growing 
specialising
globalising
IS Pharma plc annual report and accounts 2008 The strategy of the Group is to grow 
by combining the acquisition of 
products and companies with 
the development and marketing  
of these assets. 
International 
distributor 
network 
established.
i 
growing
i record results including first full year of profit
i  acquisitions of Acorus Therapeutics Limited 
and Speciality European Pharma International AG
i development pipeline progressing on schedule
i 
specialising
i expertise in pharmaceuticals and medical devices
i focus on launched and late-stage brands in niche areas
i development pipeline progressing on schedule operating areas
BrAndS
i Volplex
®
 (plasma substitute) 
i  Cryogesic
® 
(cryo-analgesic)
i  dermogesic
® 
(non-flammable 
cryo-analgesic)
i  Haemopressin
®
 (treatment 
for oesophageal varices) 
i  Isoplex
®
 (isotonic plasma 
substitute – in development)
i  AquiHex
® 
(antibacterial – 
in development)
BrAndS
i  Mysoline
®
 (treatment of epilepsy 
and essential tremor)
i  Acoranil
® 
(liquid antidepressant)
i  Mysoline
®
 Low (initial treatment 
for essential tremor and also used 
in epilepsy – in development) 
i 
globalising
i selling direct to hospitals in the UK
i  distributors in place in all key European countries 
and other developing markets
i low risk entry into US market through licensee
CrITICAL CArE nEUroL oGy onCoL oGy
BrAndS
i  Aloxi
®
 (treatment for 
chemotherapy induced 
nausea and vomiting)
i  Cryogesic
®
 (cryo-analgesic)
i  dermogesic
®
 (non-flammable 
cryo-analgesic) IS Pharma is a specialist 
hospital medicines group 
with expertise in both 
pharmaceuticals 
and medical devices.
TUrno VEr
£7.0m £1.7m 10.3p
ProfIT Af TEr TAx EArnInGS PEr SHArE
turnover
PAT EPS
£1.3m
£7.0m
£1.6m
£1.9m
£2.8m
turnover
PAT EPS
04 05 06 07 08
£(1.1)m
£1.7m
£(0.66)m
£(0.66)m
£(0.03)m
turnover
PAT EPS
04 05 06 07 08
(23.0)p
10.3p
(13.7)p
(13.5)p
(0.7)p
 1 highlights
 2 product portfolio
 4 chairman’s statement
 6 chief executive officer’s review
 11 board of directors
 12 report of the directors
 16 corporate governance
 18 remuneration report
 20 statement of directors’ responsibilities
 21 independent auditor’s report
 22 consolidated income statement
 23 consolidated balance sheet
 24 consolidated statement of changes in equity
 25 consolidated cash flow statement
 26 notes forming part of the consolidated accounts
 49 company balance sheet
 50  notes forming part of the company accounts
 53 notice of annual general meeting
 55 form of proxy
 IBC company information
04 05 06 07 08 IS Pharma plc / annual report and accounts 2008  1
highlights
oPeratIng
i  Acquisition of Acorus Therapeutics 
Limited (“Acorus”) 
 i   oversubscribed fundraising of £8m
 i    Synergistic portfolio with strong organic 
growth potential  
– integrated ahead of schedule
 i  First performance-related milestone triggered 
ahead of expectation
i  UK distribution rights for Aloxi – 
launch ahead of schedule
i  Transforming acquisition of Speciality 
European Pharma International AG 
(“SEPI AG”) post year end 
 i   acquired for £9.25m and up to a further £5m 
in contingent deferred consideration
 i   global critical care brand, Haemopressin, 
generating sales and in registration for eU and US
 i  oversubscribed fundraising of £10m and unused 
debt facility of £8m from HBoS
 i Integration on schedule
acquisitions
i  Strong sales performance across 
the full range of products
i  Commercial team established 
and driving rapid revenue and 
earnings growth
i  Development pipeline progressing 
on schedule – four further launches 
planned for 2008/09 
organic 
growth
i  International distribution network 
set up and already generating 
further sales growth
i  Low risk entry into US market 
through licensee
i  Distributors in place in all 
key European countries and 
other developing markets
International 
expansion
FInancIal
record results
including first full 
year of profit
revenUe
£7.0m
  more than doubled from  
£2.8m in 2007
ProFIt aF ter tax
£1.7m
 up from a loss of £0.03m in 2007
i  Basic earnings per share  
up to 10.3p (2007: loss of 0.7p)
ProFIt From oPeratIonS
£1.6m
  up from a loss of £0.06m in 2007 
(before share-based payments and amortisation)
net caSH PoSItIon
£2.3m
 improved from £1.4m in 2007
i  13% uplift in gross margin to 61% 
(2007: 48%) 2  annual report and accounts 2008 / IS Pharma plc
a rapidly evolving 
late stage portfolio.
product portfolio
Pre-regIStratIon/regIStratIon PHaSe
acoranil
®
mysoline
®
 low Isoplex
®
aquiHex
®
 2% Dermogesic
®
Pre-la UncH la UncHeD BranDS
an initial oral treatment 
for essential tremor and 
also used in epilepsy.
isotonic plasma substitute
a succinylated gelatin 
plasma substitute in 
a balanced electrolyte 
solution, providing fluid 
volume replacement 
and improvement in 
electrolyte balance.
a 2% chlorhexidine 
gluconate in aqueous 
solution to help 
reduce hospital 
acquired infections.
a liquid presentation 
of an antidepressant for 
patients that are unable 
to take tablets.
a fast-acting 
non-flammable 
vapocoolant spray 
for topical local 
analgesia prior 
to minor invasive 
procedures. Ideal 
for use in emergency 
environments.
i  a novel drug delivery system licensed to 
Plethora Solutions l imited in development 
for the treatment of interstitial cystitis.
oUt-lIcenSeD BranDS
micelle nanotechnology IS Pharma plc / annual report and accounts 2008  3
Products which are outside of the group’s core 
hospital focus or are in early stage of research 
are out-licensed, including the successful optiFlo™ 
catheter maintenance Solutions.
Haemopressin
®
volplex
®
la UncHeD BranDS
cryogesic
®
mysoline
®
aloxi
®
i
a succinylated gelatin 
plasma substitute 
indicated in the 
initial management 
of hypovolaemia and 
hypovolaemic shock.
a fast-acting vapocoolant 
spray for topical local 
analgesia prior to minor 
invasive procedures. 
cryogesic is also used 
to track the efficacy 
of epidural blocks.
an oral treatment for 
essential tremor and 
various forms of epilepsy.
a new generation 5-Ht3 
antagonist used for 
the prevention of nausea 
and vomiting associated 
with both moderately 
and highly emetogenic 
cancer chemotherapy.
a n injectable 
product for the 
treatment of bleeding 
oesophageal varices and 
hepatorenal syndrome.
i  a UK brand of a range of catheter irrigation 
solutions, distributed by Bard l td. 
i an international brand of catheter irrigation solutions. 
oUt-lIcenSeD la UncHeD BranDS
optiFlo contiSol
® 4  annual report and accounts 2008 / IS Pharma plc
I am pleased to present the results for the past financial year, during 
which we have continued to deliver against our strategy of building 
a significant international, specialist hospital medicines group. Revenue 
has more than doubled to £7.0m (2007: £2.8m) and we have delivered 
the Group’s first full year of profitability with profit after tax of £1.69m 
(2007: loss of £0.03m). It is the intention of the Board to continue 
to drive earnings growth using this strategy.
the year started with the acquisition of acorus therapeutics limited 
(“acorus”) in may 2007 which was accompanied by an oversubscribed 
equity fundraising. this development provided both a portfolio of 
products with a strong fit and an increased international presence 
in the form of a well-developed network of distributors. acorus was 
successfully integrated into the group ahead of schedule – a testament 
to the strong operational capabilities of our management team.
In parallel, we have seen strong organic growth from the existing 
product portfolio as well as significant progress in the Group’s 
new product pipeline.
Record results and continued 
delivery against strategy.
chairman’s statement
“ o ur focus on late-stage 
specialist products presents 
an increasingly attractive 
and logical investment.” IS Pharma plc / annual report and accounts 2008  5
Since the year end, we have completed the acquisition of 
Speciality European Pharma International AG (“SEPI AG”), a profitable 
Swiss-based business. this acquisition further strengthens our portfolio 
of specialist products. SePI ag was acquired for an initial consideration 
of £9.25m and up to a further £5m in deferred payments, conditional 
upon the achievement of certain regulatory and sales targets. 
t he integration of SePI ag is on schedule and both the cost 
and revenue synergies are being delivered as planned.
Outlook
Since the year end and the acquisition of SePI ag , we have restructured 
the group’s balance sheet, undertaken a seven for one share consolidation 
and changed the name of the business from maelor plc to IS Pharma plc 
to reflect the business model and strategy of the Group. These actions 
were approved at a general meeting of our shareholders on 21 april 2008.
our business model and strategy with their focus on late-stage 
specialist products present, we believe, an increasingly attractive 
and logical investment even in uncertain market conditions.
trading since the year end has been strong and is in line with 
expectations. We look forward to the coming year with confidence.
Geoff McMillan
Chairman
“ We have seen strong 
organic growth 
from the existing 
product portfolio.”
acqUISItIon
£10.0m
raised to acquire SePI ag
BanK F acIlIty
£8.0m
bank facility for further expansion 6  annual report and accounts 2008 / IS Pharma plc
During the course of a very exciting year, we have established 
ourselves as a dynamic, earnings-focused international specialist 
hospital medicines group. crucially, we are focused on late-stage 
and launched brands. our revenue and earnings growth is driven 
organically and by means of acquisitions.
The financial year 2007/08 provided proof of our strategy at work; 
with the organic growth of our established portfolio of drugs such as 
volplex and the transformational acquisition of acorus in may 2007 
and SePI ag after the year end in april 2008.
Driving a specialist hospital medicines business
the business is focused around late-stage and launched brands 
in three core areas of specialist hospital medicine:
i critical care
i neurology
i oncology
assets, which are out of this area either because they are 
early-stage (such as our proprietary technologies) or are more 
community-oriented, continue to be leveraged through 
partnerships as a “non-focus” portfolio.
the implementation of our strategy over the year can 
be summarised into the three categories of acquisition, 
organic growth and internationalisation.
Rapid growth in turnover 
and earnings continues.
chief executive officer’s review
“ We are creating a growing 
and significantly profitable 
group, both in the UK 
and internationally.” IS Pharma plc / annual report and accounts 2008  7
Acquisition
Acquisition of Acorus and of Aloxi from Helsinn Healthcare SA 
(“Helsinn”)
as announced in the Interim r esults in november 2007, the acquisition 
of acorus was successfully completed during the year and we were 
pleased to announce the completion of its integration ahead of schedule. 
as well as providing a rich portfolio of products, the acquisition has 
allowed us to establish our presence through a strong network of 
distributors in europe, as well as in South america and South africa.
In october 2007, we announced the acquisition of the UK distribution 
rights to aloxi from Helsinn. aloxi is a patented new generation 5-Ht3 
antagonist used for the prevention of acute nausea and vomiting 
associated with high and moderate emetogenic cancer chemotherapy, 
which is differentiated by its strength on initiation and the duration of 
its activity. aloxi obtained a centralised registration in e urope in 2005 
and is already being successfully marketed in 40 countries, with annual 
sales in 2006 of $323m worldwide, according to IMS figures. 
Acquisition of SEPI AG 
Since the year end, we have delivered another transforming, 
earnings-enhancing acquisition which has strengthened the 
company’s portfolio of products within our core areas of expertise 
and added to our late-stage product pipeline. SePI ag is a Swiss-based 
pharmaceutical company with a profitable portfolio of specialist 
hospital pharmaceutical products, highly synergistic with our existing 
portfolio. the business was acquired for an initial cash consideration 
of £9.25m and up to a further £5m in deferred consideration, conditional 
on SePI ag meeting certain regulatory criteria and sales targets.
the acquisition is fully aligned with IS Pharma’s stated strategy of 
building a focused late-stage pharmaceutical and medical devices 
business in the specialist hospital medicine sector:
i  it is a further step in the transformation of the business creating 
a growing and significantly profitable enlarged Group, driven in 
particular by existing and significant potential sales from the 
critical care drug, Haemopressin;
i  it consolidates a presence in the major european markets through 
a distributor network outside the UK and enables a low-risk step 
into the US market through a licensee; and
i  as a virtual business it can be readily integrated into IS Pharma’s 
existing infrastructure with minimal cost and distraction.
Haemopressin is a rapid-acting vasoconstrictor used in the treatment 
of oesophageal varices (varicose veins in the food pipe) and hepatorenal 
syndrome (late stage liver disease). As such, it is a very good fit for 
our critical care portfolio. Haemopressin is currently sold in germany, 
austria, Switzerland, Hungary, Korea, Pakistan and t aiwan. It is 
currently in the mutual recognition regulatory process in europe 
and we anticipate launches in some markets before the year end. 
We are also pleased to confirm that a rolling New Drug Application 
has recently been submitted in the US by our licensee, and that 
this will be subject to “fast track” review by the US Food and 
Drugs administration. 
“ Our revenue and 
earnings growth is 
driven organically 
and by means 
of acquisitions.” 8  annual report and accounts 2008 / IS Pharma plc
chief executive officer’s review continued
Organic growth
During the year our launched product portfolio increased following 
the acquisition of acorus.
We have continued to drive growth in volplex, our plasma substitute 
used in trauma to maintain blood volume, with sales up 41% and 
moving annual trend market share grown from 20% (march 2007) 
to 30%. 
We have also seen continued market growth from cryogesic, 
our market leading vapocoolant spray used before blood sampling 
and cannula insertion and we have identified and taken advantage 
of new applications for the product, particularly in paediatrics.
the growth of mysoline, our treatment for epilepsy and essential 
tremor, has been driven both in the UK market and by our 
internationalisation of the brand as we have been executing a 
planned programme of regulatory switches of mysoline in various 
international territories. We have rapidly developed a new dosage 
form of the product for the management of essential tremor, which 
affects 1 in 20 people over 40. the new dosage form, called mysoline l ow, 
is currently being sold as a “special” ahead of regulatory approval 
so that people suffering from essential tremor can get effective 
relief from their symptoms.
as noted earlier, during the year we also acquired the UK rights to 
aloxi, a new generation treatment for nausea and vomiting associated 
with chemotherapy from Helsinn. We were pleased that our commercial 
team was able to accelerate the integration process and achieve a 
successful launch, ahead of schedule, in February 2008. We have 
achieved encouraging sales, ahead of our expectations, in the three 
months since our launch.
Leverage ‘non-focus’ portfolio through efficient partnerships
maintaining focus on late-stage hospital specialist products 
whilst partnering “non-focus” assets, either because they are 
early-stage or sold in the community, continues to be a key 
strategy of the group. 
In october 2007 we announced a new agreement with 
Bard limited (“Bard”) for distribution of the optiFlo™ catheter 
maintenance solutions. the agreement which covers the UK 
and Ireland continues the very positive relationship that has 
seen the brand grow to become the UK market leader, with 
a 54% market share. 
our partnership with Plethora Solutions limited (“Plethora”), 
who licensed our proprietary micelle nanotechnology for application 
in the treatment for interstitial cystitis, continues positively. 
“ Key corporate 
and product 
acquisitions have 
been made and 
are combined 
with a rich 
product pipeline.” IS Pharma plc / annual report and accounts 2008  9
Focus on high value niches 
of critical care, neurology 
and oncology.
Pipeline of products
as well as the growth within our launched product portfolio, 
our pipeline of late-stage products continues to progress well: 
i  a quiHex, currently sold as a special while it is undergoing 
registration, is a water-based antibacterial with broad antimicrobial 
activity used to combat hospital acquired infections. It is targeted 
for launch during the first half of the financial year 2009/10;
i  Isoplex is a balanced electrolyte plasma substitute used as 
a fluid replacement as a sister product to Volplex in trauma or 
surgery. Development of the product is on schedule and launch 
remains forecast for the second half of the current financial year. 
This product – our own development – is a very good fit with 
our existing critical care portfolio and fulfils a currently unmet 
medical need;
i  acoranil is a product (currently sold as a special) we gained through 
the acquisition of acorus. It is used in the treatment of depression 
and has a particularly important niche in the treatment of nocturnal 
enuresis (bed wetting) in children. regulatory approval from the 
medicines and Healthcare products regulatory agency for the UK 
market has been obtained ahead of schedule and we plan to launch 
this product in the second half of the current financial year; and
i  along with our successful product cryogesic, we have developed 
Dermogesic which is a non-flammable version of the vapocoolant 
spray. It has obvious uses in accident and emergency situations and 
in ambulance and paramedic units and was launched on schedule 
in the first half of the current financial year.
