Welcome to Arana Therapeutics

We are a global company working in the fast-growing antibody therapeutics sector created by the merger of Peptech Limited and EvoGenix Limited.

Arana’s vision is to improve patients’ lives by developing new generation products and platforms for the treatment of inflammatorydiseasessuch as rheumatoid arthritis and cancer.

The business is focused on expanding and accelerating the development of its internal clinical pipeline, leveraging its technology platforms to in-license new drug candidates and seeking commercial partners at the optimum stage of drug development.

As you will see from this report, it has been an exciting year and Arana continues to make significant progress.

The future

A major milestone ahead for Arana is the initiation of Phase II clinical trials of lead rheumatoid arthritis & psoriasis compound ART621
Arana anticipates that pre-clinical testing of ART010 for bone cancer during 2008 will lay the foundation for a Phase I clinical trial in 2009
Within three years, Arana expects to have 2-3 products at late stage and 2-3 products at early stage clinical trials or Investigational New Drug stage, and 3-4 pre-clinical programs
Arana will utilise its technology platforms to accelerate the development of lead compounds within its pipeline
Management is focused on negotiating new commercial partnerships to extract optimum value at the end of Phase II clinical trials

Arana’s shareholders stand to benefit from the company’s strong cashflows, diverse product and platform portfolio and the global scale created by the new company.

The New Company has:

• An enhanced, deep pipeline of differentiated products that target high value markets

• A lead anti-inflammatoryproduct heading into Phase II trials in 2008 (ART621)

• Core capabilities in innovative antibody and protein engineering technologies that act as a product engine to create new drugs

• A strong balance sheet ($169.0 million cash) and recurring revenues from international licensing and commercialisation agreements

• An experienced management team focused on executing revenue generating deals