Announcement PDF RAD RADIOPHARM THERANOSTICS Appendix 4E and Audited Financial Report: Year Ended 30 June 2023 Radiopharm Theranostics Limited Appendix 4E 30 June 2023 Radiopharm Theranostics Limited 57 647 877 889 30 June 2023 30 June 2022 Name of entity: ABN: Year ended: Previous period: Results for announcement to the market $ Revenue for ordinary activities Loss from ordinary activities after tax attributable to members Net loss for the year attributable to members Up Up Up 100.0% 13.8% 13.8% to to to 292,359 34,611,194 34,611,194 Distributions No dividends have been paid or declared by the group for the current financial year. No dividends were paid for the previous financial year. Explanation of results Please refer to the review of operations and activities on pages 2 to 9 for explanation of the results. Additional information supporting the Appendix 4E disclosure requirements can be found in the review of operations and activities, directors' report and the financial statements for the year ended 30 June 2023. Net tangible assets per security Net tangible asset backing (per share) 30 June 2023 Cents 30 June 2022 Cents (3.82) 2.70 Changes in controlled entities On 3 March 2023, Radiopharm Theranostics Limited announced the acquisition of Pharma15 Corporation through its wholly owned subsidiary, Radiopharm Theranostics (USA) Inc. There have been no other changes in controlled entities during the year ended 30 June 2023. Other information required by Listing Rule 4.3A a. Details of individual and total dividends or distributions and dividend or distribution payments: b. Details of any dividend or distribution reinvestment plans: c. Details of associates and joint venture entities: N/A N/A Radiopharm Theranostics Limited Appendix 4E 30 June 2023 (continued) Name of entity Radiopharm Ventures LLC Place of business/ Ownership country of interest held incorporation by the group 2023 % United States 51 On 9 July 2022, Radiopharm Theranostics (USA) Inc. and The University of Texas MD Anderson Cancer Center formed Radiopharm Ventures, LLC, a joint venture to develop novel radiopharmaceutical therapeutic products for cancer. The joint venture will focus initially on developing products based on MD Anderson intellectual property. d. Other information N/A Audit The financial statements have been audited by the group's independent auditor who has issued an unmodified opinion with a material uncertainty in relation to going concern. Radiopharm Theranostics Limited ABN 57 647 877 889 Audited financial report - 30 June 2023 Corporate directory Review of operations and activities Directors' report Directors and company secretary Principal activities Dividends Review of operations Significant changes in the state of affairs Events since the end of the financial year Likely developments and expected results of operations Environmental regulation Information on directors Company secretary Meetings of directors Audited Remuneration report Shares under option Insurance of officers and indemnities Proceedings on behalf of the company Non-audit services Auditor's independence declaration Rounding of amounts Auditor's Independence Declaration Financial statements Independent auditor's report to the members 1 2 10 10 10 10 10 10 11 11 11 11 13 14 15 26 26 26 27 27 27 29 30 87 Radiopharm Theranostics Limited Corporate directory Mr Paul Hopper Executive Chairman Directors Mr Riccardo Canevari CEO and Managing Director Dr Michael Baker Non-Executive Director Mr Ian Turner Non-Executive Director Ms Hester Larkin Non-Executive Director Dr Leila Alland Non-Executive Director Secretary Mr Phillip Hains Mr Nathan Jong Principal registered office in Australia Level 3, 62 Lygon Street Carlton VIC 3053 Australia Telephone: +61 (0)3 9824 5254 Facsimile: +61 (0)3 9822 7735 Share and debenture register Automic Pty Ltd Level 5, 126 Phillip Street Sydney NSW 2000 +61 (0)2 9698 5414 Auditor Grant Thornton Audit Pty Ltd Collins Square Tower 5, 727 Collins Street Melbourne VIC 3008 Telephone: +61 (0)3 8320 2222 Solicitors McCullough Robertson Level 11, Central Plaza Two 66 Eagle Street Brisbane QLD 4000 Telephone: +61 (0)7 3233 8888 Bankers National Australia Bank 330 Collins Street Melbourne VIC 3000 Stock exchange listings Radiopharm Theranostics Limited shares are listed on the Australian Securities Exchange (ASX: RAD) Website www.radiopharmtheranostics.com Radiopharm Theranostics Limited 1 Review of Operations & Activities Year ended: 30 June 2023 Radiopharm Theranostics Limited is developing a world‐class platform of radiopharmaceutical and nuclear medicine products for both diagnostic and therapeutic uses. Financial Review The group reported a loss for the year ended 30 June 2023 of $34,611,194 (30 June 2022: $30,420,008). This increased loss compared to the comparative period is due to the increase in clinical trial and research activities undertaken by the group during the year. The group’s net assets decreased to $45,579,425 (30 June 2022: $62,962,719). This is primarily as a reduction in the group's cash and cash equivalents, which have been used to progress the group's research and development activities in the year. As at 30 June 2023, the group had cash reserves of $11,699,066 (30 June 2021: $26,979,105). During the year, the group acquired additional intellectual property (MAb and Pharma15), increasing intangible assets by $8,167,712. Further information on these acquisitions can be found in the financial statements. CLINICAL PROGRESS Pivalate delivers positive Phase 2 data in brain metastases trial During October 2022, RAD announced that Imperial College London's F‐18 Pivalate (RAD 101) achieved successful Phase 2a data in patients with brain metastases, with significant tumour uptake that was consistent and independent from the tumour origin. The trial findings included: • F‐18 Pivalate PET shows high uptake regardless of origin of primary tumour • F‐18 Pivalate can be used to monitor cerebral metastases e • Patients without previous external beam radiation show higher tumour uptake, while those previously treated show a trend towards lower uptake Further information released the next month showed the additional benefit of PET scan with F‐18 Pivalate in detecting metabolic activity in the brain metastases, providing higher quality images. Radiopharm acquired an exclusive worldwide licence for the Pivalate platform technology from Cancer Research Technology Limited and Imperial College London. This has been recognised as an intangible asset as detailed in the financial report. Radiopharm Theranostics Limited 2 RAD secures IND approval for Phase 1 trial of αVβ6 Integrin (RAD301) RAD received US Food and Drug Administration (FDA) Investigational New Drug Application (IND) approval for its αVβ6 Integrin (RAD301) technology late in 2022. The approval allows for the commencement of a Phase 1 imaging trial in ambulatory patients with pancreatic cancer. Pancreatic cancer presents a high unmet medical need with current imaging options having several limitations. RAD301 technology has already generated significant clinical data from 88 patients dosed to date in various geographies. HER2 nanobody (RAD201) demonstrates favourable tumor targeting in breast cancer patients In December 2022, RAD announced positive imaging data had been published regarding its HER2 nanobody (RAD201) in the prestigious European Journal of Nuclear Medicine & Molecular Imaging. The publication indicated that RAD201 has a favourable biodistribution and showed high accumulation in all active HER2 positive tumor sites. It demonstrated a high target‐to‐background ratio, favourable tumor targeting and rapid blood clearance. The publication also supported previous data regarding the safety profile for use of RAD201 in humans. In conclusion, the publication highlighted that RAD201 is a ‘promising non‐invasive tool for discriminating HER2 status in metastatic (breast) cancer, regardless of ongoing HER2‐targeted antibody treatment’. This is made possible due to RAD201’s ability to bind to a different part of the HER2 receptor. KEY STRATEGIC AGREEMENTS, ACQUISITIONS AND JOINT VENTURES Strategic agreements with Lantheus and NanoMab In August 2022, Radiopharm announced it had entered into a collaboration agreement with well‐ regarded diagnostic and imaging company Lantheus for the mutually beneficial development of NM‐ 01, a nanobody made using genetically engineered camelid derived single domain antibodies that can be labelled with radioisotopes for the potential diagnosis and treatment of multiple tumor types. Radiopharm and Lantheus will also have the option to expand their collaboration to additional assets and potential licencing opportunities in Radiopharm’s pipeline under the agreement. Separately, in a concurrent agreement, Radiopharm acquired the imaging rights of NM‐01 from NanoMab for the strategic Chinese market and worldwide IP rights for any therapeutic use. Joint venture launched with MD Anderson to develop novel radiopharmaceuticals In September, Radiopharm and The University of Texas MD Anderson Cancer Center announced the launch of Radiopharm Ventures, LLC, a joint venture company created to develop novel radiopharmaceutical therapeutic products for cancer. The joint venture brings together Radiopharm’s expertise in the development of radiopharmaceutical products and MD Anderson’s innovative and proprietary technologies in antigen discovery and molecular imaging. Radiopharm Theranostics Limited 3 As set out in the financial report, Radiopharm has determined it has control of Radiopharm Ventures LLC, which has consequently been consolidated in the financial statements. Through this arrangement, Radiopharm has obtained the rights to develop mAb which has been recognised as an intangible asset. Pharma15 acquisition adds next generation preclinical platform to RAD portfolio The Group’s wholly owned subsidiary, Radiopharm Theranostics (USA) Inc., entered into a binding agreement to acquire Pharma15 Corporation (Pharma15). This acquisition was completed on 3 March 2023. Pharma15 is a US‐based venture developing next‐generation therapeutic radiopharmaceuticals which seek to overcome resistance to prostate‐specific membrane antigen (PSMA) targeting cancer therapies currently available or in late‐stage development. In each case, the technologies exhibit highly specific targeting of receptors expressed on cancer cells, but not in healthy tissues. This selectivity may further limit toxicity in the new approaches to targeted radiotherapy in prostate cancer. As part of the agreement, Pharma15’s scientific co‐founder Professor David Ulmert and key opinion leader Professor Ken Herrmann joined RAD’s Scientific Advisory Board, and are spearheading development of the acquired technologies. Radiopharm partners with GenesisCare for radiopharmaceutical development Radiopharm made a joint announcement with leading global provider of integrated cancer care and theranostics research, GenesisCare, regarding a new two‐year strategic research collaboration to develop novel radiopharmaceuticals for some complex, hard‐to‐treat cancers. GenesisCare will conduct Phase 1 clinical trials in Australia to study the safety and tolerability of these radiopharmaceuticals in areas of high unmet need in oncology. The collaboration will see GenesisCare’s Contract Research Organisation (CRO) and Imaging Research Organisation (IRO) engaged to implement Phase 1 clinical trials in Australia, involving Radiopharm’s platform of radiopharmaceutical nanobodies. The trials to be conducted under the research partnership are: 1.Phase 1 trial involving Radiopharm’s proprietary nanobody from its Nano‐mAbs platform which targets the PDL1 expression in non‐small cell lung cancer 2.Phase 1 trial involving Radiopharm’s PTPu targeting peptide in Brain Tumors 3.Phase 1 trial involving Radiopharm’s PSA targeting antibody which targets free human prostate 4.kallikrein (PSA) in prostate cancer cells. 5.A Phase 1 trial using Radiopharm’s PSA targeting antibody targeting prostate cancer REGULATORY MILESTONES Orphan drug status and rare pediatric disease designation granted by FDA to RAD’s DUNP19 for osteosarcoma Radiopharm announced that the US Food and Drug Administration (FDA) granted Orphan Drug Designation for its DUNP19 technology for the treatment of osteosarcoma, a rare bone cancer that primarily affects children, adolescents and young adults. Currently surgery and chemotherapy are the only treatments available. Radiopharm Theranostics Limited 4 This designation can be granted for a drug or biologic product with the potential to diagnose, prevent or treat rare diseases and conditions. Recipients of this designation are typically entitled to benefits and incentives including tax credits for qualified clinical trials, exemption from user fees and a potential seven years of market exclusivity following the drug’s approval. The FDA also granted Rare Pediatric Disease designation for the Company’s DUNP technology. This program is aimed at advancing the development of drugs with the potential to treat serious, rare pediatric diseases. The designation allows companies to receive a priority review voucher (PRV) from the FDA when a marketing authorization is granted. This can be used to expedite approval or can be sold/transferred to other companies for use in the same manner. RAD 301 receives FDA Orphan Drug Designation In May 2023, Radiopharm announced that the US FDA had granted Orphan Drug Designation for Ga68‐ Trivehexin (RAD 301), a radiopharmaceutical technology for imaging patients with pancreatic ductal adenocarcinoma (PDAC). Radiopharm is developing Trivehexin as a unique radiopharmaceutical for both imaging and treatment of pancreatic cancer. Trivehexin, a proprietary peptide‐based molecule, targets αvβ6‐integrin, a cellular indicator of tumour invasion and metastatic growth. Its expression correlates with decreased survival in several carcinomas, and it is found in high density on most pancreatic carcinoma cells, rendering it a valuable diagnostic and therapeutic target. FDA Pre‐IND meeting supports an IND application for RAD 101 Radiopharm completed a successful pre‐IND meeting with the FDA concerning F18‐pivalate (RAD 101), representing a significant milestone towards the IND application for the Company's late‐stage clinical trials. Following positive guidance from the FDA, Radiopharm will file an IND application to commence a multi‐centre trial for imaging brain metastasis in Q3 CY 2023, with plans to administer the first patient dose by the end of 2023. SUPPLY AGREEMENTS Lu‐177 clinical supply agreements with ANSTO & SHINE Technologies In November 2022, Radiopharm secured an agreement with Australia's Nuclear Science and Technology Organisation (ANSTO) to supply RAD with isotope non‐carrier‐added lutetium‐177 (Lu‐ 177) for its trials in Australia. The isotope is being