International expansion
2007/08 has also seen the group developing international distribution 
channels by means of which our sales successes in the UK market can 
be replicated. We have focused these activities on the most significant 
international markets.
through the acorus acquisition earlier in 2007, we secured distribution 
and sales channels in the majority of european markets as well as 
South africa, South america and t urkey. Following the year end 
and the acquisition of SePI ag we have deepened our international 
network and now have distributors established in all target european 
markets as well as key developing markets.
The US is a significant healthcare market; however the Board is 
sensitive to the risks and complexity of establishing a presence in 
this territory. the acquisition of SePI ag has enabled us to take a 
low risk presence through a licensee for Haemopressin who will 
be responsible for both registration and commercialisation.
Financial summary
Financial results for the year ended 31 march 2008 have been 
delivered in line with recently upgraded expectations and are the 
first under International Financial Reporting Standards (“IFRS”), 
as adopted by the eU. 
revenue for the year to 31 march 2008 has more than doubled 
to £7.0m (2007: £2.8m).  10  annual report and accounts 2008 / IS Pharma plc
chief executive officer’s review continued
Outlook
trading since the year end has been strong and we have secured 
another transformational acquisition. the integration of SePI ag 
is on schedule and due to its almost virtual nature we have already 
managed to secure cost savings and synergies with our existing business.
as well as an oversubscribed placing of £10m and an £8m debt facility 
from HBoS, we have also undertaken a seven for one consolidation 
of our issued share capital and changed the name of the business to 
IS Pharma plc (aIm: ISPH) which better represents the core values of 
the business and its enlarged structure.
With a number of our pipeline products targeted for launch in 
this current financial year and the continued growth of our launched 
portfolio both in the UK and internationally, we look to the future 
with confidence.
Tim Wright
Chief Executive Officer
Financial summary continued 
gross margins increased from last year by 13% to 61% (2007: 48%), 
as a result of further efficiencies in manufacturing and supply and 
an expanded product mix.
The Group enjoyed its first ever full year of profit with a profit 
from operations for the year (before share-based payments and 
amortisation) of £1.62m (2007: loss of £0.06m). 
Retained profit for the year was £1.69m (2007: loss of £0.03m).
Basic earnings per share for the year were 10.3p per share 
(2007: 0.7p loss per share) following the seven for one 
share consolidation. 
group cash balances at 31 march 2008 were strengthened during 
the year to £2.3m compared with £1.4m last year. 
the post balance sheet acquisition of SePI ag was funded via an 
oversubscribed placing in difficult markets of £10.0m. At the same 
time we put into place an £8.0m debt facility through HBoS, which 
is as yet unused.
The Board is constantly reviewing its dividend policy and can confirm 
it will not be paying a dividend for the year ended 31 march 2008 
(2007: £nil).
revenUeS
more than 
doubled
groSS margIn
13%
Uplift in gross margin
marKet SHare
30%
volplex market share header
IS Pharma plc / annual report and accounts 2008  11
board of directors
leF t to rIgHt: Peter murray, nigel goldsmith, ann Hardy, tim Wright, geoff mcmillan and John gregory.
Geoff McMillan
Non-Executive Chairman
geoff mcmillan was appointed as non-executive chairman of IS Pharma 
in January 2006 following the retirement of his predecessor. currently 
he is Chief Executive Officer of Speciality European Pharma Ltd, 
a non-executive director of galapagos nv and executive in residence 
at advent v enture Partners. geoff has over 25 years’ experience within 
the pharmaceutical and biotechnology industry. Having worked for 
Smith and nephew, r oche, x enova group plc, elan and Biofocus plc, 
geoff brings a record of deal making, ranging from product and 
technology licensing to mergers and acquisitions and collaborative 
drug discovery to the Board of IS Pharma. 
Tim Wright
Chief Executive Officer
Tim Wright was appointed Chief Executive Officer of IS Pharma in 
September 2005. With over 20 years’ experience in the pharmaceutical 
industry, Tim has held senior commercial positions at Pfizer and 
SmithKline Beecham both domestically and internationally. Prior to 
IS Pharma tim was with elan Pharmaceuticals where he was general 
manager for Ireland and vice president, international marketing. During 
his time at Elan Tim was instrumental in the establishment, significant 
growth and ultimate successful divestment of their european business. 
Nigel Goldsmith
Finance Director and Company Secretary
nigel goldsmith joined IS Pharma in June 2006. He spent over 
nine years at KPmg, latterly as senior manager, prior to moving into 
industry in 1996. He now has over ten years’ experience working in 
the pharmaceutical and life sciences sectors, where he has held senior 
financial positions at Life Sciences International plc and prior to IS Pharma, 
at Almedica International Inc. where he was chief financial officer. 
Ann Hardy
Operations Director
ann Hardy was appointed to IS Pharma’s Board of Directors in 
July 2004. She has over 25 years’ experience in the pharmaceutical 
industry, where she has held senior positions in operations, quality and 
technical management for glaxo Pharmaceuticals, evans medical ltd 
and medeva Pharma l td. ann holds a BSc with Honours in Biology and 
has a Diploma in company Direction. She has responsibility for both 
product development and technical operations within IS Pharma. 
John Gregory
Non-Executive Director
currently non-executive chairman of enterprise vct plc and a non-executive 
director of Bluehone aim vct plc, John is also a non-executive director 
or chairman of a number of private companies and was, prior to 
these appointments, an executive director of noble Fund managers. 
John’s earlier career was in the city and included posts as a 
director of Singer & Friedlander Holdings and managing director 
of Henry ansbacher & co. He is chairman of the audit committee. 
Peter Murray
Non-Executive Director
With over 25 years’ experience in pharmaceuticals and medical devices, 
Peter left napp laboratories to form cambridge laboratories in 1987, 
leading it to profitability and international status prior to the sale of 
the company to a group of private investors. In 2000 he co-founded 
acorus therapeutics limited, specialising in niche hospital-orientated 
pharmaceutical products and medical devices. He is chairman of the 
r emuneration committee.  12  annual report and accounts 2008 / IS Pharma plc
The Directors present their report together with the accounts for the year ended 31 March 2008.
Results and dividends
The consolidated income statement is set out on page 22 and shows the profit for the year. The retained profit for the year ended 31 March 2008 
was £1.69m (2007: loss of £0.03m). No dividend will be paid in respect of the year (2007: £nil).
Principal activities
The Company is a holding company. The principal activities of its trading subsidiaries, IS Pharmaceuticals Limited and Acorus Therapeutics Limited, 
are the development and commercial exploitation of healthcare products and related activities.
Business review and future developments
The Chairman’s Statement and Chief Executive Officer’s Review, on pages 4 to 10, describe the Group’s activities and future developments.
Key performance indicators
All of the Group’s key performance indicators (“KPIs”) showed an improvement on last year. Revenues more than doubled over 
the prior year to £7.03m (2007: £2.84m) and retained profit increased to £1.69m (2007: loss of £0.03m). The cash balance increased 
to £2.30m (2007: £1.43m) and gross margins were uplifted to 61% (2007: 48%).
Principal risks and uncertainties
IS Pharma’s business is influenced by a range of factors, some of which may be beyond the control of the Group and its Board. The risk factors 
set out below are regularly reviewed by the Board in the course of operating its business and are considered carefully. 
There may be other risks which the Group is not aware of, which are not deemed to be material but turn out to be material.
I  Adverse information about one or more of IS Pharma’s products is received by the Group’s customer base, with a negative impact on 
demand for its products.
In the event of the Group becoming aware of any information relating to severe unexpected effects of any of IS Pharma’s products, it would 
immediately take steps to fully investigate these. In accordance with the responsibilities placed upon the Group by the Medicines and Healthcare 
products Regulatory Agency, IS Pharma would immediately notify its customers and/or withdraw those products from sale, as appropriate. Where 
these were proven to be false or ill-founded, IS Pharma would consider issuing information to its customers, communicating the facts to them. 
I IS Pharma experiences a significant increase in the cost of producing its product.
In the event of a significant increase in the cost of producing one or more of its products IS Pharma would seek alternative sources of supply 
at the earliest opportunity to mitigate the impact on its profitability.
I  The Group is unable to fulfil its commitments to supply its products, with adverse consequences for its customers.
IS Pharma has obligations under some of its key contracts to guarantee the supply of its products. The Group safeguards its ability to meet 
these obligations by closely managing its relationships with its suppliers, as well as by continuously reviewing its stock levels to ensure that 
these are adequate, while at the same time properly controlled.
I  A product liability or similar lawsuit is issued against IS Pharma, resulting in substantial financial penalties.
IS Pharma is confident that the robustness of the clinical trials process prior to the launch of its products minimises the risk of claims against 
the Group as a result of its products. The Group also continuously reviews the production quality of its products to ensure that this is consistently 
high. Were a claim to be lodged against the Group in respect of its products, IS Pharma believes that its product liability insurance would 
indemnify it in the majority of cases. 
report of the directors IS Pharma plc / annual report and accounts 2008  13
Financial instruments
Details of the use of financial instruments by the Company and its subsidiary undertakings are contained in note 3 to the consolidated accounts.
Post balance sheet events
Post balance sheet events are described in note 31 to the consolidated accounts.
Research and development
The Group carries out product development as part of its normal activities. Development costs which meet the relevant criteria under 
International Financial Reporting Standards (“IFRS”) are capitalised or are otherwise charged to the income statement.
During the year the Group expensed £118,930 (2007: £97,187) on research activities.
Charitable and political contributions
The Group seeks to support charitable organisations whose focus is linked to its business. During the year the Group made a £400 contribution 
to Cancer Research UK (2007: nil).
Equal opportunities in employment
IS Pharma provides equal opportunities for all its employees and potential employees regardless of their sex, sexual orientation, age, race, 
religion, ethnic origin, disability, marital status, colour and nationality.
Employee involvement
IS Pharma encourages involvement of employees in the Group’s performance through an annual, individual objective-setting process linked 
to the Company’s corporate objectives and through the operation of an employee share option scheme, details of which are set out in note 22 
to the consolidated accounts.
Policy and practice on the payment of trade payables
It is the policy of the Group that each of the companies in the Group should agree appropriate terms and conditions for its transactions with 
suppliers by means ranging from standard written terms to individually negotiated contracts. Payments should then be made in accordance 
with those terms and conditions, provided that the supplier has also complied with them. The number of days’ purchases outstanding at 
31 March 2008, was 83 (2007: 61).
Taxation
The Company is not a close company within the provisions of the Income and Corporation Taxes Act 1988.
Directors
The Directors of the Company during the year are set out in the Remuneration Report on page 18.
A third party indemnity provision for the benefit of the Directors was in force during the financial year.
T Wright and P Murray retire by rotation and, being eligible, offer themselves for re-election at the Annual General Meeting. 14  annual report and accounts 2008 / IS Pharma plc
report of the directors continued
Directors’ interests
The interests, all beneficial, of the Directors in the shares and share option schemes of the Company as recorded in the register of Directors’ 
interests at 22 April 2008 were as follows:
   Held/       
   outstanding Bought, Held/   Date  
  Held/ at 10 May (expired), outstanding   from  
  outstanding 2007 (lapsed), at Sale Exercise which  
  at 10 May restated (sold) 22 April price price options Expiry 
  2007 (note 1) or granted 2008 p p exercisable date
Executive
T Wright  
(Chief Executive Officer)       
Shares 1,000,000 142,857 80,714 223,571 N/A  N/A   N/A   N/A 
EMI options 
2
 500,000 71,429 — 71,429 N/A  70p  17.10.08 17.10.15
EMI options 
2
 550,000 78,572 — 78,572 N/A  70p 08.05.10 08.05.17
Unapproved options 
3
 2,678,425 382,632 — 382,632 N/A  70p  08.05.10 08.05.17
A Hardy  
(Operations Director)      
Shares 110,000 15,714 6,493 22,207 N/A  N/A   N/A   N/A 
EMI options 
2
 187,500 26,786 — 26,786 N/A  80.5p  05.04.08 05.04.15
EMI options 
2
 784,375 112,054 — 112,054 N/A  70p  08.05.10 08.05.17
Unapproved options 
3
 1,513,742 216,249 — 216,249 N/A 70p 08.05.10 08.05.17
N J Goldsmith  
(Finance Director) 
Shares 850,000 121,428 12,000 133,428 N/A  N/A   N/A   N/A 
EMI options 
2
 250,000 35,715 — 35,715 N/A 70p  30.08.09 30.08.16
EMI options 
2
 831,250 118,750 — 118,750 N/A  70p  08.05.10 08.05.17
Unapproved options 
3
 1,404,367 200,624 — 200,624 N/A 70p 08.05.10 08.05.17
Non-Executive       
H G McMillan (Chairman)       
Shares 850,000 121,428 24,000 145,428 N/A N/A N/A N/A
Unapproved options 
3
 310,702 44,386 — 44,386 N/A 70p 08.05.10 08.05.17
J H Gregory
Shares 219,211 31,315 18,000 49,315 N/A N/A N/A N/A
Unapproved options 
3
 310,702 44,386 — 44,386 N/A  70p  08.05.10 08.05.17
P Murray 
Shares 5,000,000 714,285 60,000 774,285 N/A N/A N/A N/A
1
 Restated following seven for one share consolidation approved on 21 April 2008.
2
 Executive Management Incentive (“EMI”) options – all options granted under this category are, for taxation purposes, treated as approved.
3
 Unapproved options – all options granted under this category are, for taxation purposes, treated as unapproved.
The market price of the shares at the end of the year was 13.25p (92.75p) (2007: 12.75p (89.25p)). The lowest price during the year was 
11.0p (77.0p) (2007: 5.88p (41.16p)) and the highest price was 15.25p (106.75p) (2007: 14.63p (102.41p)).
The figures in parentheses are the equivalent numbers following the seven for one share consolidation.
The market price of the shares at 22 April 2008 was 82.5p.
Except as mentioned above, there were no changes in the interests of the Directors in the share capital of the Company or Group, or any rights 
to subscribe thereto, between 31 March 2008 and 23 July 2008. IS Pharma plc / annual report and accounts 2008  15
Auditor
All of the current Directors have taken all the steps that they ought to have taken to make themselves aware of any information needed by the 
Company’s auditor for the purposes of its audit and to establish that the auditor is aware of that information. The Directors are not aware of 
any relevant audit information of which the auditor is unaware.
In line with good governance practices, the provision of audit services has been reviewed by the Audit Committee. As a consequence of 
that review the Board has decided to replace the current auditors, Baker Tilly LLP , and a resolution to appoint BDO Stoy Hayward LLP will be 
proposed at the Annual General Meeting.
By order of the Board
N J Goldsmith
Secretary
23 July 2008 16  annual report and accounts 2008 / IS Pharma plc
corporate governance
Compliance with the Combined Code
The rules of the Alternative Investment Market (“AIM”) do not compel the Company to comply with the Combined Code (“the Code”). 
Nevertheless, the Group fully endorses both the spirit and principles of the Code and seeks to comply wherever possible, whilst taking account 
of both its own size and its resources. Precisely how the Group has applied these principles is set out in the following statement.
Board of Directors
The Board meets at regular intervals, approximately every six weeks. The Company is committed to maintaining a balance of Executive and 
Non-Executive Directors and the Board consists of six members, three are Executive Directors, the remaining three, one of whom is Chairman, 
are Independent Non-Executive Directors. The Board believes that, given its size and complexity, it is not appropriate to specify a Senior 
Independent Director.
Non-Executive Directors are members of the Audit, AIM Compliance and Remuneration Committees. Their biographies on page 11 illustrate 
their relevant corporate and industry experience.
Given the Company’s limited resources and manpower, there is no separate Nominations Committee. However, any new appointments 
at Board level are considered and approved by the full Board. A detailed introduction to the activities of the Company is given to any new 
appointee who is also provided with any appropriate training deemed necessary. The Company Secretary, to whom all Directors have full 
access, attends all Board and Committee meetings.
Audit Committee
The Audit Committee, chaired by J H Gregory, who took over from P Murray on 4 May 2007, meets at least twice a year. The Finance Director 
is generally in attendance at those meetings and also acts as Secretary to the Committee. An invitation is extended to the auditor to attend 
meetings of the Committee in order to discuss related matters. On a formal basis, the Committee reviews with the auditor those reports to 
be issued by the auditor to the Directors.
The Audit Committee also undertakes a formal assessment of the auditor’s independence each year which includes:
I a review of the non-audit services provided to the Group and related fees;
I  discussion with the auditor of a written report detailing all relationships with the Company and any other parties that could affect 
independence or the perception of independence;
I  a review of the auditor’s own procedures for ensuring the independence of the audit firm and partners and staff involved in the audit, 
including the regular rotation of the audit partner; and
I obtaining written confirmation from the auditor that, in its professional judgement, it is independent.
An analysis of the fees payable to the external audit firm in respect of both audit and non-audit services during the year is set out in note 6 
to the consolidated accounts. 
