In November 2005 Virax commissioned Bryan, Garnier & Co., a respected European Investment Bank, to prepare an independent investment report. (Report)

The Report can be downloaded by clicking on the link above. The Company had previously announced that it had intended releasing to the market the Investment Summary from the Report, however, the Company has been advised that this would contravene the current policy of the Australian Stock Exchange. Accordingly, the Investment Summary will be mailed to Shareholders.

The Report has been prepared by Bryan, Garnier & Co. based on publicly available information and the experience and expertise of the analyst. Virax has not disclosed to Bryan, Garnier & Co any material information that has not been made available to the market.

Further information regarding Bryan, Garnier & Co. is provided below.



About Sponsored Research
Many small and mid cap companies (across all sectors) lack research coverage due to low market capitalization and lack of regular corporate newsflow relative to larger companies.

Scarcity of research coverage can lead to:

• inefficient pricing of stocks, often below intrinsic value
  
• relative undervaluation compared to analyst-covered competitors
  
• low trading volumes
  
• a narrow and domestic investor audience
  
• poor levels of institutional holdings
  

These potential outcomes can lead to a vicious circle in which it becomes increasingly harder to generate analyst interest.

Sponsored research is becoming more recognized by investors as it fills the market’s need for objective information. The practice is known and accepted for rating services such as Standard and Poors, and the Australian Stock Exchange has recently canvassed the idea of sponsoring stock broker research of small companies in an attempt to boost liquidity.

Virax’s sole payment was a fee of Euro 25,000 (AU$40,000) for the preparation of the report. This amount was a fixed fee that was in no way linked to the findings of the research.


About Bryan, Garnier & Co
Bryan, Garnier & Co (Bryan Garnier) is a European Investment Bank that aims to bridge the gap between life sciences and finance. Bryan Garnier has a healthcare practice that specialises in serving the complex and broad biotech sector through in depth industry knowledge combined with finance expertise. The healthcare practice comprises medical professionals with investment banking experience who can advise biotech companies as well as their investors.

Bryan Garnier’s corporate research program provides a service to small and mid-cap companies that would otherwise lack quality research coverage. It provides high quality, objective institutional quality sponsored research.

Bryan Garnier research is based entirely on publicly available information and the experience and expertise of the analysts. Analysts are free to develop an opinion independently of the sponsor by ensuring that agreements are based on fixed fee amounts that are not in any way tied to valuation outcome, order volumes, trading volumes, brokerage activity, or investment banking business.

Dr Kris Motmans, the author of the research report, has a dual scientific and financial professional background. He gained industry experience as IP manager at Johnson & Johnson and later as the CEO of Beta-Cell nv, a Belgian cell therapy company, where he successfully completed a second financing round. He is co-founder and board member of MedInvents nv, a private Belgian medical devices company active in the oncology field. Through his management consultancy firm, Life Sciences Consulting bvba, he assisted several early stage healthcare companies in finance, IP and general operations.

Dr. Motmans gained his financial experience as a biotech analyst at Puilaetco Private Bankers in Brussels, Belgium, a member of the KBL Group covering companies such as Acambis, Crucell, Transgene, Innogenetics, Pharming, Morphosys and Antisoma. He also acted as scientific advisor for the Puilaetco Innovative Healthcare Fund, a specialized healthcare mutual fund.

Since 2004, he acts as a scientific advisor for the Corporate Finance department at Bryan, Garnier & Co (Paris, France) where he is responsible for the Corporate Research activities. He holds a PhD in Medical Sciences and received his biomedical training at the Universities of Ghent and Hasselt (Belgium) and at Harvard Medical School (Boston, US). He is fluent in Dutch, English and French, and has a solid knowledge of German.