used in combination with Radiopharm’s propriety nanobody as part of a Phase I therapeutic dose escalation trial in patients with non‐small cell lung cancer. Prior to this Radiopharm and SHINE Technologies, a next generation fusion technology company, announced a clinical supply agreement where SHINE will also supply Radiopharm with isotope Lu‐177, to be used in Radiopharm’s clinical pipeline development of diagnostic and therapeutic radiopharmaceutical products. Lu‐177 is an important isotope utilised in multiple programs across the Company’s portfolio and is an important step in de‐risking RAD’s business plan. Radiopharm Theranostics Limited 5 Agreement with TerThera to supply Terbium‐161 isotope The Company signed a supply agreement with TerThera for the provision of the isotope Terbium‐161 (Tb‐161). This isotope will be combined with a unique peptide to create RAD 602, a radiotherapeutic agent designed by Radiopharm to target protein tyrosine phosphatase mu (PTPμ), a protein primarily found in cancer cells. Terbium‐161 has been identified as a promising isotope for targeted cancer therapy, due to its radiation characteristics, which include both Auger electrons and short‐range beta particles. The isotope's bioequivalence shows promise for comparable biodistribution to existing radiolanthanides and potential superiority over Lutetium‐177 (Lu‐177), due to its enhanced potency and efficacy in destroying tumour cells while sparing healthy tissue. Actinium‐225 supply agreement with NorthStar Medical Radioisotopes Radiopharm entered into a clinical supply agreement with NorthStar Medical Radioisotopes for the supply of Actinium‐225 to RAD. Actinium‐225 is key to development of several radiopharmaceutical products within Radiopharm’s broad portfolio of technologies, with this being the second supply agreement the Company secured for Actinium‐225. It will be utilised in drug trials involving targeted alpha therapy in multiple disease areas. CONFERENCE/SUMMIT PARTICIPATION Ga68‐Integrin (RAD301) selected for presentation at EANM In September 2022, the Company announced with TRIMT GmbH that its Ga68‐Integrin (RAD301) was selected for an oral presentation at the 35th Annual Congress of the European Association of Nuclear Medicine (EANM). Dr. Jana Rehm (University Hospital Carl Gustav Carus Dresden, Nuclear Medicine Dpt.) presented “PET/CT and PET/MR imaging with 68Ga‐TVH in patients with pancreatic cancer ‐ First clinical experience” within one of the top‐rated oral presentation sessions of the Scientific Program of EANM on Tuesday 18 October 2022. The clinical evaluation of Ga68‐Integrin in PDAC by the team of Prof. Dr. Jörg Kotzerke was also selected for the Congress Highlights. Pivalate phase II data presented at 34th EORTC/AACR/NCI Symposium in Barcelona Data from Imperial College London’s F‐18 Pivalate phase 2a imaging trial in brain metastases, funded by the Medical Research Council, was presented at the 34th EORTC/AACR/NCI symposium in Barcelona (26‐28 October 2022). The positive phase 2a data in patients with brain metastases demonstrated that F‐18 Pivalate PET showed high uptake regardless of the origin of the primary tumor and can also be used to monitor cerebral Participation in Jefferies Radiopharma Innovation Summit Radiopharm CEO Riccardo Canevari and COO Vittorio Puppo participated in Jefferies Inaugural Radiopharma Innovation Summit, held in New York City on April 3rd, 2023. Radiopharm Theranostics Limited 6 FINANCIAL / LISTING UPDATES R&D tax incentive received As part of the Australian Government’s R&D tax incentive, Radiopharm received a research and development (R&D) tax refund of A$1,555,196. The refund is in recognition of the company’s R&D activities during the 2022 financial year. Institutional and retail entitlement offer to raise $10m Radiopharm undertook a capital raising on 19 October 2022, comprised of an institutional and retail entitlement offer, to raise a total of $10m. The 1 for 3.55 accelerated non‐renounceable entitlement offer was conducted at A$0.14 per New Share, with participants receiving 1 new option for every New Share issued under the offer (exercise price of A$0.20, expiry 30 November 2026). Radiopharm Chairman, Paul Hopper, committed to subscribe for A$500,000 under the Offer and CEO, Riccardo Canevari, subscribed for approximately A$170,000. RAD initiates process for Nasdaq listing During February 2023 Radiopharm announced it had initiated the process to obtain a secondary listing on the Nasdaq Capital Market. The Company filed a registration statement on Form 20‐F with the US Securities and Exchange Commission and a listing application with Nasdaq. The listing process has not been finalised as at the date of this report. The Nasdaq listing will take the form of a Level 2 American Depositary Receipt program, with each American Depositary Share representing 100 ordinary shares, and does not involve the raising of any capital. The American Depositary Shares (ADSs) are expected to trade on Nasdaq under the ticker RADX. The Nasdaq listing will complement the existing primary listing of RAD shares on the Australian Securities Exchange (ASX). For and on behalf of the company Riccardo Canevari Managing Director and Chief Executive Officer Radiopharm Theranostics Limited 7 Material Risk Report Additional Information with regards to Risk Management and Key Risks There are various internal and external risks that may have a material impact on the Group’s future financial performance. The Group has processes in place to identify materials risks and to manage these effectively. The Board takes a proactive approach to risk management. The Board has oversight of the Audit & Risk Committee which is responsible for ensuring that risks, and opportunities are identified in a timely manner and that the Group’s objectives and activities are aligned with the risks and opportunities identified by the Board. The Audit & Risk Committee meets periodically to review the risk register and receive updates on and provides feedback to Management on the identification of risks and the progress/effectiveness of risk mitigation strategies. Material risks that could adversely impact the Group’s financial prospects are outlined below. These risks do not represent an exhaustive list of the risks Radiopharm is exposed to, nor are they in order of significance. Clinical Trial Risk The ability of the Group to commercialise its intellectual property is dependent on receiving approvals to conduct future clinical trials. Given the nature of the Group's activities, there is a risk that the clinical trials may not be successful. If the Group does not receive approval for clinical trials, or the clinical trials are not successful, this will impact on the Group's ability to commercialise its intellectual property. The Group mitigates this risk by having highly qualified and skilled personnel and consultants where required conducting clinical trials and liaising with regulatory and licensing authorities. Dependence upon key personnel Radiopharm depends on the talent and experience of its personnel as its primary asset. There may be a negative impact on Radiopharm if any of its key personnel leave. It may be difficult to replace them, or to do so in a timely manner or at a comparable expense. The Group mitigates this risk by ensuring key personnel are remunerated commensurate to the value they provide Radiopharm and also invested in the success of Radiopharm through the issuance of short and long term incentives. Competition The Biotechnology and Pharmaceutical industries are intensely competitive and subject to rapid and significant technological change. A number of companies, both in Australia and abroad, may be pursing the development of products that target the same markets that Radiopharm is targeting. The Company’s products may compete with existing alternative treatments that are already available to customers. In addition, a number of companies, both in Australia and abroad, may be pursuing the development of products that target the same conditions that the Group is targeting. Radiopharm Theranostics Limited 8 The Group mitigates this risk by completing extensive assessments periodically of their competitors and their progress to ensure that Radiopharm has a competitive advantage where possible. Requirements to raise additional funds The Group may be required to raise additional equity or debt capital in the future. As there is no assurance a raise will be successful when required, the group may need to reprioritise its operations. The Group mitigates this risk by closely monitoring their cash and cash equivalents and engaging in investment/funding opportunities as required. Risk of delay and continuity of operations Radiopharm may experience delay in achieving a number of critical milestones, including securing commercial partners, completion of clinical trials, obtaining regulatory approvals, manufacturing, product launch and sales. Any material delays may impact adversely upon the group including the timing of any revenues under milestone or sales payments. The Group mitigates this risk by closely managing timelines of critical milestones and actively engages with potential commercial partners and regulators. In addition, the Group is ensuring that all FDA and regulatory advice is carefully reviewed and implemented accordingly. Manufacturing Manufacturing processes may result in product batches not meeting minimum specifications, raw material components not being sourced to specification. The manufacturing process may encounter process issues not previously identified and controlled, and there may be non‐controllable disruptions to the operations of the products, contract manufacturers. These factors may lead to delay or non‐ supply of product and/or adverse regulatory outcomes. The Group mitigates this risk by working very closely with its suppliers to ensure scheduling fits