AIM Compliance Committee
The Company has an obligation to comply with the London Stock Exchange Rules for Companies. Rule 31 requires IS Pharma plc to:
I have in place sufficient procedures, resources and controls to enable its compliance with the AIM Rules for Companies (“Rules”);
I seek advice from its nominated adviser regarding its compliance with these rules whenever appropriate and take that advice into account;
I  provide its nominated adviser with any information it requests in order for that nominated adviser to carry out its responsibilities under 
these rules and the AIM Rules for Nominated Advisers;
I ensure that each of its Directors accepts full responsibility, collectively and individually, for its compliance with these rules; and
I  ensure that each Director discloses without delay all information which it needs in order to comply with AIM Rule 17 insofar as that 
information is known to the Director or could with reasonable diligence be ascertained by the Director.
In order to ensure that these obligations are being discharged, the Board considers all AIM Compliance matters at each Board Meeting and reports 
back formally to its nominated adviser, confirming that it has made it aware of all relevant compliance matters.
Having reviewed relevant Board papers and met with the Company’s Executive Board and the nominated adviser to ensure that such is the 
case, the AIM Compliance Committee is satisfied that the Company’s obligations under AIM Rule 31 have been satisfied during the year 
under review. IS Pharma plc / annual report and accounts 2008  17
Internal control
At the present time, given the aforementioned limitations imposed by manpower and resources, there is no internal audit function. The Board 
is responsible for the Company’s system of internal control, which is designed to manage rather than eliminate the risk of failure to achieve 
business objectives; it can therefore only provide a reasonable and not an absolute assurance against material misstatements or losses.
Proper briefing of all Directors at Board meetings is considered an important issue and all Board papers are distributed in advance of those 
meetings; meetings are either adjourned or decisions deferred on occasions when the Board seeks the provision of further information upon 
which to base its decisions. There also exists a formal schedule of matters specifically reserved for decisions by the Board.
During the year the Directors have reviewed and are satisfied with the adequacy of the Group’s internal financial controls. These controls 
include the following:
I a comprehensive annual budgetary process, reviewed and approved by the Board; and
I  the monitoring of actual results against budget, no greater than at monthly intervals, together with the revisiting of forecasts whenever 
it is deemed appropriate.
Using the guidance on internal controls contained in the Code as a benchmark, the Group continues to develop its review procedures of all 
other aspects of internal control, including operational and compliance issues and risk management.
Communication with shareholders
The Board has a strong commitment to the maintenance of good investor relations and seeks, wherever possible, to build a relationship 
of mutual understanding with both its institutional and private investors.
Corporate social responsibility (“CSR”)
IS Pharma takes its CSR seriously.
The Company is mindful of the environmental impact of air miles used in the supply of its products worldwide and seeks wherever possible 
to minimise the frequency of deliveries and to use alternative methods of transportation.
IS Pharma’s commitment to environmental issues is reflected in this annual report which has been printed on Revive Gloss, a recycled 
paper stock which contains 75% recovered fibre and 25% virgin fibre and Revive 100 Offset which is 100% recycled from post consumer 
waste. This document was printed by Beacon Press using pureprint
®
, their environmental print technology which minimises the impact 
of printing on the environment. All energy used comes from renewable sources, vegetable based inks have been used and 94% of all 
waste associated with this production has been recycled. The printer is a carbon neutral company. Both the printer and the paper mill 
are registered to ISO 14001. 18  annual report and accounts 2008 / IS Pharma plc
remuneration report
As well as complying as far as possible with the provisions of the Code as disclosed in the Company’s Corporate Governance statement, 
the Board has applied the Principles of Good Governance relating to Directors’ remuneration as described below.
The level and composition of Directors’ remuneration
The Board believes that it does not pay more than is necessary to attract and retain Directors needed to run the Company successfully.
Statement of remuneration policy
The Remuneration Committee, consisting of the three Non-Executive Directors and chaired by P Murray, who took over from J H Gregory 
on 4 May 2007, meets at least once a year (or more frequently as required). The Committee is responsible for the remuneration of the 
Executive Directors, including their benefits in kind, terms of employment and share options; the Executive Directors also consult the Committee 
in relation to the remuneration of senior employees and staff share option schemes. It takes account of remuneration paid to the Directors 
and senior employees of other companies of a similar size and comparable industry sector in the UK, and the relative performance of such 
companies, to ensure that the remuneration packages offered are competitive and designed to attract, retain and motivate Executive Directors 
and senior employees. 
The remuneration of the Non-Executive Directors is determined by the Board as a whole, based on outside advice and review of current 
practices in other companies. The Chief Executive Officer is normally in attendance, except when his own remuneration is under discussion.
Full details of the remuneration packages of individual Directors and information on share options, pensions and other benefits are set 
out below. 
Directors’ emoluments
Details of the Directors’ emoluments for the year are as follows:
    Year ended Year ended Year ended Year ended 
    31 March 31 March 31 March 31 March 
 Salaries/   2008 2007 2008 2007 
 fees Bonuses Benefits Total Total Pension Pension 
 £ £ £ £ £ £ £
Current Executive Directors      
T Wright  130,729 39,000 1,164 170,893 126,261 19,500 18,750
N J Goldsmith 93,600 23,400 1,333 118,333 73,120 14,040 11,250
A Hardy  85,656 20,267 9,596 115,519 90,474 12,171 10,610
Current Non-Executive Directors      
H G McMillan  41,250 — — 41,250 30,000 — —
J H Gregory 27,500 — —  27,500 20,000 — — 
P Murray 27,500 — —  27,500 20,000 — — 
Total 406,235 82,667 12,093 500,995 359,855 45,711 40,610
Pension contributions    45,711 40,610  
Aggregate remuneration    546,706 400,465  
  IS Pharma plc / annual report and accounts 2008  19
Directors’ service contracts
All Directors of the Company have service contracts. Details are set out below for those Directors who served during the year:
I  T Wright was appointed Director on 17 October 2005. His service contract is with IS Pharma plc and specifies a notice period of 
twelve months on either side. His annual salary with effect from 1 April 2007 was £130,000 and was increased to £132,915 with effect 
from 1 January 2008 and to £170,000 with effect from 1 April 2008. He is entitled to pension contributions of 15% of his annual salary, 
participation in an incentivisation scheme under which, on fulfilment of performance criteria, he may be awarded up to 30% of his annual 
salary in cash, the provision of private healthcare, permanent health insurance and life assurance. He is also entitled to participate in the 
Group’s Enterprise Management Incentive (“EMI”) and Unapproved Share Option Scheme.
I  A Hardy was appointed Director on 27 July 2004. Her service contract is with IS Pharma plc and specifies a notice period of twelve months 
on either side. Her annual salary with effect from 1 January 2007 was £81,069 and was increased to £99,573 from 1 December 2007. 
She is entitled to pension contributions of 15% of her annual salary, participation in an incentivisation scheme under which, on fulfilment 
of performance criteria, she may be awarded up to 25% of her annual salary in cash, the provision of private healthcare, permanent health 
insurance and life assurance. She is also entitled to participate in the Group’s EMI and Unapproved Share Option Scheme. During the year 
she had use of a company car which was returned in December 2007 in exchange for a cash equivalent increase in her salary.
I  N J Goldsmith was appointed Director on 12 June 2006. His service contract is with IS Pharma plc and specifies a notice period of 
twelve months on either side. His annual salary with effect from 1 April 2007 was £93,600 and was increased to £97,344 from 
1 April 2008. He is entitled to pension contributions of 15% of his annual salary, participation in an incentivisation scheme under which, 
on fulfilment of performance criteria, he may be awarded up to 25% of his annual salary in cash, the provision of private healthcare, 
permanent health insurance and life assurance. He is also entitled to participate in the Group’s EMI and Unapproved Share Option Scheme. 
I  The Chairman and other Non-Executive Directors do not have service agreements. However, each has been appointed pursuant to a letter 
of appointment. H G McMillan was paid £41,250 during the year ended 31 March 2008 as Non-Executive Chairman (2007: £30,000). 
J H Gregory was paid £27,500 in the year ended 31 March 2008 (2007: £20,000), which included a fee for his role as Chairman of the 
Audit Committee, and P Murray was paid £27,500 in the year ended 31 March 2008 (2007: £20,000) which includes a fee for his role as 
Chairman of the Remuneration Committee. No Non-Executive Director receives benefits other than participation in the Group’s Unapproved 
Share Option Scheme.
With the exception of Mr Murray’s interest in the acquisition of Acorus Therapeutics Limited as detailed in note 29 to the accounts, 
no director had a material interest in a contract of significance with the Company or with any subsidiary undertaking during the year.
By order of the Board
P Murray
Chairman – Remuneration Committee
23 July 2008  20  annual report and accounts 2008 / IS Pharma plc
statement of directors’ responsibilities
The Directors are responsible for preparing the Annual Report and accounts in accordance with applicable law and regulations.
UK Company Law requires the Directors to prepare consolidated and Company accounts for each financial year. Under that law the Directors 
are required to prepare consolidated accounts in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the EU 
and have elected to prepare the Company accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom 
Accounting Standards and applicable law).
The consolidated accounts are required by law and IFRS adopted by the EU to present fairly the financial position and performance of 
the Group; the Companies Act 1985 provides, in relation to such consolidated accounts, that references in the relevant part of that Act 
to consolidated accounts giving a true and fair view are references to their achieving a fair presentation.
The Company accounts are required by law to give a true and fair view of the state of affairs of the Company. 
In preparing each of the consolidated and Company accounts, the Directors are required to:
I select suitable accounting policies and then apply them consistently;
I make judgements and estimates that are reasonable and prudent;
I  for the consolidated accounts, state whether they have been prepared in accordance with IFRS adopted by the EU; and for the Company accounts 
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the 
Company accounts; and
I  prepare the accounts on the going concern basis unless it is inappropriate to presume that the Group and the Company will continue 
in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position 
of the Company and to enable them to ensure that the accounts comply with the requirements of the Companies Act 1985. They are also 
responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and 
other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website.
Legislation in the UK governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions. IS Pharma plc / annual report and accounts 2008  21
independent auditor’s report
to the members of IS Pharma plc
We have audited the consolidated and Parent Company accounts on pages 22 to 52.
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work 
has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report 
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company 
and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditor
The Directors’ responsibilities for preparing the Annual Report and the Group accounts in accordance with applicable law and International 
Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”), and for preparing the Parent Company accounts in accordance 
with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the 
Statement of Directors’ Responsibilities.
Our responsibility is to audit the accounts in accordance with relevant legal and regulatory requirements and International Standards on 
Auditing (UK and Ireland).
We report to you our opinion as to whether the accounts give a true and fair view and whether the accounts have been properly prepared 
in accordance with the Companies Act 1985. We also report to you whether in our opinion the information given in the Directors’ Report 
is consistent with the accounts.
In addition we report to you if, in our opinion, the Company has not kept proper accounting records, if we have not received all the 
information and explanations we require for our audit, or if information specified by law regarding Directors’ remuneration and other 
transactions is not disclosed.
We read other information contained in the Annual Report and consider whether it is consistent with the audited accounts. The other 
information comprises only the Highlights, Product Portfolio, Chairman’s Statement, Chief Executive Officer’s Review, the Directors’ Report 
and the Corporate Governance statement. We consider the implications for our report if we become aware of any apparent misstatements 
or material inconsistencies with the accounts. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. 
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the accounts. It also includes an assessment 
of the significant estimates and judgements made by the Directors in the preparation of the accounts, and of whether the accounting 
policies are appropriate to the Group’s and Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to 
provide us with sufficient evidence to give reasonable assurance that the accounts are free from material misstatement, whether caused 
by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information 
in the accounts.
Opinion
In our opinion:
I  the consolidated accounts give a true and fair view, in accordance with IFRS as adopted by the EU, of the state of the Group’s affairs 
as at 31 March 2008 and of its profit for the year then ended;
I  the Parent Company accounts give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, 
of the state of the Parent Company’s affairs as at 31 March 2008;
I the accounts have been properly prepared in accordance with the Companies Act 1985; and
I the information given in the Directors’ Report is consistent with the accounts.
Baker Tilly UK Audit LLP
Registered Auditor
Chartered Accountants
Number One Old Hall Street
Liverpool L3 9SX
23 July 2008 22  annual report and accounts 2008 / IS Pharma plc
consolidated income statement
for the year ended 31 March 2008
      2008 2007 
     Note £ £
Revenue      4 7,031,615 2,842,002
Cost of sales      (2,766,245) (1,485,669)
Gross profit      4,265,370 1,356,333
Sales, development and administrative costs       (2,650,118) (1,414,932)
Share-based payments     22 (178,717) (14,165)
Amortisation of intangible assets      (160,410) —
Other administrative expenses      (2,989,245) (1,429,097)
Profit/(loss) from operations      6 1,276,125 (72,764)
Finance income     8 69,501 51,673
Finance expense     8 (167,484) (11,539)
Profit/(loss) before taxation      1,178,142 (32,630)
Tax income     9 506,918 —
Profit/(loss) for the financial year attributable to equity holders of the parent   1,685,060 (32,630)
Basic earnings per ordinary share, following seven for one share consolidation  10 10.3p (0.7)p
Diluted earnings per ordinary share     10 10.1p (0.7)p
All operations are continuing. IS Pharma plc / annual report and accounts 2008  23
consolidated balance sheet
at 31 March 2008
      2008 2007 
     Note   £ £
ASSETS   
Non-current assets   
Property, plant and equipment     12 124,410 67,453
Intangible assets     13 13,566,518 —
Deferred tax asset     20 741,827 —
Total non-current assets      14,432,755 67,453
CURRENT ASSETS   
Inventories     15 850,344 150,175
Trade and other receivables     16 1,566,061 597,956
Cash and cash equivalents      2,304,896  1,427,332
Total current assets      4,721,301  2,175,463
Total assets      19,154,056 2,242,916
EqUITY AND LIABILITIES   
Equity   
Share capital     21 12,428,083 3,428,083
Share premium account      12,035,094 12,154,094
Other reserves      214,610 37,182
Retained earnings      (12,557,195) (14,243,544)
Equity attributable to equity holders of the parent     12,120,592 1,375,815
NON-CURRENT LIABILITIES   
Financial liabilities     19 3,138,148 —
Deferred tax liability     20 604,894 —
Total non-current liabilities      3,743,042  —
CURRENT LIABILITIES   
Trade and other payables     17 1,963,684 867,101
Financial liabilities     17 907,954 —
Current tax payable     17 418,784 —
Total current liabilities      3,290,422 867,101
Total liabilities      7,033,464 867,101
Total equity and liabilities      19,154,056  2,242,916
The consolidated accounts on pages 22 to 48 were approved by the Board of Directors and authorised for issue on 23 July 2008 and were 
signed on its behalf by:
T Wright     N J Goldsmith
Director     Director 24  annual report and accounts 2008 / IS Pharma plc
consolidated statement of changes in equity
for the year ended 31 March 2008
   Share Share Other  Retained  
    capital premium reserves earnings Total  
  Note £ £ £ £ £
At 31 March 2006   3,428,083 12,154,094 23,017 (14,210,914) 1,394,280
Total recognised income and expense   — — — (32,630) (32,630)
Transfers   — — — — —
Share options issued  22 — — 14,165 — 14,165
Issue of ordinary shares   — — — — —
Cost of raising equity   — — — — —
At 31 March 2007   3,428,083 12,154,094 37,182 (14,243,544) 1,375,815
Total recognised income and expense   — — — 1,685,060 1,685,060
Transfers  22 — — (1,289) 1,289 —
Share options issued  22 — — 178,717 — 178,717
Issue of ordinary shares  21 9,000,000 238,000 — — 9,238,000
Cost of raising equity  21 — (357,000) — — (357,000)
At 31 March 2008    12,428,083 12,035,094 214,610 (12,557,195) 12,120,592 IS Pharma plc / annual report and accounts 2008  25
consolidated cash flow statement
for the year ended 31 March 2008
      2008 2007 
      Note  £ £
Operating activities   
Profit/(loss) before taxation      1,178,142 (32,630)
Adjustments for:   
Finance income      (69,501) (51,673)
Finance expense      167,484 11,539
Depreciation and amortisation     12, 13 196,199 19,360
Loss on disposal of property, plant and equipment      — 4,733
Share-based payments expense     22 178,717 14,165
Cash flows from operations before changes in working capital     1,651,041 (34,506)
Changes in working capital excluding the effects of acquisition on consolidation:   
Changes in inventory     15 (424,680) 55,415
Changes in trade and other receivables      16 (422,580) (224,543)
Changes in trade and other payables     17 850,426 189,449
Total changes in working capital      3,166 20,321
Cash generated from/(used in) operations      1,654,207 (14,185)
Taxation     9 13,995 5,961
Net cash from operating activities        1,668,202 (8,224)
Investing activities   
Acquisition of subsidiary net of cash acquired     26 (8,077,897) —
Purchase of property, plant and equipment, development costs and licences   12, 13 (425,109) (66,159)
Proceeds from sale of property, plant and equipment      — 357,918
Interest received      69,501 51,673
Net cash (used in)/generated from investing activities      (8,433,505) 343,432
Cash flows from financing activities   
Net proceeds from issue of ordinary share capital      7,643,000 —
Repayment of financial liabilities      — (192,800)
Interest paid      (133) (11,539)
Net cash received/(paid) in financing activities        7,642,867 (204,339)
Net movement in cash and cash equivalents      877,564 130,869
Cash and cash equivalents at start of year      1,427,332 1,296,463
Cash and cash equivalents at 31 March      2,304,896 1,427,332 26  annual report and accounts 2008 / IS Pharma plc
notes forming part of the consolidated accounts
for the year ended 31 March 2008 
1. Accounting policies 
IS Pharma plc is a public listed company incorporated and domiciled in England and quoted on AIM.
