Here are my personal notes/observations which might be of interest to those who were not able to make it to the meeting:

1). Quite a decent crowd at the meeting (approx 100-120).
2). Chairman confirmed that Relenza royalty ends late 2014
3). According to Mr CEO, LANI licensing – negotiation going well, expect news within 6 months.
4). ATO ruling on the capital return not yet forthcoming but once available will be posted on BTA’s website. Should come in time to assist shareholders file their 2010 tax return.
5). BTA needed more than 1 royalty generating product, hence the rationale for acquiring (assets only!) Prolysis Ltd (UK); and (the company) of MaxThera Inc (US). Both are in the business of anti-bacterial agents fighting “super bugs” in hospital. (In lay man’s terms what Mr CEO said)
6). When “retained earnings” turn positive (i.e. tax losses brought forward are wiped clean), likely to be this year due to substantial Relenza royalty, tax will be payable, and shareholders can expect franked dividends.
7). Company is very mindful of cash planning i.e. balancing internal cash requirements versus returns to shareholders. Will return cash to shareholders whenever possible.
8). Mr CEO cautioned the GSK’s 190m course CAPACITY INTENTION in that this should not be interpreted as production or achieved sales.
9). First Relenza, then LANI as 2nd generation anti-viral, and now comes FLUNET, the 3rd generation anti-viral. 4,000 times potency compared to Relenza. (This could be exciting)
10). Mr CEO cautioned against “gloating” over some AH1N1 strains which proved resistant to Tamiflu and suggested that this does not spell the end of Tamiflu.
11). He also confirmed the existence of 1 case of Relenza-resistant virus taken from a patient who recovered from the illness after being prescribed Relenza. More such cases can be expected in the future, he reckoned.
12). Mr CEO was very upbeat about the company, but I felt he was very condescending when fielding some questions from long time shareholders.
13). (Personally I think he is a bit arrogant in talking down to his investors – a bit of modesty is not out of place but I admire the way he could roll off his tongue words like laninamivir, neuraminidase inhibitor, etc…all in the same breath).
14). One cheeky shareholder pointed to a non-existent Note 35 referred to in the Directors’ declaration on page 55 of the Annual Report. Some red faces.
15). The same shareholder asked if the return of capital will now be affected as new shares will be issued to acquire the 2 new businesses. Mr Chairman said no, Mr CFO corrected him and said that new shares were being issued today which are entitled to the return of capital. (from 11.43 down to 11.18 cents per share).
16). Not a single question was raised of the remuneration report.
17). Mr Chairman and Mr CEO between them answered 4 main questions sent in by shareholders viz.
(a) Listing on NASDAQ – BTA consulted with Caliburn and made its decision that it is inappropriate at this time.
Reasons: need stock liquidity, need to Americanise company, may not work as 2 local companies have delisted from NASDAQ but Resmed doing well. On the other hand, BTA is encouraging offshore investors, and Mr CEO will be promoting BTA overseas.

(b) Dividends and Dividend Reinvestment
With royalty from Relenza, company is conscious about returning cash to shareholders after taking into account in-house requirements. Any return of cash to shareholders could come by way of dividends, return of capital or higher share price (share buyback)

(c) GSK promotion of Relenza.
Fear not. Just because Relenza is not constantly in the media does not mean GSK is not promoting it. They deal with public health officials, and discussions are seldom made public. Mr CEO has every confidence in Andrew Witty and his team at GSK.

(d) LANI development and potential cash flows to BTA.
This question was missed completely but the topic was touched on earlier in the Mr CEO’s opening address.