• Industry-standard partners – Covance, Mewburn Ellis, Eversheds

• World-leading partners – Prof Sadler, Prof Stevenson, CXR

• Target multinational marketing partners – Internal Licensing skills

Market-Driven Pipeline

• Cancer therapy market $20bn, 16% growth

• Cancer product deals $100m - $2bn

• AIDS therapy market $6.3bn, 14% growth

• Viracept / Aguron – acquired by Pfizer

Company Name Focus Technology“Partners”

MMI % Share

Ownership

MMI Book Value

ONCOSENSE Cancer • Edinburgh University• Cancer Research UK• Cambridge University• Provalis / MMI

100% £2

VIRATIS Viruses • King’s College London• Queen Mary College London

50% £2

ENDOZYME Drug-resistantInfections

• Cambridge University• Novartis

100% £2

GENVAX DNA Vaccines

• Southampton University• CRUK/LRF

50% £2

The Portfolio

The Ideal Anti-cancer Drug ProfileFactor

Coverage

Compounds

Resistance

Toxicity

Patents

Efficacy

Mode of Action

Development Needs

Market potential

Ideal

Broad (platform)

Many

None

Low

Major territories

Long life

Good

Known

Established

> $2 billion

Platinum

Broad

3

Some

Significant

Expired

Good

Unknown

Established

$5 billion

Ruthenium

Broader (platform)

1000’s/100’s/15

Selected compounds overcome resistance

Designed out

EU/USA granted

Good/Better

Known

Established

$10bn?

Factor

Coverage

Compounds

Resistance

Toxicity

Patents

Efficacy

Mode of Action

Development Needs

Market potential

The Ideal Anti-viral Drug ProfileIdeal

Broad (platform)

Many

None

Low

Major territories

Long life

Good

Known

Established

> $2 billion

HAART

Specific

3 +

10% +

Significant

Short life

Medium

Known

Established

$7 billion

Viratis ribozymes

Specific (platform)

Several

Unlikely

Unlikely

EU/USA granted

Good

Known

Evolving

$10bn?

Expected Clinical ProgrammeCompany Product 2004/05 2005/06 2006/07

ONCOSENSE MMI/ONCO 4404 (Ruthenium) Phase I/II Phase II Phase III

MMI/ONCO 4412 (Ruthenium) Phase I/II Phase II Phase II/III

MMI/ONCO 4424 (Ruthenium) Phase I Phase II

MMI/ONCO 0247 (Protease) Phase I/II Phase II Phase III

MMI/ONCO 1600 (Endosialidase) Phase I

VIRATIS HIV / Ribozyme Phase I

ENDOZYME Endosialidase Phase I

GENVAX Leukaemia Vaccine Phase I/II

Prostate Cancer Vaccine Phase I/II

Colon Cancer Vaccine Phase I/II

DNA Vaccine Cassette Against Cancer Antigen

B-cell LymphomaMultiple MyelomaEpithelial Cancers

Cancer AntigenAlert signal from

Tetanus Toxin

DNA Vaccine Against An Infective Organism

Genvax Technology: DNA Vaccinelinks DNA for antigen (cancer or pathogen) to fragment of tetanus toxin

MuscleCell

Antibody response Cellular Response

PROTECTION AGAINST INFECTION

Genvax – Potential Markets

• Platform technology having broad application in multiple

indications e.g. many forms of cancer, anti-virals and anti-

bacterials

• Substantial markets– Vaccine market value: anti-infectives $5.9bn (2000) growing to $17bn (2010)1

– Cancer Vaccine Market value: currently $10bn

– DNA Vaccine market value: ‘$-multi-billon potential’2

1 Source: Datamonitor - Commercial Perspectives: Vaccines2 Source: Donner Corp Intl

Ruthenium Organometallic complexes

Pineapple proteases Endosialidase

(Edinburgh University)(Provalis plc /

Oncosense Ltd)(Novartis AG,

Cambridge University)

• Oncosense is a market driven company established by MMI as a vehicle to commercialise innovative cancer therapies

• Three unique technologies developed in own laboratory in Bioscience Innovation Centre (Cambridge) and through external contract research:

Oncosense

NH2 NH2

NH2

NH2

NH2 NH2

Compound Arene Ligand

RM175

HC11

AH078

Ruthenium

Ruthenium

• Novel class of patented anti-cancer agents discovered by Edinburgh University and Cancer Research UK

• Exclusively licensed worldwide to Oncosense Ltd

• To date 100 compounds synthesised and tested in vitro, 15 compounds have been identified to be more potent than carboplatin

• Activity demonstrated in a number of human cell lines; including lung, colorectal and ovarian carcinoma cells

• Activity demonstrated in xenograft models; human lung and ovarian carcinoma

• Active against platinum-resistant tumours and multi-drug resistant tumours

Ruthenium: Lung Cancer (A549) Xenograft model

0

1

2

3

4

5

6

7

8

9

10

0 10 20 30 40 50

Time from start of treatment (days)

Rel

ativ

e T

umou

r vo

lum

eControls

HC11 25 mg/kg ip d1;8;15

RM175 25 mg/kg ip d1;5

IC50 in vitro RM175 = 2 M, HC11 = 0.5 M

Ruthenium: Ovarian Cancer (A2780cis) Xenograft model

0

2

4

6

8

10

12

14

16

18

20

0 5 10 15

Day

Re

lativ

e T

um

ou

r V

olu

me

Control

Cisplatin

RM175

**

**

Ruthenium:Spectrum of activity for RM175 and AH078 is different!

Large cell lung

Breast

Lung

Melanoma

Breast

RM175 AH078

Potential News Flow• Oncosense

– Ruthenium clinical trials begin

• Genvax– Clinical trials results– Further clinical trials begin

• Viratis– New ribozymes for other viruses

• Service products– LabHotel®

– More fee income– More biobabies

Key Messages• Proven business model

– ‘Virtual’ outsourcing dynamics– Prudent approach to expenditure– Strong scientific relationships

• Potential blockbuster products in the global pharmaceutical arena– Oncosense (Cancer); Genvax (DNA/Cancer Vaccines); Viratis (HIV/AIDS)– Competitive product profiles

• Strong cash position– Recent successful fundraisings & shareholder support– Revenue ‘arm’

• Value enhancing ‘events’ over next 12 months– Substantive clinical data available– New clinical trials– Portfolio expansion

Annual General Meeting27th October 2004