Basis of preparation
The principal accounting policies adopted in the preparation of the accounts are set out below. The policies have been consistently applied 
to all the years presented, unless otherwise stated.
These accounts have been prepared in accordance with International Financial Reporting Standards (IFRS and IFRIC interpretations) as adopted 
by the EU (“IFRS”) and with those parts of the Companies Act 1985 applicable to companies preparing their accounts under IFRS. The Company 
has elected to prepare its Parent Company accounts in accordance with UK GAAP; these are presented on pages 49 to 52. This is the first time 
the Company has prepared its accounts in accordance with IFRS, having previously prepared its accounts in accordance with UK accounting 
standards. Details of how the transition from UK accounting standards to IFRS has affected the Group’s reported financial position, financial 
performance and cash flows are given in note 2.
The accounts have been prepared using the historical cost convention basis, except where detailed in specific accounting policies below:
Transition to IFRS
(a) New standards, amendments to published standards and interpretations to existing standards effective in 2007 adopted by the Group
I  IFRS 7 “Financial Instruments” – Disclosures and an Amendment to IAS 1 “Presentation of Financial Statements – Capital Disclosures” 
(effective for accounting periods beginning on or after 1 January 2007). IFRS 7 introduces new requirements aimed at improving the 
disclosure of information about financial instruments. It requires the disclosure of qualitative and quantitative information about exposure 
to risks arising from financial instruments, including specified minimum disclosures about credit risk, liquidity risk and market risk. Where 
those risks are deemed to be material to the Group it requires disclosures based on the information used by key management. It replaces 
the disclosure requirements in IAS 32 “Financial Instruments: Disclosure and Presentation”. It is applicable to all entities that report under 
IFRS. The amendment to IAS 1 introduces disclosures about the level and management of an entity’s capital. The Group has applied IFRS 7 
and the amendment to IAS 1 to the accounts for the year beginning on 1 April 2007.
I  IFRIC 8 “Scope of IFRS 2” (effective for accounting periods beginning on or after 1 May 2006). IFRIC 8 requires consideration of transactions 
involving the issue or grant of equity instruments to establish whether or not they fall within the scope of IFRS 2. It applies to situations 
where the identifiable consideration received is or appears to be less than the fair value of the equity instruments issued. There was no 
impact on the Group’s accounts from its adoption.
I  IFRIC 10 “Interim Financial Reporting and Impairment” (effective for accounting periods beginning on or after 1 November 2006). IFRIC 10 
prohibits impairment losses recognised in an interim period on goodwill and investments in equity instruments and on financial assets 
carried at cost to be reversed at a subsequent balance sheet date. There was no impact on the Group’s accounts from its adoption.
I  IFRIC 11 “IFRS 2 – Group and Treasury Share Transactions” (effective for accounting periods beginning on or after 1 March 2007). IFRIC 11 
requires share-based payment transactions in which an entity receives services as consideration for its own equity instruments to be 
accounted for as equity-settled. This applies regardless of whether the entity chooses or is required to buy those equity instruments from 
another party to satisfy its obligations to its employees under the share-based payment arrangement. It also applies regardless of whether: 
(a) the employee’s rights to the entity’s equity instruments were granted by the entity itself or by its shareholder(s); or (b) the share-based 
payment arrangement was settled by the entity itself or by its shareholder(s). There was no impact on the Group’s accounts from its adoption.
(b) Standards, interpretations and amendments to published standards effective in 2007 but which are not relevant to the Group
 The following standards, amendments and interpretations to published standards are mandatory for accounting periods beginning on or after 
1 January 2007 but are currently not relevant to the Group’s operations:
I  IFRIC 7 “Applying the Restatement Approach Under IAS 29 Financial Reporting in Hyperinflationary Economies” (effective for accounting 
periods beginning on or after 1 March 2006). IFRIC 7 provides guidance on the application of IAS 29 requirements in a reporting period 
in which an entity identifies the existence of hyperinflation in the economy of its functional currency, when the Company was not 
hyperinflationary in the prior period. IFRIC 7 is not relevant to the Group as none of the Group companies has a currency of a 
hyperinflationary economy as its functional currency.
I  IFRIC 9 “Reassessment of Embedded Derivatives” (effective for accounting periods beginning on or after 1 June 2006). IFRIC 9 requires 
an assessment of whether an embedded derivative is required to be separated from the host contract and accounted for as a derivative 
when an entity becomes party to the contract. Subsequent reassessment is prohibited unless there is a change in the terms of the contract 
that significantly modifies the cash flows that otherwise would be required under the contract, in which case reassessment is required.  IS Pharma plc / annual report and accounts 2008  27
1. Accounting policies continued
Basis of preparation continued
Transition to IFRS continued
(c)  Standards, amendments and interpretations of published standards, which are not yet effective
  Certain new standards, amendments and interpretations to existing standards have been published that are mandatory for the Group’s 
accounting periods beginning on or after 1 January 2008 or later periods and which the Group has decided not to adopt early. These are:
I  IFRS 8 “Operating Segments” (effective for accounting periods beginning on or after 1 January 2009). This standard sets out requirements 
for the disclosure of information about an entity’s operating segments and also about the entity’s products and services, the geographical 
areas in which it operates and its major customers. It replaces IAS 14 “Segmental Reporting”. The Group expects to apply this standard 
in the accounting period beginning on or after 1 January 2009. As this is a disclosure standard it will not have any impact on the results 
or net assets of the Group.
I  IAS 23 “Borrowing Costs (revised)” (effective for accounting periods beginning on or after 1 January 2009). The revised IAS 23 is still to be 
endorsed by the EU. The main change from the previous version is the removal of the option of immediately recognising as an expense 
borrowing costs that relate to qualifying assets, broadly being assets that take a substantial period of time to get ready for use or sale.
I  IFRIC 12 “Service Concession Arrangements” (effective for accounting periods beginning on or after 1 January 2008). IFRIC 12 is still to be 
endorsed by the EU. IFRIC 12 gives guidance on the accounting by operators for public-to-private service concession arrangements. IFRIC 12 
is not relevant to the Group’s operations due to the absence of such arrangements.
I  IFRIC 13 “Customer Loyalty Programmes” (effective for accounting periods beginning on or after 1 July 2008). IFRIC 13 is still to be 
endorsed by the EU. IFRIC 13 addresses sales transactions in which the entities grant their customers award credits that, subject to meeting 
any further qualifying conditions, the customers can redeem in future for free or discounted goods or services. 
I  IFRIC 14 “IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction” (effective for accounting 
periods beginning on or after 1 January 2008). IFRIC 14 is still to be endorsed by the EU. IFRIC 14 clarifies when refunds or reductions in 
future contributions should be regarded as available in accordance with paragraph 58 of IAS 19, how a minimum funding requirement 
might affect the availability of reductions in future contributions and when a minimum funding requirement might give rise to a liability. 
I  Revised IFRS 3 “Business Combinations and Complementary Amendments to IAS 27 Consolidated and Separate Financial Statements” 
(both effective for accounting periods beginning on or after 1 July 2009). This revised standard and amendments thereto are still to be endorsed 
by the EU. The revised IFRS 3 and amendments to IAS 27 arise from a joint project with the Financial Accounting Standards Board, 
the US standards setter, and result in IFRS being largely converged with the related, recently issued, US requirements. There are certain 
very significant changes to the requirements of IFRS, and options available, when accounting for business combinations. 
I  Amendment to IFRS 2 “Share-based Payments: Vesting Conditions and Cancellations” (effective for accounting periods beginning on 
or after 1 January 2009). This amendment is still to be endorsed by the EU. The amendment to IFRS 2 is of particular relevance to companies 
that operate employee share saving schemes. This is because it results in an immediate acceleration of the IFRS 2 expense that would 
otherwise have been recognised in future periods should an employee decide to stop contributing to the savings plan, as well as a 
potential revision to the fair value of the awards granted to factor in the probability of employees withdrawing from such a plan. 
I  Amendment to IAS 1 “Presentation of Financial Statements” (effective for periods commencing on or after the 1 January 2009). This amendment 
is still to be endorsed by the EU. The amendments change the titles of some of the financial statements to reflect their function more carefully. 
The amendments introduce a new component referred to as the “Statement of Comprehensive Income” which enables readers to analyse 
changes in a company’s equity resulting from transactions with owners in their capacity as owners (such as dividends, share issues and 
repurchases) and ‘non-owner’ changes.
I  Amendments to IAS 32 “Financial Instruments: Presentation” and IAS 1 “Presentation of Financial Statements Relating to Puttable Financial 
Instruments and Obligations Arising on Liquidation” (effective for periods commencing on or after 1 January 2009). These amendments are 
still to be endorsed by the EU. The amendments require certain puttable financial instruments and certain financial instruments that impose 
an obligation on the entity to deliver a pro rata share of net assets of the entity on liquidation, to be classified as equity whilst IAS 1 has 
extended disclosure requirements in respect of such instruments. 28  annual report and accounts 2008 / IS Pharma plc
notes forming part of the consolidated accounts continued
for the year ended 31 March 2008 
1. Accounting policies continued
Basis of preparation continued
Transition to IFRS continued
(c)  Standards, amendments and interpretations of published standards, which are not yet effective continued
I  Amendments to IFRS1 “First Time Adoption of International Reporting Standards” and IAS 27 “Consolidated and Separate Financial 
Statements”. The International Accounting Standards Board has published amendments to IFRS 1 and IAS 27 with regards to the accounting 
for the cost of an investment in a subsidiary, jointly controlled entity or associate (effective for periods commencing on or after 1 January 2009).
   The amendments to IFRS 1 permit first-time adopters of IFRS to use deemed cost of either fair value or the carrying value under previous 
GAAP to measure the initial cost of investments in subsidiaries, jointly controlled entities and associates in the separate financial statements. 
   The amendment to IAS 27 removes the definition of the cost method. As a consequence, dividends received by the acquirer in excess 
of earnings recognised after the acquisition date are no longer recognised as a reduction to the cost of the investment but recognised 
as income. The amendment to IAS 27 also provides additional guidance on how to account for an investment when an entity decides 
to reorganise its operating structure by forming a new parent entity so that the existing entity becomes a wholly-owned subsidiary of the 
new parent. The amendment states that the new parent shall measure the cost of its investment in the existing entity using the carrying 
amounts of the equity, assets and liabilities in the separate financial statements of the existing entity at the date of the formation. 
  The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material effect on the accounts 
of the Group, other than the additional segment disclosures under IFRS 8 as noted above. 
Revenue
The Group revenue arises from the sale of pharmaceutical products, sale of medical devices and share of gross margin on medical devices 
sold by distributors. Revenue is recognised upon the transfer of all risks and rewards in relation to the Group’s products. 
Revenue is measured at the fair value of the consideration received or receivable net of value added tax and similar taxes and trade discounts. 
For pharmaceutical products, revenue is recognised on dispatch of goods by the distributor to the final customer. 
For medical devices, revenue is represented by either (1) recognition on dispatch of goods to the final customer or (2), in the case of certain 
medical devices, (i) recognition on dispatch of goods from the manufacturer to the distributor and (ii) a share of the gross margin, which 
is recognised on dispatch of goods by the distributor to the final customer.
Profit from operations
Profit from operations is stated after charging all operating costs including those separately disclosed by virtue of their size or unusual nature 
or to facilitate a more helpful understanding of the Group’s results. It is stated before finance income and costs.
Finance income
Finance income comprises interest receivable on funds invested. 
Finance costs
Finance costs comprises interest payable on financial liabilities and imputed interest payable on loan note instruments issued by the Group.
Tax income/(expense)
Tax income/(expense) represents the sum of current tax and deferred tax payable.
Current tax is the expected tax payable on the taxable income for the year; using tax rates enacted or substantively enacted at the balance 
sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax assets and liabilities are only recognised on taxable and deductible temporary differences, except for differences arising on:
I the initial recognition of goodwill;
I  the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects 
neither accounting nor taxable profit; and
I  investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the reversal of the difference 
and it is probable that the difference will not reverse in the foreseeable future.
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the 
difference can be utilised. IS Pharma plc / annual report and accounts 2008  29
1. Accounting policies continued
Basis of preparation continued
Tax income/(expense) continued
The amount of the asset or liability is determined using tax rates that have been enacted or substantially enacted by the balance sheet date 
and are expected to apply when the deferred tax assets/(liabilities) are settled/(recovered). Deferred tax balances are not discounted.
Deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset current tax assets and liabilities and the 
deferred tax assets and liabilities relate to taxes levied by the same tax authority on either:
I the same taxable Group company; or
I  different Group entities which intend either to settle current tax assets and liabilities on a net basis, or to realise the assets and settle the 
liabilities simultaneously, in each future year in which significant amounts of deferred tax assets or liabilities are expected to be settled or recovered.
Principles of consolidation
The consolidated accounts present the results of the Company and its subsidiaries (“the Group”) as if they formed a single entity. Intra-Group 
transactions, including sales, profits, receivables and payables, have been eliminated on the Group consolidation.
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern the financial 
and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are 
exercisable or convertible are taken into account. 
Business combinations
All business combinations are accounted for by applying the purchase method. On acquisition, all of the subsidiaries’ assets and liabilities that 
exist at the date of acquisition are recorded at their fair values reflecting their condition at that date. The results of subsidiaries acquired in the 
year are included in the income statement from the date on which control is obtained. 
Goodwill
Goodwill represents the excess of the fair value of the consideration paid on acquisition of a business over the fair value of the assets, including 
any intangible assets identified, liabilities and contingent liabilities acquired. Goodwill is not amortised but is measured at cost less impairment 
losses. In determining the fair value of consideration, the fair value of equity issued is the market value of equity at the date of the business 
combination and the fair value of contingent consideration is based upon the extent to which the Directors believe performance conditions 
will be met and thus the probability of whether any further consideration will be payable. 
Impairment of non-financial assets
Impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken annually. Other non-financial 
assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. 
Where the carrying value of an asset exceeds its recoverable amount the asset is written down accordingly.
Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the asset’s cash-generating 
unit (i.e. the lowest Group of assets in which the asset belongs for which there are separately identifiable cash flows). Goodwill is allocated on 
initial recognition to each of the Group’s cash-generating units that are expected to benefit from the synergies of the combination giving rise 
to the goodwill.
The estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments 
of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. 
Impairment charges are included in the administrative expenses line in the income statement, except to the extent they reverse gains previously 
recognised in the statement of recognised income and expense. Impairment losses on goodwill can never be reversed.
Foreign currency
All Group companies use Pounds Sterling as the functional and presentational currency. Transactions entered into in a currency other than the 
functional currency are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated 
at the rates ruling at the balance sheet date. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are 
recognised immediately in the income statement. 30  annual report and accounts 2008 / IS Pharma plc
notes forming part of the consolidated accounts continued
for the year ended 31 March 2008 
1. Accounting policies continued
Basis of preparation continued
Segment reporting
A business segment is a distinguishable component of an enterprise that is engaged in providing an individual product or service or a group 
of related services and that is subject to risks and returns that are different from those of other business segments. A geographical segment is 
a distinguishable component of an enterprise that is engaged in providing products or services within a particular economic environment and 
that is subject to risk and returns that are different from those of components operating in other economic environments. 
Financial instruments
Classification of financial instruments
Financial instruments are classified as financial assets, financial liabilities or equity instruments.
Following the adoption of IAS 32 “Financial Instruments: Presentation”, financial instruments issued by the Group are treated as equity instruments 
to the extent that they meet the following two conditions:
I  they include no contractual obligations upon the Group to deliver cash or other financial assets that are potentially unfavourable to the 
Group; and
I  where the instrument will or may be settled in the Group’s own equity instruments, it is either a non-derivative that includes no obligation 
to deliver a variable number of the Group’s own equity instruments or is a derivative that will be settled by the Group exchanging a fixed 
number of its own equity instruments.