forecast requirements and that the manufacturing processes are actively managed. New suppliers are subject to due diligence processes and key relationships are developed with regulatory agencies to support the Group in the event of supply chain disruption. Radiopharm Theranostics Limited 9 Radiopharm Theranostics Limited Directors' report 30 June 2023 Your directors present their report on the consolidated entity consisting of Radiopharm Theranostics Limited and the entities it controlled (Radiopharm Theranostics (USA) Inc and Radiopharm Ventures LLC) at the end of, or during, the year ended 30 June 2023. Throughout the report, the consolidated entity is referred to as the group. Directors and company secretary The following persons held office as directors of Radiopharm Theranostics Limited during the financial year and up to the date of this report, except where otherwise stated: Mr Paul Hopper, Executive Chairman Mr Riccardo Canevari, CEO and Managing Director Dr Michael Baker, Non-Executive Director Mr Ian Turner, Non-Executive Director Ms Hester Larkin, Non-Executive Director Dr Leila Alland, Non-Executive Director The following persons held office as company secretary of Radiopharm Theranostics Limited during the whole of the financial year and up to the date of this report, except where otherwise stated: Mr Phillip Hains Mr Nathan Jong Principal activities Radiopharm Theranostics Limited is an Australian research and development group. The aim of the group is focused on the development of radiopharmaceutical products for diagnostic and therapeutic uses in areas of high unmet medical need. Lead products under development by the group are Nano-mAbs and AVB6 Integrin. Dividends No dividends were declared or paid to members for the year ended 30 June 2023 (2022: none). The directors do not recommend that a dividend be paid in respect of the financial year. Review of operations Information on the operations and financial position of the group and its business strategies and prospects is set out in the review of operations and activities, which forms part of this directors' report, on pages 2 to 9 of this audited financial report. Significant changes in the state of affairs On 9 July 2022, Radiopharm Theranostics (USA) Inc. and The University of Texas MD Anderson Cancer Center formed Radiopharm Ventures, LLC, a joint venture to develop novel radiopharmaceutical therapeutic products for cancer. The joint venture will focus initially on developing products based on MD Anderson intellectual property. Radiopharm Ventures, LLC is a limited liability company jointly owned by Radiopharm Theranostics (USA) Inc. (a wholly owned subsidiary of Radiopharm) (51%) and MD Anderson (49%). The University of Texas MD Anderson Cancer Center has granted a license to Radiopharm Ventures for certain patent and technology rights for development and commercialisation. On 25 October 2022 Radiopharm Theranostics Limited participated in an institutional entitlement offer on the Australian Stock Exchange and in the process raised $5.8 million through the issue of 41,028,222 shares at $0.14. Additionally, 32,073,235 shares were issued at $0.14 via a rights issue raising an additional $4.5 million. On 14 February 2023, Radiopharm Theranostics Limited announced the initiation of the process to obtain a secondary listing on the Nasdaq Capital Market. The group has filed a registration statement on Form 20-F with the US Securities and Exchange Commission and a listing application with Nasdaq. On 3 March 2023, Radiopharm Theranostics Limited announced the acquisition of Pharma15 Corporation through its wholly owned subsidiary, Radiopharm Theranostics (USA) Inc.. Radiopharm Theranostics Limited 10 Radiopharm Theranostics Limited Directors' report 30 June 2023 (continued) Significant changes in the state of affairs (continued) In the opinion of the directors, there were no other significant changes in the state of affairs of the group that occurred during the year. Events since the end of the financial year No matter or circumstance has occurred subsequent to year end that has significantly affected, or may significantly affect, the operations of the group, the results of those operations or the state of affairs of the group or economic entity in subsequent financial years. Likely developments and expected results of operations The group aims to create value for shareholders through researching, developing and commercialising Radiopharmaceutical products. These development programs are not expected to generate revenues in the short-term, Long-term, and pending a successful development outcome, these development programs could increase shareholder value by many multiples. More information on these developments is included in the review of operations and activities which forms part of this directors' report. Environmental regulation The group is not affected by any significant environmental regulation in respect of its operations. I