To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where the instrument so classified 
takes the legal form of the Company’s own shares, the amounts presented in these accounts for called up share capital and share premium 
account exclude amounts in relation to those shares.
Finance payments associated with financial instruments that are classified as equity are dividends and are recorded directly in equity. Finance 
payments associated with financial liabilities are dealt with as part of finance costs.
Financial assets
The Group’s loans and receivables comprise trade and other receivables and cash and cash equivalents.
Cash and cash equivalents include cash in hand deposits held at call with banks. The Group had no bank overdrafts at either year end.
Trade receivables do not carry interest and are stated at their amortised cost as reduced by allowances for impairment when there is objective 
evidence of impairment.
Provisions for impairment are recorded in a separate allowance account with i) the loss on general provisions being recognised within administrative 
expenses or ii) the loss on specific credit note provisions being recognised within revenue in the income statement. On confirmation that the trade 
receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.
Financial liabilities
Trade payables and other short-term monetary liabilities are recognised at amortised cost.
Loan note instruments issued by the Group are initially recognised at their fair value on the date issued. The liabilities are subsequently 
measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the year to repayment 
is at a constant rate on the balance of the liability carried in the balance sheet. “Interest expense” in this context includes imputed interest 
using prevailing market rates of interest for a similar instrument.
Equity instruments
Equity instruments issued by the Group are initially recorded at fair value and are not subsequently remeasured. The par value is recognised in share 
capital and the premium in the share reserve.
Employee benefits: defined contribution schemes
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an 
independently administered fund. The amount charged against profits represents the contributions payable to the scheme in respect of the 
financial year.
Differences between contributions payable in the year and contributions actually paid are shown as either other payables or other receivables 
in the balance sheet. IS Pharma plc / annual report and accounts 2008  31
1. Accounting policies continued
Share-based payments
The Group operates an equity-settled share-based remuneration scheme for all employees under the Enterprise Management Incentive Scheme. 
Share options granted to Executives in excess of the tax thresholds required by the Enterprise Management Incentive Scheme are classified for 
tax purposes as Unapproved Share Options. Share options vest after three years’ continuous employment by an individual holding the options. 
The options lapse if the employee leaves the Company before three years or if the share options are not exercised within ten years from the date 
of grant.
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the income statement over the 
vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each 
balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that 
eventually vest.
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately 
before and after the modification, is also charged to the income statement over the remaining vesting period.
Leased assets
Where substantially all of the risks and rewards incidental to ownership of a leased asset have been transferred to the Group (a “finance lease”), 
the asset is treated as if it had been purchased outright. The amount initially recognised as an asset is the fair value or, if lower, the present value 
of the minimum lease payments payable over the term of the lease. The corresponding lease commitment is shown as a liability. Lease payments 
are analysed between capital and interest. The interest element is charged to the income statement over the term of the lease and is calculated 
so that it represents a constant proportion of the lease liability. The capital element reduces the balance owed to the lessor.
Where substantially all of the risks and rewards incidental to ownership are retained by the lessor (an “operating lease”), the total rentals 
payable under the lease are charged to the income statement on a straight line basis over the lease term.
Externally acquired intangible assets
Externally acquired intangible assets are initially recognised at cost and subsequently amortised over their useful economic lives. The amortisation 
expense is included within the administrative expenses line in the income statement.
Intangible assets are recognised on business combinations if they are separable from the acquired entity or give rise to other contractual/legal 
rights and where their fair value can be measured reliably. The amounts ascribed to such intangibles are arrived at by using appropriate 
valuation techniques.
The significant intangibles recognised by the Group, their useful economic lives and the methods used to determine the cost of intangibles 
acquired in a business combination are as follows:
Intangible asset     Useful economic life  Valuation method
Mysoline Trademark     10 years Royalty Relief Method
Cryogesic Trademark     10 years Royalty Relief Method
Haemopressin Trademark     10 years Royalty Relief Method
Internally generated intangible assets (development costs)
Expenditure on internally developed assets is capitalised if it can be demonstrated that:
I  adequate resources are available to complete the development;
I  there is an intention to complete and sell the product;
I  the Group is able to sell the product which the intangible asset supports;
I  use of the intangible asset will generate future economic benefits through product sales; 
I  expenditure on the project can be measured reliably; and
I  the Directors believe that it is technically feasible to complete the asset so that it can generate future economic benefits through product sales.
This would normally be demonstrated by reference to the stage of development which the product has reached or evidenced by a formal 
announcement by the Directors declaring a launch timescale for the product.
Capitalised development costs are amortised over the periods the Group expects to benefit from selling the products developed. 
Development expenditure not satisfying the above criteria and expenditure on the research phase of internal projects are recognised in the income 
statement as incurred. 32  annual report and accounts 2008 / IS Pharma plc
notes forming part of the consolidated accounts continued
for the year ended 31 March 2008 
1. Accounting policies continued
Dividends
Interim dividends to equity shareholders are recognised when they are paid. Final dividends are recognised when approved by the shareholders 
at the Annual General Meeting. 
Property, plant and equipment
Items of property, plant and equipment are initially recognised at cost. Depreciation is provided on all other items of property, plant and equipment 
to write off the carrying value of items over their expected useful economic lives. It is applied at the following rates:
Plant and machinery – 20% to 25% per annum straight line
Fixtures, fittings and equipment – 25% to 50% per annum straight line
Inventories
Inventories are initially recognised at cost and subsequently at the lower of cost and net realisable value. Cost comprises all costs of purchase, 
costs of conversion and other costs incurred in bringing the inventories to their present location and condition.
Provision is made where necessary for obsolete, slow moving inventory where it is deemed that the costs incurred may not be recoverable.
Government grants
Government grants received on capital expenditure are generally deducted in arriving at the carrying amount of the asset purchased. 
Grants for revenue expenditure are netted against the cost incurred by the Group.
Where retention of a government grant is dependent on the Group satisfying certain criteria, it is initially recognised as deferred income. 
When the criteria for retention has been satisfied, the deferred income balance is released to the income statement or netted against the 
asset purchased as appropriate. 
Critical judgements and estimates
The preparation of the accounts in conformity with IFRS as adopted by the EU requires management to make judgements, estimates and 
assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and 
associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, 
the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from 
other sources. Actual results may differ from these estimates. The key sources of estimation that have a significant impact on the carrying 
value of assets and liabilities are discussed below:
Valuation of intangibles acquired in business combinations
Determining the fair value of intangibles acquired in business combinations requires estimation of the value of the cash flows related to the 
identified intangibles and a suitable discount rate in order to calculate the present value. 
The value of cash flows has been estimated by applying royalty rates achievable on comparable products to the forecast gross profit used 
at the time of the business combination. The estimated gross profit is calculated by estimating future revenues and cost of sales based on 
historical experiences.
The estimate of the applicable discount rates for intangible assets are based on a Capital Asset Pricing Model-derived discount rate and the 
nature of the intangible asset being valued.
Other fair value assessments for business combinations
IFRS 3 requires all assets and liabilities acquired as part of a business combination to be recorded at fair value. This requires a judgement 
to be made on the likely provisions required against book receivable balances and provisions for liabilities which have not been recognised 
in the books of the acquired entities. IS Pharma plc / annual report and accounts 2008  33
1. Accounting policies continued
Critical judgements and estimates continued
Initial recognition of deferred consideration – Acorus Therapeutics Limited 
The fair value of deferred consideration is determined by discounting the amount payable on redemption of loan note instruments to their 
present value at the date of exchange. 
The loan note instruments are redeemable (together with accrued interest) upon achievement of milestone events, dependent upon the 
cumulative net sales of the acquired company, over a six year period following the date of acquisition. 
To estimate the amount payable in deferred consideration, the Directors estimate the probability of these milestone events being achieved 
against forecast revenues.
The discount rate used to achieve the fair value is estimated using equivalent rates of return for financial instruments with similar terms 
and characteristics.
Impairment of goodwill and other intangibles
Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which goodwill has 
been allocated. The value in use calculation requires an entity to estimate the future cash flows expected to arise from the cash-generating 
unit and a suitable discount rate in order to calculate present value. An impairment review has been performed at the reporting date and 
no impairment has been identified. More details including carrying values are included in the notes 26 and 27.
Valuation of development costs as intangibles
Determining whether expenditure qualifies as development expenditure requires, amongst other criteria, estimation of the probability of the 
project generating future economic benefit. 
Expenditure identified as development expenditure is valued at acquisition cost. The Group reviews intangible assets for impairment when 
there is an indication of impairment. If an impairment is identified the value of the impairment is charged to the income statement.
Useful economic lives of intangible assets and property, plant and equipment
Intangible assets and property, plant and equipment are amortised or depreciated over their useful economic lives. Useful lives are based on 
management’s estimates of the period over which the assets will generate revenue, which are periodically reviewed for continued appropriateness. 
Changes to estimates can result in changes in the carrying values and hence amounts charged to the income statement in particular periods 
which, in the case of intangible assets, could be significant. More details including carrying values are included in notes 12 and 13.
Deferred tax asset recognised in respect of tax losses
Determining the value of the deferred tax asset which should be recognised in respect of tax losses requires an estimation of the taxable profits 
of the subsidiary against which accumulated tax losses may be utilised. The estimated taxable profit is calculated by estimating future revenues 
and operating profit based on formally approved forecasts and historical experience.
Share-based payments
The Group has an equity-settled share-based remuneration schemes for employees. Employee services received, and the corresponding 
increase in equity, are measured by reference to the fair value of the equity instruments (shares) at the date of grant, excluding the impact 
of any non-market vesting conditions. The fair value of share options is estimated by using a binomial valuation model on the date of grant 
based on certain assumptions. Those assumptions are described in note 22 and include, among others, the dividend growth rate, expected 
volatility, expected life of the options and number of options expected to vest. More details including carrying values are disclosed in note 22.  34  annual report and accounts 2008 / IS Pharma plc
notes forming part of the consolidated accounts continued
for the year ended 31 March 2008 
2. First time adoption of International Financial Reporting Standards (“IFRS”)
For all periods up to and including 31 March 2007, the Group prepared its accounts in accordance with UK Generally Accepted Accounting 
Principles (“UK GAAP”). For the financial year ending 31 March 2008, the Group has prepared its annual consolidated accounts in accordance 
with IFRS as adopted by the EU and implemented in the UK.
The Directors have considered the impact of endorsed IFRS upon the Group and have concluded that apart from changes in format and 
presentation there is no impact upon the previously reported results, balance sheet and cash flows of the Company.
IFRS 1 “First-time Adoption of International Financial Reporting Standards” sets out the transition rules, which must be applied, when 
endorsed IFRS is adopted for the first time. The standard sets out certain mandatory exemptions to retrospective application and certain 
optional exemptions. The most significant optional exemptions available and taken by the Group are as follows:
I  share-based transactions: The Group adopted the exemption in IFRS 1 which allows a first-time adopter to apply the standard only to share 
options and equity instruments granted after 7 November 2002 that have not vested by 1 April 2006; and
I Land and buildings are valued at deemed cost at the date of transition under the exemption allowed by IFRS 1.
3. Financial instruments 
The Group is exposed through its operations to one or more of the following financial risks:
I  liquidity risk;
I  market price risk; and
I  credit risk.
Policy for managing these risks is set by the Board following recommendations from the Finance Director. Certain risks are managed centrally, 
while others are managed locally following guidelines communicated from the centre. The policy for each of the above risks is described in 
more detail below.
Principal financial instruments
The principal financial instruments used by the Group, from which financial risk arises, are as follows:
I trade receivables;
I  cash and cash equivalents;
I  trade and other payables; and
I  loan notes.
Liquidity risk
The liquidity risk of each Group entity is managed centrally by the Group Finance Director. Liquidity risk arises from the Group’s management 
of working capital and the finance charges and principal payments on debt financing. It is the risk that the Group will have difficulty in meeting 
its financial obligations as they fall due. The Group currently has sufficient liquid resources which, along with operating cash generation, 
is sufficient to meet the liquidity requirements of the business and its future plans. 
The Group also had access to £1.5m of undrawn borrowing facilities at the year end at a floating rate of interest. Since the year end the Group 
has negotiated borrowing facilities of £8.0m to ensure that short-term fluctuations are manageable and that it will always have sufficient 
short, medium and long-term funding in place. The Board monitors a cash flow forecast on a regular basis.
Market price risk
Market price risk arises from the use of interest bearing, tradeable and foreign currency financial instruments. It is the risk that the fair value of 
future cash flows of a financial instrument will fluctuate because of changes in interest rates, currency rates or other market factors. The Group 
balance sheet is not exposed to market price risk.
Fair value and cash flow interest rate risk
Cash balances attract a market rate of interest. 
The Group has issued loan note instruments described in note 26 which incur a fixed rate of interest. 
The Group does not hold any liabilities which incur a floating rate of interest and therefore there is no significant interest rate risk associated 
with the Group’s cash balances.  IS Pharma plc / annual report and accounts 2008  35
3. Financial instruments continued
Liquidity risk continued
Foreign currency risk
The Group’s primary foreign currency risk arises from suppliers who invoice in Euros and also export sales to the EU which the Group invoices 
in Euros.
The Group does not currently utilise forward contracts to manage the risk but bulk purchases of inventories enable management of the overall 
pricing of materials and monitoring of exchange rates ensures that the Group makes payments against trade payables at an appropriate time 
to reduce the effect of exchange rate fluctuations.
Payments to suppliers from the EU are paid out of a Euro bank account which is funded through export sales to the EU. This further helps to 
mitigate the risks of foreign exchange movements.
The Euro bank account is monitored and maintained to ensure that sufficient Euros are available to meet purchasing requirements. Surplus 
Euros are converted back into Pounds Sterling to minimise the foreign currency risk generated by revenues from the EU.
Balances which are denominated in Euros are broken down as follows:
      2008 2007 
      £ £
Trade receivables      779,756 42,194
Cash and cash equivalents      561,597 33
Trade payables      (389,142) (269,301)
Whilst the Group takes steps to minimise its exposure to foreign exchange risk as described above, changes in foreign exchange rates will have 
an impact on profit.
The Group’s foreign exchange risk is dependent on the movement in the Euro to Pounds Sterling exchange rate. The effect of a 10% 
strengthening in the Euro against Pounds Sterling at the balance sheet date on the Euro denominated assets and liabilities at that date and 
on the annualised interest on that amount would, all other variables being held constant, have resulted in an increase in the post-tax profit for 
the year of £0.1m. A 10% weakening in the exchange rate would, on the same basis, have decreased post-tax profit by £0.1m and reduced 
shareholders’ equity by the same amount.
Credit risk
The Group’s credit risk is primarily derived from its trade receivables, this risk is managed daily by the Group’s credit controller who 
monitors recovery to ensure that outstanding debts are identified when these become overdue and appropriate action is taken to recover 
the amounts outstanding.
Credit checks are also made for new customers and appropriate credit limits are set from this information. Credit limits may only be exceeded 
with the express authorisation of the Group Finance Director.
The Group provides against specific trade receivables where appropriate and based on likely recovery.
The Group’s credit risk is dependent on the recoverability of trade receivables from its customers. An analysis of credit quality is shown in note 16. 
If customers in Category 3,“Overseas balances carrying a provision”, were to default on repayments, this would reduce post-tax profit by £0.2m 
and reduce shareholders’ equity by the same amount.
Capital
The Group considers its capital to comprise its ordinary share capital, share premium and accumulated retained earnings. The Group’s objective 
is to maximise shareholder wealth by capital growth.
4. Revenue
Revenue arises from:
      2008 2007 
      £ £
Pharmaceutical products      4,415,236 1,045,474
Medical devices      2,616,379 1,796,528
      7,031,615 2,842,002 36  annual report and accounts 2008 / IS Pharma plc
notes forming part of the consolidated accounts continued
for the year ended 31 March 2008 
5. Segment information
a) Primary format – business segments
The Group operates out of its UK base purchasing and supplying goods in two main business segments: medical devices and pharmaceutical products.
The segment results for the year ended 31 March 2008 are as follows:
    Medical Pharmaceutical 
    devices products Unallocated Total 
    2008 2008 2008 2008 
    £ £ £ £
Revenue    2,616,379 4,415,236 — 7,031,615
Segment result    1,638,424 2,344,035 (2,706,334) 1,276,125
Net finance expense    — — (97,983) (97,983)
Tax expense    — — 506,918 506,918
Profit for the year    1,638,424 2,344,035 (2,297,399) 1,685,060
Balance sheet     
Segment assets    5,875,367 12,435,664 843,026 19,154,056
Segment liabilities    (617,519) (1,226,030) (5,189,915) (7,033,464)
Other     
Capital expenditure    4,438,443 9,315,266 65,965 13,819,674
Depreciation    — 3,571 32,219 35,790
Amortisation of intangible assets    55,508 104,901 — 160,409
All results arise from continuing operations. 
The segment results for the year ended 31 March 2007 are as follows:
    Medical Pharmaceutical 
    devices products Unallocated Total 
    2007 2007 2007 2007 
    £ £ £ £
Revenue    1,796,528 1,045,474 — 2,842,002
Segment result    890,555 368,591 (1,331,910) (72,764)
Net finance expense    — — 40,134 40,134
Tax expense    — — — —
Profit/(loss) for the year    890,555 368,591 (1,291,776) (32,630)
Balance sheet     
Segment assets    1,363,969 811,495 67,452 2,242,916
Segment liabilities    (372,553) (260,861) (233,687) (867,101)
Other     
Capital expenditure    — — 66,159 66,159
Depreciation    — — 13,127 13,127
Amortisation of intangible assets    — — — —
Segment assets consist primarily of tooling, cash, inventories, intangibles, trade and other receivables.
Unallocated assets comprise of fixtures and fittings and deferred tax.
Segment liabilities consist primarily of operating liabilities. Unallocated liabilities comprise items such as taxation and deferred consideration 
under loan note instruments.
Capital expenditure comprises additions to property, plant and equipment (note 12) and intangible assets (note 13) including additions 
resulting from acquisitions through business combinations (note 26). IS Pharma plc / annual report and accounts 2008  37
5. Segment information continued
b) Secondary format – geographical segments
The Group’s two main business segments operate in two main geographical areas: the UK and the rest of the world. 
The rest of the world segment includes trading with European countries, South Africa and South America. Transactions in this segment are 
primarily invoiced in Euros.
 External revenue by   Total assets by  Capital expenditure 
 location of customers  location of assets  by location of assets
  2008 2007 2008 2007 2008 2007 
  £ £ £ £ £ £
United Kingdom  5,016,550 2,842,002 19,098,824 2,242,916 13,819,674 66,159
Rest of the world  2,014,965 — 55,232 — — —
  7,031,615 2,842,002 19,154,056 2,242,916 13,819,674 66,159
6. Profit/(loss) from operations
      2008 2007 
      £ £
This has been arrived at after charging/(crediting):
Depreciation of property, plant and equipment      35,790 13,127
Amortisation of intangible assets      160,409 —
Operating leases – plant and machinery      6,666 3,012
Operating leases – other      44,984 24,186
Research and development      118,930 97,187
Share-based payments      178,717 14,165
Foreign exchange gains      (104,775) (1,822)
Foreign exchange losses      37,437 7,131
Loss on disposal of property, plant and equipment      — 4,733
Grant income       1,137 2,727
Auditor remuneration 
Amounts payable to Baker Tilly UK Audit LLP and its associates (2007: Baker Tilly and its associates) in respect of both audit and non-audit services:
      2008 2007 
      £ £
Audit services   
– statutory audit of parent company and consolidated accounts     20,112 7,400
Other services       
– audit of subsidiary undertakings      28,113 10,457
Taxation services   
– compliance services      15,713 7,500
– advisory services      11,571 5,165
Services relating to corporate finance transactions     8,000 94,493
All other services      — 4,800
Amounts payable to Baker Tilly UK Audit LLP and its associates (2007: Baker Tilly and its associates) in respect of both audit and non-audit 
services to the Company itself are not disclosed in the individual accounts of IS Pharma plc because the Company’s consolidated accounts are 
required to disclose such fees on a consolidated basis. 38  annual report and accounts 2008 / IS Pharma plc
notes forming part of the consolidated accounts continued
for the year ended 31 March 2008 
7. Staff costs and Directors’ emoluments
       2008 2007 
      £ £
Staff costs
Wages and salaries      795,093 435,853
Employer’s national insurance contributions      87,006 64,749
Defined contribution pension costs      64,792 51,154
Share-based payments – equity-settled      178,717 14,165
      1,125,608 565,921
Directors’ remuneration   
Directors’ emoluments      445,995 289,855
Employer’s national insurance contributions      50,059 36,808
Short-term employee benefits      496,054 326,663
Amounts paid to third parties in respect of Directors’ services     55,000 70,000
Pension costs      45,711 40,610
Gains on share options exercised      — —
Share-based payments      138,552 10,509
Remuneration of key management personnel      735,317 447,782
Remuneration of the highest paid Director       170,893 126,261
Pension contributions for highest paid Director      19,500 18,750
Gains on share option exercised      — —
      190,393 145,011
Number of Directors accruing retirement benefits      3 3
The average number of employees (including Executive Directors) during the year was as follows:   
Technical      5 4
Administration      4 2
Commercial      3 2
      11 8
The key management of the Group comprises the Directors.
8. Finance income and expense
      2008 2007 
      £ £
Finance income   
Bank interest received      69,501 51,673
Finance expense   
Bank borrowings      (133) (11,539)
Interest imputed on deferred consideration      (167,351) —
Total finance expense      (167,484) (11,539)
Net finance expense      (97,983) 40,134
9. Tax expense
      2008 2007 
      £ £
Current tax   
Tax charge      292,111 —
Research and development tax credits in respect of prior year      (13,995) —
      278,116 —
Deferred tax    
Origination and reversal of temporary differences (note 20)     (741,786) —
Deferred tax income relating to changes in tax rates (note 20)     (43,248) —
      (785,034) —
Total tax credited to income statement      (506,918) — IS Pharma plc / annual report and accounts 2008  39
9. Tax expense continued
The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the UK applied to profits 
for the year are as follows:
      2008 2007 
      £ £
Profit/(loss) before tax      1,178,142 (32,630)
Expected tax charge based on the standard rate of corporation tax in the UK of 30% (2007: 30%)   353,443 (9,789)
Expenses not deductible for tax purposes      100,597 27,327
Differences between depreciation for year and capital allowances     (20,864) (20,390)
Capital gain      — 14,822
Tax losses utilised by subsidiaries      (141,063) (11,970)
Research and development tax credits received in respect of prior year     (13,995) —
Origination and reversal of temporary differences      (741,786) —
Deferred tax income relating to changes in tax rates      (43,248) —
Total tax credited to income statement      (506,918) —
The Group has estimated tax losses available for offset against future profits of £9.7m (2007: £10.3m).
10. Earnings per share
The calculations of earnings per share are based on the following results and numbers of shares:
        2007 
      2008 2007 restated* 
      £ £ £
Profit/(loss) for the year     1,685,060 (32,630) (32,630)
Adjustment for share-based payments      144,165 14,165 14,165
Adjustment for imputed interest charge on loan note instruments     167,351 — —
Adjustment for amortisation of intangible assets      160,410 — —
Profit/(loss) for the year after adjustments      2,156,986 (18,465) (18,465)
        2007 
      2008 2007 restated* 
      Number Number Number
Weighted average number of shares for the purposes of basic earnings per share  16,384,381 34,280,833 4,897,262
Effect of employee share option schemes     219,898 — —
Weighted average number of shares for the purposes of diluted earnings per share  16,604,279 34,280,833 4,897,262
        2007 
      2008 2007 restated*
Basic earnings per share      10.3p (0.1)p (0.7)p
Diluted earnings per share      10.1p (0.1)p (0.7)p
Adjusted basic earnings per share     13.2p (0.1)p (0.4)p
Adjusted diluted earnings per share     13.0p (0.1)p (0.4)p
* Restated following seven for one share consolidation approved on 21 April 2008.
11. Dividends
The Directors propose no dividend to be paid for the year. 40  annual report and accounts 2008 / IS Pharma plc
notes forming part of the consolidated accounts continued
for the year ended 31 March 2008
12. Property, plant and equipment
       Fixtures,  
      Plant and fittings and  
     machinery equipment Total 
     £ £ £
Cost or valuation     
At 1 April 2006     278,675 153,283 431,958
Additions     — 66,159 66,159
Transfers     (10,249) 10,249 —
Disposals     (36,113) (54,339) (90,452)
At 31 March 2007     232,313 175,352 407,665
Additions     26,782 65,965 92,747
Transfers     — — —
Disposals     — — —
At 31 March 2008     259,095 241,317 500,412
Accumulated depreciation    
At 1 April 2006     278,675 138,178 416,853
Depreciation charge for the year     — 13,127 13,127
Transfers     (10,249) 10,249 —
Disposals     (36,113) (53,655) (89,768)
At 31 March 2007     232,313 107,899 340,212
Depreciation charge for the year     3,571 32,219 35,790
Transfers     — — —
Disposals     — — —
At 31 March 2008     235,884 140,118 376,002
Net book value    
At 1 April 2006     — 15,105 15,105
At 31 March 2007     — 67,453 67,453
Net book value at 31 March 2008     23,211 101,199 124,410
Accumulated depreciation of £376,002 (2007: £340,212) has been charged to administrative expenses in the income statement.
The gross carrying value of fully depreciated assets still in use is £340,556.
13. Intangible assets
      Development Total 
    Goodwill Trademarks costs intangibles 
    £ £ £ £
Cost
At 1 April 2006 and 31 March 2007    — — — —
Arising on acquisition of subsidiary    11,234,228 2,160,337 — 13,394,565
Acquisitions – internally developed    — — 332,362 332,362
At 31 March 2008    11,234,228 2,160,337 332,362 13,726,927
Accumulated amortisation    
At 1 April 2006    — — — —
Amortisation charge for the year    — — — —
At 31 March 2007    — — — —
Amortisation charge for the year    — 156,605 3,804 160,409
At 31 March 2008    — 156,605 3,804 160,409
Carrying amount    
At 1 April 2006    — — — —
At 31 March 2007    — — — —
At 31 March 2008    11,234,228 2,003,732 328,558 13,566,518
Amortisation of £160,409 (2007: £nil) has been charged to administrative expenses in the income statement. IS Pharma plc / annual report and accounts 2008  41
14. Subsidiaries
The principal subsidiaries of IS Pharma plc, all of which have been included in these consolidated accounts, are as follows:
 Country of Proportion of Principal 
Name incorporation ownership interest activity
IS Pharmaceuticals Limited England and Wales 100% Healthcare products
Maelor Laboratories Limited England and Wales 100% Dormant
Acorus Therapeutics Limited England and Wales 100% Healthcare products
15. Inventories
      2008 2007 
      £ £
Raw materials and consumables      299,157 81,468
Finished goods      551,187 68,707
      850,344 150,175
Movements on the Group provision for impairment of inventories are as follows:
      2008 2007 
      £ £
At beginning of year      — —
Provided during the year      62,110 —
At end of year      62,110 —
The cost of inventories recognised as expense and included in the cost of goods sold amounted to £2,766,245 (2007: £1,485,669). Provisions 
for obsolescence are included in the value for inventory. 
16. Trade and other receivables
      2008 2007 
Due within one year      £ £
Trade receivables       1,363,834 529,388
Taxation recoverable      35,754 —
Prepayments       166,473 68,568
      1,566,061 597,956
The fair value of trade and other receivables approximates to book value at 31 March 2008 and 2007.
The Group’s recovery profile is such that approximately 70% of sales is made to two key distributors. The Board receives management information 
each month regarding sales and trade receivables and monitors the Group’s performance. The following tables illustrates the concentrations 
of credit risk within the Group as at the balance sheet date:
      2008 2007 
      £ £
Up to three months      1,322,231 529,388
Three to six months      41,603 —
      1,363,834 529,388
The Group’s maximum credit risk is equal to the carrying value for trade receivables and cash and cash equivalents.
The Group’s credit quality can be analysed as follows:
      2008 2007 
      £ £
Category 1 – UK based      585,166 529,388
Category 2 – Balances outside UK       523,036 —
Category 3 – Overseas balances carrying a provision (net of provision)     255,632 —
      1,363,834 529,388 42  annual report and accounts 2008 / IS Pharma plc
notes forming part of the consolidated accounts continued
for the year ended 31 March 2008 
16. Trade and other receivables continued
The analysis of the Group’s provisions against trade receivables is shown in the table below:
     Gross  Net carrying 
     value Provision amount 
     £ £ £
Category 1 – UK based     603,197 (18,031) 585,166
Category 2 – Balances outside UK      523,036 — 523,036
Category 3 – Overseas balances carrying a provision     407,183 (151,551) 255,632
     1,533,416 (169,582) 1,363,834
Movements on the Group provision for impairment of trade receivables are as follows:
      2008 2007 
      £ £
At beginning of year      52,154 —
Provided during the year      127,388 52,154
Amounts written off against provision      (4,162) —
Unused amounts released      (5,798) —
At end of year      169,582 52,154
Provisions for impairment of trade receivables have been made against receivables where the Directors believe that it is probable that the 
receivables will not be recovered. 
17. Trade and other payables – current
      2008 2007 
      £ £
Trade payables      1,343,006 562,115
Other tax and social security costs      76,847 63,794
Other payables      115,005 21,137
Accruals      428,826 220,055
      1,963,684 867,101
Financial liabilities      907,954 —
Current tax payable      418,784 —
      3,290,422 —
The fair value of trade and other payables approximates to book value at 31 March 2008 and 2007.
The current tax payable of £418,784 represents the amounts of income tax payable in respect of the current year and income tax payable 
in respect of Acorus Therapeutics Limited for the period from 1 October 2006 to completion of the acquisition of the company by IS Pharma plc 
on 10 May 2007.
18. Other financial liabilities – current
      2008 2007 
      £ £
Bank overdraft      — — IS Pharma plc / annual report and accounts 2008  43
19. Long-term liabilities
      2008 2007 
      £ £
Loan note instruments (described in note 26)      3,138,148  —
Maturity of financial liabilities
The carrying amounts of financial liabilities, all of which are exposed to cash flow or fair value interest rate risk, are repayable as follows:
     2008  2007 
    2008 Long-term  2007 Long-term 
    On demand borrowing  On demand borrowing  
    £ £ £ £
In less than one year    —  1,000,000 — —
One to two years    — 1,000,000 — —
Two to three years    — 1,000,000 — —
Three to four years    — 1,000,000 — —
Four to five years    — 1,000,000 — —
    — 5,000,000 — —
20. Deferred taxation
Deferred tax is calculated in full on taxable temporary differences using a tax rate of 28% (2007: 30%).
The movement on deferred tax assets is as shown below:
      2008 2007 
      £ £
Deferred tax asset at 1 April      — —
Deferred tax asset recognised in respect of tax losses      707,275 —
Deferred tax asset arising on share options      34,511 —
Net deferred tax assets at 31 March      741,786 —
Deferred tax assets have been recognised in respect of all tax losses and other temporary differences giving rise to deferred tax assets where 
the Directors believe it is probable that these assets will be recovered. In previous years no tax asset was recognised in respect of tax losses 
attributable to IS Pharmaceuticals Limited as this company was loss making. In 2008 IS Pharmaceuticals Limited has become profitable and 
the Directors believe it is appropriate to recognise a deferred tax asset in view of forecast future profits.
The movement on net deferred tax liabilities is as shown below:
      2008 2007 
      £ £
Deferred tax at 1 April      — —
Deferred tax liability arising on business combinations      (648,142) —
Movement in deferred tax liability arising on change in tax rates     43,248 —
Net deferred tax liabilities at 31 March      (604,894) —
The movements in deferred tax assets and liabilities (prior to the offsetting of balances within the same jurisdiction as permitted by IAS 12) 
during the year are shown below:
    Other  Total  Total 
    temporary Available gross Business gross 
   differences  losses assets combinations liabilities 
Deferred tax assets/(liabilities)   £ £ £ £ £
At 1 April 2006 and 31 March 2007   — — — — —
Credit to income statement    34,511 707,275 741,786 43,248 43,248
On business combinations    — — — (648,142) (648,142)
At 31 March 2008   34,511 707,275 741,786 (604,894) (604,894) 44  annual report and accounts 2008 / IS Pharma plc
notes forming part of the consolidated accounts continued
for the year ended 31 March 2008 
21. Share capital
 Authorised   Authorised
    2008 2008 2007 2007 
    Number £ Number £
Ordinary shares of 10p each    200,000,000 20,000,000 80,000,000 8,000,000
 Issued and fully paid   Issued and fully paid
    2008 2008 2007 2007 
    Number £ Number £
Ordinary shares of 10p each    124,280,833 12,428,083 34,280,833 3,428,083
The Company issued ordinary shares during the year as detailed below:
       Premium   
      less costs of Consideration 
     Nominal raising equity after costs 
    Number £ £ £
At 1 April 2006 and 31 March 2007    34,280,833 3,428,083 12,154,094 15,582,177
Ordinary shares issued     90,000,000 9,000,000 (119,000) 8,881,000
At 31 March 2008    124,280,833 12,428,083 12,035,094 24,463,177
Ordinary shares confer upon the holder the right to vote at Company meetings and the right to receive any dividends payable.
22a. Share options
Share options outstanding at the beginning and end of the year were as follows:
   Exercise At   At 
 Exercisable Date price 31 March  (Forfeited/ 31 March 
Option from granted  p 2007 Granted lapsed) 2008
SES 27.04.03 27.04.00 137.50 4,200 — (4,200) —
SES 11.06.05 11.06.02 52.00 20,000 — (20,000) —
EMI 04.07.04 04.07.01 121.50 38,722 — (38,722) —
EMI 11.06.05 11.06.02 52.00 36,000 — (36,000) —
EMI 16.07.06 16.07.03 28.50 27,000 — (27,000) —
EMI 30.06.07 30.06.04 19.00 67,500 — (67,500) —
EMI 05.04.08 05.04.05 11.50 375,000 — — 375,000
EMI 16.08.08 16.08.05 10.00 69,500 — (11,000) 58,500
EMI 17.10.08 17.10.05 10.00 500,000 — — 500,000
EMI 30.08.09 30.08.06 10.00 250,000 — — 250,000
EMI 26.01.10 26.01.07 10.00 100,000 — (100,000) —
Unapproved 08.05.10 08.05.07 10.00 — 6,217,938 — 6,217,938
EMI 08.05.10 08.05.07 10.00 — 3,157,125 (300,000) 2,857,125
EMI 13.08.10 13.08.07 13.25 — 75,000 — 75,000
EMI 24.09.10 24.09.07 12.75 — 75,000 — 75,000
EMI 22.10.10 22.10.07 12.75 — 50,000 — 50,000
EMI 02.11.10 02.11.07 13.25 — 300,000 — 300,000
EMI 19.11.10 19.11.07 13.75 — 300,000 — 300,000
EMI 03.12.10 03.12.07 14.00 — 300,000 — 300,000
    1,487,922 10,475,063 (604,422) 11,358,563
All options are exercisable from the date shown above and before the tenth anniversary thereof.
All options granted under the Senior Executive Share (“SES”) Options are, for tax purposes, treated as unapproved.
Options and exercise prices as shown prior to post year end seven for one share consolidation. IS Pharma plc / annual report and accounts 2008  45
22b. Share-based payment
    2008  2007  
    Weighted  Weighted  
    average   average 
    exercise  exercise   
    price 2008 price 2007 
EMI, Unapproved and SES Options (excluding those pre 7 November 2002)    £ Number  £ Number
Outstanding at beginning of the year    0.112 1,389,000 0.116 1,049,000
Granted during the year    0.104 10,475,063 0.100 550,000
Forfeited during the year    (0.215) (91,500) (0.100) (200,000)
Exercised during the year    — — — —
Lapsed during the year    (0.101) (414,000) (0.100) (10,000)
Outstanding at end of the year    0.104 11,358,563 0.112 1,389,000
Range of exercise prices     10.0p   10.0p 
     to 14.0p  to 28.5p
Weighted average contractual life      9 years  8.6 years
      2008 2007
Option pricing model used      Binomial Binomial
Weighted average share price (p)      10.0 10.0
Weighted average exercise price (p)    
– EMI      10.4 11.2
Weighted average fair value of options granted in the year (p)    
– EMI      5.11 3.9
Expected volatility (%)      51.1% 50.3%
Dividend yield (%)      N/A N/A
Risk-free interest rate (%)    
– EMI      5.5% 4.2%
Expected lives (years)    
– EMI      3.4 6.5
The expected volatility is based upon the historical volatility of the underlying security adjusted for any expected changes to future volatility due 
to publicly available information.
The charge for equity-settled share-based payments in respect of share options is £178,717 (2007: £14,165).
23. Retirement benefits
The Group operates a defined contribution scheme and also makes contributions to personal pension schemes of certain senior employees 
and Directors.
Pension costs for defined contribution schemes in 2008 are £64,792 (2007: £51,154).
24. Reserves
The nature and purpose of each reserve within owners’ equity is as follows:
Reserve Description and purpose
Share premium Amount subscribed for share capital in excess of nominal value
Other reserves Cumulative expense of equity-settled share-based payments recognised in the consolidated income statement
Retained earnings Cumulative net gains and losses recognised in the consolidated income statement
25. Capital commitments
There were no capital commitments at the year end. 46  annual report and accounts 2008 / IS Pharma plc
notes forming part of the consolidated accounts continued
for the year ended 31 March 2008 
26. Acquisitions during the year
On 10 May 2007 the Company acquired the entire share capital of Acorus Therapeutics Limited.
Details of the fair value of identifiable assets and liabilities acquired, purchase consideration and goodwill are as follows:
      Fair value Provisional 
     Book value adjustments fair value 
     £ £ £
Intangible assets     — 2,160,337 2,160,337
Inventory     275,489 — 275,489
Trade and other receivables     545,525 — 545,525
Cash and cash equivalents      666,915 — 666,915
Trade and other payables     (67,157) — (67,157)
Current tax payable     (305,673) — (305,673)
Deferred tax arising on date of acquisition at 30%     — (648,101) (648,101)
Net assets acquired     1,115,099 1,512,236 2,627,335
Consideration paid   
Shares issued       1,238,000
Loan note instruments       3,878,751
Cash consideration       8,115,099
Costs of acquisition       629,713
Total consideration       13,861,563
Goodwill       11,234,228
Purchase consideration settled in cash       8,115,099
Costs of acquisition       629,713
Cash and cash equivalents in subsidiary acquired       (666,915)
Cash outflow on acquisition       8,077,897
The only intangible assets that were in existence at the date of acquisition were the trademarks. These assets were not separately recognised 
on the balance sheet as they did not meet the recognition criteria of IAS 38. Therefore, the carrying value of such instruments at acquisition 
was £nil.
The fair value adjustments in respect of intangible assets are due to the recognition of £2.2m in respect of trademarks which have been valued 
by applying the Royalty Relief Method to the forecast cash flows that were expected to be generated by the trademarks at the date of the 
business combination.
The fair value of the shares issued was determined by reference to their quoted market price of 12.38p at the date of acquisition.
The loan note instruments are redeemable (together with accrued interest) in five equal instalments at least twelve months apart upon 
achievement of milestone events dependent upon the cumulative net sales of the acquired company over a six year period following the 
date of acquisition. The amount included represents the Directors’ estimate of the fair value of the amount payable.
The main factors leading to the recognition of goodwill are:
I  the presence of certain intangible assets, such as the non-contractual customer relationships of the acquired entity, which do not qualify 
for separate recognition; and
I  synergistic distribution and marketing opportunities which result in the Group being prepared to pay a premium. 
Since the acquisition date, Acorus Therapeutics Limited has contributed £751,142 to Group profit. If the acquisition had occurred on 1 April 2007, 
Group revenue would have been £819,427 and Group profit for the year would have been £2,004,407. IS Pharma plc / annual report and accounts 2008  47
27. Goodwill and impairment
No impairment losses in respect of goodwill have been recognised in the year ending 31 March 2008. For the purposes of performing impairment 
reviews, the Directors have identified two cash-generating units (“CGUs”). Annual impairment reviews are performed as at 31 March for all CGUs. 
These reviews compare the carrying value of each CGU with the present value of future cash flows arising from the use of assets of the unit 
(value in use). If the value in use is less than the carrying value of the CGU, an impairment loss is recognised immediately in the income statement. 
Details of goodwill allocated to CGUs for which the amount of goodwill so allocated is significant in comparison to total goodwill is as follows:
      Goodwill Goodwill 
      2008 2007 
      £ £
Pharmaceutical Products CGU      8,085,281 —
Medical Devices CGU      3,148,947 —
      11,234,228 —
The recoverable amounts of all the above CGUs have been determined from value in use calculations based on cash flow projections from 
formally approved forecasts over five years which are then extrapolated to cover a ten year period to 31 March 2018. Other major assumptions 
are as follows:
      Pharmaceutical  Medical 
      products devices 
      2008 2008 
      % %
Discount rate (pre tax)      15% 15%
Extrapolated forecast overhead inflation      4% 4%
Extrapolated growth rate      4% 4%
      Pharmaceutical  Medical 
      products devices 
      2007 2007 
      % %
Discount rate (pre tax)      — —
Extrapolated forecast overhead inflation      — —
Extrapolated growth rate      — —
Gross margins based on past experience are applied to expected sales.
Discount rates are based on the Group’s Capital Asset Pricing Model-derived discount rate adjusted to reflect management’s assessment 
of specific risks related to the CGUs. 
Forecast growth rates in sales are based on opening new markets through synergistic marketing and distribution opportunities, for which 
the Directors have estimated significant potential. Growth rates for the year following the budget correspond to overhead inflation. 
Overhead inflation has been based on independent economic data and the Group’s experience of the market place.
The aggregate recoverable amount for the CGUs of £18,668,098 exceeds their aggregate carrying amount as shown below:
       2008 
       £
Aggregate recoverable amount       18,668,098
Aggregate carrying amount       (11,234,228)
Net aggregate carrying value       7,433,870
If the discount rate increased from 15.00% to 27.31% based on the above key assumptions, the carrying amount and recoverable amount 
would be the same.
28. Leases
The total future minimum lease payments under operating leases are due as follows:
      2008 2007 
      £ £
Within one year      52,522 19,961
Within two to five years      151,828 201,319
After five years      204,350 221,280
The Group leases its head office premises under a short-term lease. 48  annual report and accounts 2008 / IS Pharma plc
notes forming part of the consolidated accounts continued
for the year ended 31 March 2008
29. Related party transactions
Directors’ interests are disclosed in the report of the Directors and in the Remuneration Report.
      2008 2007 
      £ £
Acquisitions 
An entity controlled by key management personnel      6,615,926 —
During the year the entire share capital of Acorus Therapeutics Limited was purchased. This entity was formerly under significant influence 
of P Murray, a Non-Executive Director of IS Pharma plc, who owned 50% of the share capital. P Murray received 50% of the consideration paid on 
the acquisition of Acorus Therapeutics Limited which is described in note 26. Part of the consideration will be paid through the settlement of loan 
notes described in note 26. The Directors’ estimate of the fair value of loan notes payable to P Murray which is outstanding at 31 March 2008 
is £1,939,376.
      2008 2007 
      £ £
Purchases of services       
An entity controlled by key management personnel      125,000 — 
Services were bought from an entity controlled by key management personnel. The entity controlled by key management personnel 
is Speciality European Pharma International AG, of which H G McMillan, Non-Executive Chairman, is Chief Executive Officer of its 
Parent Company, Speciality European Pharma Limited.
Following the acquisition of Acorus Therapeutics Limited, inventory owned by the vendors of Acorus Therapeutics Limited, which included 
P Murray, was purchased.
30. Notes to the cash flow statement
Cash and cash equivalents comprises:
      2008 2007 
      £ £
Cash available on demand      2,304,896 1,427,332
Significant non-cash transactions are as follows:
      2008 2007 
      £ £
Equity consideration for business combinations      1,238,000 —
31. Events after the balance sheet date
Capital reduction and share consolidation
On 21 April 2008 the shareholders of the Company agreed the following changes to its capital:
I  consolidation of the existing ordinary shares on the basis of one ordinary share for every seven ordinary shares issued;
I  increasing the authorised share capital to £28,000,000 by creating an additional 11,428,572 consolidated ordinary shares; and
I  cancellation of its share premium account and reduction in accumulated deficit on the retained earnings by £12,035,094.
Acquisition of Speciality European Pharma International AG
On 25 April 2008 the Company completed the acquisition of Speciality European Pharma International AG (“SEPI AG”) a wholly owned 
subsidiary of Speciality European Pharma Limited. SEPI AG is a Swiss based pharmaceutical company with a profitable portfolio of specialist 
hospital pharmaceutical products. The consideration for the acquisition was satisfied by an initial cash payment of £9.25m subject to a completion 
adjustment and up to a further £5.00m in deferred consideration, conditional on SEPI AG meeting certain regulatory criteria and sales targets.
In order to satisfy the cash component of the acquisition and to enable the Company to implement its strategy, the Board raised 
£10.00m by way of a placing of 13,000,000 ordinary shares at 77p per placing share. 
Name change
In conjunction with the acquisition the Company changed its name from Maelor plc to IS Pharma plc.  IS Pharma plc / annual report and accounts 2008  49
company balance sheet 
as at 31 March 2008
      2008 2007 
     Note £ £
Fixed assets     
Investments in subsidiaries     2 14,714,298 2
       14,714,298 2
Current assets     
Debtors     3 487,928 225,793
Cash at bank and in hand      213,277 1,150,022
      701,205 1,375,815
Creditors: amounts falling due within one year     4 (909,444) (2)
Net current (liabilities)/assets      (208,239) 1,375,813
Total assets less current liabilities      14,506,059 1,375,815
Creditors: amounts falling due after more than one year    5 (3,138,148) —
Net assets      11,367,911 1,375,815
Capital and reserves     
Called up share capital     6 12,428,083 3,428,083
Share premium account     7 11,797,094 12,154,094
Share option reserve     7 214,610 37,182
Profit and loss account     7 (13,071,876) (14,243,544)
Equity shareholders’ funds      11,367,911 1,375,815
The accounts on pages 49 to 52 were approved by the Board of Directors and authorised for issue on 23 July 2008 and were signed on its 
behalf by:
T Wright     N J Goldsmith
Director     Director 50  annual report and accounts 2008 / IS Pharma plc
notes forming part of the company accounts
for the year ended 31 March 2008
1. Accounting policies
The accounts have been prepared under the historical cost convention and are in accordance with applicable accounting standards.
The following principal accounting policies have been applied:
Valuation of investments
Investments held as fixed assets are stated at cost less any provision for impairment. Investments held as current assets are stated at the lower 
of cost and net realisable value.
Finance costs
Finance costs are charged to profit over the term of the debt so that the amount charged is at a constant rate on the carrying amount. Finance 
costs include issue costs, which are initially recognised as a reduction in the proceeds of the associated capital instrument.
Taxation
The charge for taxation is based on the profit for the year and takes into account deferred taxation.
Current tax is measured at amounts expected to be paid using the tax rates and laws that have been enacted or substantively enacted by the 
balance sheet date.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date except 
that the recognition of deferred tax assets is limited to the extent that the Company anticipates making sufficient taxable profits in the future 
to absorb the reversal of the underlying timing differences.
Deferred tax balances are not discounted.
Dividends
Equity dividends are recognised when they become legally payable. Final equity dividends are recognised when approved by the shareholders 
at an Annual General Meeting.
Dividends on shares wholly recognised as liabilities are recognised as expenses and classified within interest payable.
Financial liabilities and equity
Financial liabilities and equity are classified according to the substance of the financial instrument’s contractual obligations, rather than the 
financial instrument’s legal form. 
Share-based payments
In accordance with FRS 20 “Share-based Payments” the fair value of equity-settled share-based payments to employees is determined at the 
date of the grant and is expensed on a straight line basis over the vesting period based on the Group’s estimate of share options that will 
eventually vest. In the case of options granted, fair value is measured by a binomial pricing model. 
Company profit and loss account
The retained profit for the year ended 31 March 2008 was £1,170,379 (2007: loss of £32,630).
As permitted under Section 230 of the Companies Act 1985, no separate profit and loss account is presented in respect of the Parent Company. IS Pharma plc / annual report and accounts 2008  51
2. Investments
       £
Cost
At 1 April 2007       912,017
Capital contribution       178,717
Acquisition of Acorus Therapeutics Limited       13,623,564
At 31 March 2008       14,714,298
Impairment       
At 1 April 2007       912,015
Release of impairment provision       (912,015)
At 31 March 2008       —
Net book value       
At 31 March 2007       2
At 31 March 2008       14,714,298
 Country of    Proportion of 
Name incorporation   ownership interest   Activity
IS Pharmaceuticals Limited UK   100%  Pharmaceuticals
Acorus Therapeutics Limited UK   100%  Pharmaceuticals
Maelor Laboratories Limited UK   100%  Dormant
3. Debtors
      2008 2007 
      £ £
Amounts owed by Group undertakings      423,177 225,793
Prepayments       64,751 —
      487,928 225,793
Amounts paid by Group undertakings are due after one year.
4. Creditors: amounts falling due within one year
      2008 2007 
      £ £
Trade creditors      1,490 —
Other creditors      — 2
Loan note instruments      907,954 —
      909,444 2
5. Creditors: amounts falling due after more than one year
      2008 2007 
      £ £
Loan note instruments      3,138,148 — 52  annual report and accounts 2008 / IS Pharma plc
6. Share capital
    Authorised  Authorised
    2008 2008 2007 2007 
    Number £ Number £
Ordinary shares of 10p each    200,000,000 20,000,000 80,000,000 8,000,000
    Issued and fully paid  Issued and fully paid
    2008 2008 2007 2007 
    Number £ Number £
Ordinary shares of 10p each    124,280,833 12,428,083 34,280,833 3,428,083
The Company issued ordinary shares during the year as detailed below:
      Premium  
      less costs of Consideration 
     Nominal  raising equity after costs 
    Number £ £ £
At 1 April 2007    34,280,833 3,428,083 12,154,094 15,582,177
Issued in consideration of the acquisition of Acorus Therapeutics Limited  90,000,000 9,000,000 (357,000) 8,643,000
At 31 March 2008    124,280,833 12,428,083 11,797,094 24,225,177
7. Reserves
       Shares to Share Profit and 
     be issued premium loss account  
     £ £ £
At the beginning of the year     37,182 12,154,094 (14,243,544)
Proceeds from issue of ordinary shares     — — —
Share options issued     178,717 — —
Transfers     (1,289) — 1,289
Net profit for the year     — — 1,170,379
Fundraising fees     — (357,000) —
At the end of the year      214,610 11,797,094 (13,071,876)
8. Reconciliation of movement in shareholders’ funds
      2008 2007 
      £ £
Profit/(loss) for the financial year      1,170,379 (32,630)
Shares issued      8,643,000 —
Shares to be issued      178,717 14,165
Net increase/(reduction) in shareholders’ funds      9,992,096 (18,465)
Opening shareholders’ funds      1,375,815 1,394,280
Closing shareholders’ funds      11,367,911 1,375,815
notes forming part of the company accounts continued
for the year ended 31 March 2008 IS Pharma plc / annual report and accounts 2008  53
Notice is hereby given that the Annual General Meeting of IS Pharma plc will be held on Wednesday 10 September 2008 at 11.00 am 
at Morrison & Foerster, for the following purposes:
Ordinary business
Resolution number 1
To receive and adopt the report and accounts for the financial year ended 31 March 2008 together with the report of the Directors 
and independent auditor thereon.
Resolution number 2
To receive the Remuneration Report and the report of the independent auditor on the auditable part of the Remuneration Report.
Resolution number 3
To re-elect as a Director T Wright, who retires by rotation.
Resolution number 4
To re-elect as a Director P Murray, who retires by rotation.
Resolution number 5
To appoint BDO Stoy Hayward LLP as auditor of the Company, to hold office from the conclusion of this meeting until the conclusion of 
the next Annual General Meeting at which the accounts are laid before the members, and to authorise the Directors to fix its remuneration.
Special business
To consider and if thought fit to pass the following, of which resolution number 6 will be proposed as an ordinary resolution and resolution 
number 7 will be proposed as a special resolution:
Resolution number 6
Authority to allot shares
THAT 
The Directors be generally and unconditionally authorised to exercise all the powers of the Company to allot relevant securities (within the 
meaning of Section 80 of the Companies Act 1985) (“the Act”) up to a maximum nominal amount of £6,471,917, representing the difference 
between the Company’s authorised and issued share capital, such authority (unless previously revoked or varied) to expire on the date falling 
15 months after the date of the passing of this resolution or at the conclusion of the next Annual General Meeting of the Company (whichever 
shall be the earlier) but so that the Company may, before such expiry, make an offer or agreement which would or might require relevant 
securities to be allotted after such expiry and the Directors may allot relevant securities pursuant to any such offer or agreement as if such 
authority had not expired and further that such authority is to be in substitution for all other authorities conferred upon the Directors in 
relation to the allotment of relevant securities. 
Resolution number 7
Disapplication of pre-emption rights on allotment
THAT
The Directors be and are hereby empowered in accordance with Section 95 of the Act to allot equity securities (as defined in Section 94 of the 
Act) for cash pursuant to the authority conferred on them by resolution number 6 above as if Section 89(1) of the Act did not apply to such 
allotment provided that the power conferred by this resolution shall be limited to:
(i)  the allotment of equity securities by way of a rights issue or other pre-emptive offer in favour of the holders of ordinary shares in the capital 
of the Company where the equity securities respectively attributable to the interests of such holders are proportionate (as nearly as may be) 
to the respective number of ordinary shares in the capital of the Company held by them on the record date for such allotment, subject only 
to such exclusions or other arrangements as the Directors may consider necessary or expedient to deal with the fractional entitlements or 
legal or practical difficulties under the laws of or requirements of any recognised regulatory body or any stock exchange in any territory 
or otherwise; and
notice of annual general meeting 54  annual report and accounts 2008 / IS Pharma plc
notice of annual general meeting continued
Special business continued
Resolution number 7 continued
(ii)  the allotment (other than as set out in (i) above) of equity securities up to an aggregate nominal value not exceeding £3,075,440, 
representing 10% of the issued share capital;
  and so that this power, unless renewed or revoked, shall expire on the date falling 15 months after the date of the passing of this resolution 
or at the end of the next Annual General Meeting of the Company (whichever shall be the earlier).
By order of the Board
N J Goldsmith Office Village
Secretary Chester Business Park
23 July 2008 Chester CH4 9QZ
Notes
1.  A member entitled to attend and vote at the Annual General Meeting may appoint a proxy (who need not be a member of the Company) to attend 
and, on a poll, to vote on his or her behalf. In order to be valid an appointment of proxy must be returned by one of the following methods:
I in hard copy form by post, by courier or by hand to Capita Registrars, PO Box 25, 34 Beckenham Road, Beckenham, Kent BR3 4BR; or
I in the case of CREST members, by utilising the CREST electronic proxy appointment service in accordance with the procedures set out below;
 and in each case must be received by the Company not less than 48 hours before the time of the meeting.
  CREST members who wish to appoint a proxy or proxies by utilising the CREST electronic proxy appointment service may do so by utilising the procedures 
described in the CREST Manual. CREST Personal Members or other CREST sponsored members, and those CREST members who have appointed a voting 
service provider(s), should refer to their CREST sponsor or voting service provider(s), who will be able to take the appropriate action on their behalf. In order 
for a proxy appointment made by means of CREST to be valid, the appropriate CREST message (a CREST Proxy Instruction) must be properly authenticated in 
accordance with CRESTCo’s specifications and must contain the information required for such instructions, as described in the CREST Manual. The message, 
regardless of whether it relates to the appointment of a proxy or to an amendment to the instruction given to a previously appointed proxy must, in order to 
be valid, be transmitted so as to be received by the issuer’s agent (ID RA10) by the latest time(s) for receipt of proxy appointments specified in the notice of 
meeting. For this purpose, the time of receipt will be taken to be the time (as determined by the timestamp applied to the message by the CREST Applications 
Host) from which the issuer’s agent is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST. The Company may treat as invalid 
a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001. CREST members and, where 
applicable, their CREST sponsors or voting service providers should note that CRESTCo does not make available special procedures in CREST for any particular 
messages. Normal system timings and limitations will therefore apply in relation to the input of CREST Proxy Instructions. It is the responsibility of the CREST 
member concerned to take (or, if the CREST member is a CREST personal member or sponsored member or has appointed a voting service provider(s) to 
procure that his CREST sponsor or voting service provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of the 
CREST system by any particular time. In this connection, CREST members and, where applicable, their CREST sponsors or voting service providers are referred, 
in particular, to those sections of the CREST Manual concerning practical limitations of the CREST system and timings.
2.  A form of proxy is enclosed for use by shareholders and, if appropriate, must be deposited with the Company’s registrars, Capita Registrars, PO Box 25, 
34 Beckenham Road, Beckenham, Kent BR3 4BR not less than 48 hours before the time of the Annual General Meeting. Appointment of a proxy does 
not preclude a shareholder from attending the Annual General Meeting and voting in person.
3.  Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, in order to be able to attend and vote at the Annual General Meeting or any 
adjourned meeting, (and also for the purposes of calculating how many votes a person may cast), a person must have his/her name entered on the register 
of members of the Company by 11.00 am on Monday 8 September 2008 (or not less than 48 hours before any adjourned meeting). Changes to entries on the 
register of members after this time shall be disregarded in determining the rights of any person to attend or vote at the meeting.
4.  Copies of the Directors’ service contracts with the Company and the register of interests of the Directors and their families in the share capital of the Company 
are available for inspection at the registered office of the Company during usual business hours (Saturdays, Sundays and public holidays excepted) and will be 
available at the place of the Annual General Meeting from 15 minutes prior to and during the Annual General Meeting. 
5.  In order to facilitate voting by corporate representatives at the Meeting, arrangements will be put in place at the Meeting so that: (i) if a corporate shareholder 
has appointed the Chairman of the Meeting as its corporate representative, with instructions to vote on a poll in accordance with the directions of all the 
other corporate representatives for that shareholder at the meeting who have been appointed in respect of different parts of the holding of that corporate 
shareholder, then on a poll those corporate representatives will give voting directions to the Chairman and the Chairman will vote (or withhold a vote) in respect 
of each different part of the shareholding as corporate representative in accordance with the directions he has received from such corporate representatives, 
in relation to the respective parts of the shareholding in respect of which they are each appointed; or (ii) if more than one corporate representative for the 
same corporate shareholder attends the Meeting but the corporate shareholder has not appointed the Chairman of the Meeting as its corporate representative, 
a designated corporate representative will be nominated from those corporate representatives who attend, who will vote on a poll in accordance with the 
directions he receives from the other corporate representatives, in respect of the parts of the corporate shareholder’s shareholding, in respect of which such 
corporate representatives have each been appointed. Corporate shareholders are referred to the guidance issued by the Institute of Chartered Secretaries 
and Administrators on proxies and corporate representatives – www.icsa.org.uk – for further details of this procedure. The guidance includes a sample form 
of representation letter if the Chairman is being appointed as described in (i) above. IS Pharma plc / annual report and accounts 2008 55
form of proxy
I/We, the undersigned, being (an) ordinary shareholder(s) of IS Pharma plc, hereby appoint the Chairman of the meeting or failing him 
.....................................................................................................................................................................................................................................................
as my/our proxy to vote for me/us and on my/our behalf at the Annual General Meeting of the Company to be held on Wednesday 10 September 2008 
and at any adjournment thereof.
This proxy is authorised to act in respect of .................................................................................................................................number of shares held by me/us.
 Please tick here if this proxy appointment is one of multiple appointments being made.
Resolutions    For Against Withheld
Ordinary business  
Resolution number 1 
To receive and adopt the report and accounts for the year ended 31 March 2008 together with the report of the  
Directors and independent auditor thereon.  
Resolution number 2 
To receive the Remuneration Report and the report of the independent auditor on the auditable part of the  
Remuneration Report.  
Resolution number 3 
To re-elect as a Director T Wright, who retires by rotation.  
Resolution number 4 
To re-elect as a Director P Murray, who retires by rotation.  
Resolution number 5 
To appoint BDO Stoy Hayward as auditor of the Company, to hold office from the conclusion of this meeting 
until the conclusion of the next Annual General Meeting at which the accounts are laid before the members  
and to authorise the Directors to fix its remuneration. 
Special business  
Resolution number 6 
To authorise the Directors to allot shares up to a maximum amount of £6,471,917.  
Resolution number 7 
To authorise the Directors to disapply pre-emption rights.  
Please indicate with an X in the spaces above how you wish your vote to be cast on a poll. Unless otherwise instructed the proxy will vote or abstain from voting as he 
thinks fit.
As witness my/our hand(s) this  ..........................................................................................day of  ......................................................................................... 2008
Signature  ......................................................................................................................................................................................................................................
Name and initials (block capitals)  ..................................................................................................................................................................................................
Please signal your intention to attend the Annual General Meeting, if applicable, by ticking the box 
Notes
1.  This form of proxy must be received by Capita Registrars, Proxies, PO Box 25, 34 Beckenham Road, Beckenham BR3 4BR, or in the case of CREST members 
by using the CREST proxy voting appointment service, not less than 48 hours before the time appointed for the meeting. The form must be signed. If someone 
else signs the form on your behalf, you or that person must send the power of attorney or other written authority under which it is signed to the address stated 
above. Crest members should refer to Note 1 of the Notice of Annual General Meeting in relation to the appointment of a proxy appointment via CREST.
2.  A corporation must execute this form either under its Company seal or under the hand of two Directors or one Director and the Secretary or under the hand 
of an officer or attorney duly authorised in writing.
3.  You are entitled to appoint one or more proxies of your own choice to exercise all or any of your rights to attend, speak and vote at the meeting. A proxy need 
not be a member of the Company. If you appoint more than one proxy, each proxy must be appointed to exercise the rights attached to a different share or 
shares held by you. You can only appoint proxies using the procedures set out in these notes.
4.  To appoint more than one proxy, you will need to complete a separate proxy form in relation to each appointment. Additional proxy forms may be obtained 
by contacting the Company’s registrar at Capita Registrars, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU or you may photocopy this form. 
You will need to state clearly on each proxy form the number of shares in relation to which the proxy is appointed. Please therefore indicate in the appropriate 
space the number of shares in relation to which they are authorised to act as your proxy. Please also indicate by ticking the box provided if the proxy instruction is 
one of multiple instructions being given. All forms must be signed and should be returned together in the same envelope. A failure to specify the number of 
shares each proxy appointment relates to or specifying a number in excess of those held by the member may result in the proxy appointment being invalid.
5.  In order to facilitate voting by corporate representatives at the Meeting, arrangements will be put in place at the Meeting so that: (i) if a corporate shareholder 
has appointed the Chairman of the Meeting as its corporate representative, with instructions to vote on a poll in accordance with the directions of all the 
other corporate representatives for that shareholder at the meeting who have been appointed in respect of different parts of the holding of that corporate 
shareholder, then on a poll those corporate representatives will give voting directions to the Chairman and the Chairman will vote (or withhold a vote) in respect 
of each different part of the shareholding as corporate representative in accordance with the directions he has received from such corporate representatives, 
in relation to the respective parts of the shareholding in respect of which they are each appointed; or (ii) if more than one corporate representative for 
the same corporate shareholder attends the Meeting but the corporate shareholder has not appointed the Chairman of the Meeting as its corporate 
representative, a designated corporate representative will be nominated from those corporate representatives who attend, who will vote on a poll in 
accordance with the directions he receives from the other corporate representatives, in respect of the parts of the corporate shareholder’s shareholding, 
in respect of which such corporate representatives have each been appointed. Corporate shareholders are referred to the guidance issued by the Institute 
of Chartered Secretaries and Administrators on proxies and corporate representatives – www.icsa.org.uk – for further details of this procedure. The guidance 
includes a sample form of representation letter if the Chairman is being appointed as described in (i) above.
6. Returning the form of proxy will not prevent you from attending the meeting and voting in person.
 business reply style
Business Reply
Licence Number
MB 122
Capita Registrars
Proxies
PO Box 25
34 Beckenham Road
Beckenham
BR3 4BR
first fold
second fold
third fold and tuck in Directors
H G McMillan (non-Executive Chairman) 
T Wright (Chief Executive Officer) 
n J Goldsmith (finance director) 
A Hardy (operations director) 
J H Gregory (non-Executive director) 
P Murray (non-Executive director)
Secretary
n J Goldsmith 
Registered office
Office Village 
Chester Business Park 
Chester CH4 9QZ
Company registration number
3337415
Brokers
Noble & Company Limited
120 old Broad Street 
London EC2n 1Ar
Nominated adviser
Noble & Company Limited
120 old Broad Street 
London EC2n 1Ar
Auditor
Baker Tilly UK Audit LLP
number one old Hall Street 
Liverpool L3 9Sx
Principal solicitors 
Morrison & Foerster MNP
City Point 
one ropemaker Street 
London EC2y 9AW
Principal banker
HBoS plc
1st floor 
8 Princes Parade 
Princes dock 
Liverpool L3 1dL
Registrars
Capita Registrars
northern House 
Woodsome Park 
fenay Bridge 
Huddersfield HD8 0GA
Telephone: 0871 664 0300 
(calls cost 10p per minute  
plus network extras)
company information
optiflo™ Catheter Maintenance Solutions is a trademark of C.r . Bard Inc. 
or an affiliate. IS Pharma plc
Office Village 
Chester Business Park 
Chester CH4 9QZ
Telephone: +44 (0)1244 625150
Telefax: +44 (0)1244 625151
Website: www.ispharma.plc.uk
Email: enquiries@ispharma.plc.uk
IS Pharma’s commitment to environmental issues 
is reflected in this annual report which has been 
printed on revive Gloss, a recycled paper stock 
which contains 75% recovered fibre and 25% virgin 
fibre, and Revive 100 Offset which is 100% recycled 
from post consumer waste. 
This document was printed by Beacon Press using 
, their environmental print technology 
which minimises the impact of printing on the 
environment. All energy used comes from renewable 
sources, vegetable based inks have been used and 
94% of all waste associated with this production has 
been recycled. The printer is a carbon neutral company.
Both the printer and the paper mill are registered 
to ISo 14001.
Cert no. SGS-COC-O620