making tomorrow’s medicines
Cobra Biomanufacturing Plc
Annual Report and Accounts 2003
for the year ended 30 September 2003 Contents
Page
Financial highlights                         1
Chairman’s statement 2
Chief Executive’s review 3-6
Financial review 7-9
Board of directors 10
Senior management 11
Report of the directors 12-14
Corporate governance 15-16
Report on directors’ remuneration 17-21
Report of the auditors 22
Group profit and loss account 23
Balance sheets 24
Group statement of cash flows 25
Reconciliation of net cash flow 
to movement in net funds                 26
Notes to the financial statements 27-40
Notice of Annual General Meeting 41-42
Shareholder information 43
Directors and advisors 44
Glossary of terms 45 Cobra Biomanufacturing Plc 1
Financial highlights 2003
Building a world leading biopharmaceutical manufacturer
delivering innovative solutions to clients and growing profits
for shareholders
0
1
1998
0.1
1999
0.2
2000
0.5
2001
1.1
2002 2003
6.0
2
3
4
5
6
7
2.5
MANUFACTURING REVENUE
Up 137% £6.0m (2002 £2.5m)
(5.00)
(4.00)
(3.00)
(2.00)
(1.00)
0.00
1.00
PROFIT BEFORE TAX
£0.8m (2002 £0.9m loss)
(4.0)
2001
(2.3)
2002 2003
(2.0)
0.0
2.0
4.0
6.0
8.0
2.6
CASH AT BANK
£7.3m (2002 £2.6m)
7.3
(4.0)
2002
(9.6)
2003
(2.0)
0.0
2.0
4.0
(12.0)
(10.0)
(8.0)
(6.0)
6.0
8.0
1.0
6.9
EARNINGS PER SHARE
Basic 6.9p (2002 1.0p)
Adjusted 6.9p (2002 minus 9.6p)
6.9
£m
Pence per share
£m
£m
2002
(0.9)
2003
0.8
2001
(4.7) Chairman’s statement
Cobra Biomanufacturing Plc 2
Cobra’s first full financial year as an independent Plc has
fulfilled the promise of the business on its listing on the
Alternative Investment Market in June 2002.  Contract
manufacturing revenue for the financial year ending 30
September 2003 of £6.0 million is 137% ahead of the
previous year (2002 £2.5million) with a profit before tax
of £0.8 million (2002 £0.9 million loss) and cash flow
from our existing Keele Facility remaining positive.
These results have been achieved through increased
business development activity, particularly in the US
following the opening of our office in Chicago in
November 2002 (revenue from the US, the world’s
largest biopharmaceutical market, provided 24% of the
Group’s revenue in the year) and was supported by
repeat business from customers worldwide,
representing 67% of total revenue for 2003. 
Cobra’s scale of potential business in the supply of early-
stage clinical trials provided the impetus behind a
doubling of capacity in June 2003, through the
acquisition of an additional manufacturing site in
Oxford ("the Oxford Facility"), and a Placing and Open
Offer raising £5.2 million before expenses, which was 5
times oversubscribed. The Oxford Facility will be a
dedicated process development and production unit.
This will expand both DNA and Virus manufacturing
capacity, and importantly, will also allow for Phase I and
II Protein manufacture. This makes Cobra the only
organisation that we know of able to offer customers
all forms of biopharmaceutical products during their
critical development phases.
During the financial year we completed contracts for 24
customers, we maintained 27 customer programmes
and entered into an increasing number of long-term
supply agreements. These agreements provide the
option for Cobra to supply late stage clinical trial
materials and in-market supply and they cover products
with a relatively high probability of clinical and
commercial success. The Group is currently investigating
ways of accessing larger scale facilities in anticipation of
such an outcome.  
It should be appreciated that even without such
facilities, our business model provides for the Group to
participate in a customer’s product success via
technology transfer fees and/or royalties on sales where
products incorporate the Group’s patents and know-
how.
Accordingly, we continue to research new ways of
formulating and manufacturing with several new
patent applications in progress. During the year our
unique DNA process patent was granted in Europe
following its earlier approval in the US. This patent
relates to the large-scale manufacture of Plasmid DNA
medicines and vaccines to the rigorous quality standards
required by the regulatory authorities.
The funding environment for biotechnology companies
in the UK and Europe remains an issue, and many of
these companies are Cobra’s potential customers. The
US market remains relatively buoyant and a further
expansion of business development in the US is
underway. Recruitment of high calibre people is also
now taking place in Oxford to progressively staff the
new facility with the result that over the next financial
year employee numbers for the Group will almost
double. We anticipate key appointments in Human
Resource Management, Account Management and
Quality Assurance Management.  
As indicated, further expansion is now under review
and as the scale of the business increases so too will the
range of corporate development options on the one
hand and corporate compliance requirements on the
other. It is therefore with pleasure that I am able to
announce from today the appointment of a third non-
executive director, Michael Gatenby, a chartered
accountant with an Honours degree in Law, and
currently a director of Johnson Service Group Plc, Porvair
Plc, SRS Technology Group Plc and Protherics Plc.
Cobra is a knowledge-led business driven by its highly
qualified and experienced staff, whose commitment and
enthusiasm have resulted in demonstrable success.
These results are a credit to their hard work throughout
the year and I would like to thank everyone for the
positive way they have responded to our new operating
environment. Maintaining this momentum in the
present environment will be challenging, but the
fundamentals are in place to leverage our position in
the world-wide marketplace for biopharmaceuticals,
with market leadership as our goal.
G P Fothergill
Executive Chairman
2 December 2003 Chief Executive’s Review
Cobra Biomanufacturing Plc 3
The year ended 30 September 2003 was a critical year
in Cobra’s development, being the first full financial
year as an independent Plc. Under challenging market
conditions, we have increased contract manufacturing
revenue by 137% to £6.0 million (2002 £2.5 million)
and generated a pre-tax profit of £0.8 million (2002
£0.9 million loss). The foundation for further
expansion was laid with a further successful
fundraising of £5.2 million before expenses and the
acquisition of the new Oxford Facility, doubling our
present capacity. In addition, during 2003 we
concluded a number of deals, which demonstrate the
value of the Group’s technology.
Our Business
Cobra’s mission is to work in partnership with our
customers to accelerate the clinical development of
their products and in so doing add significant value to
their businesses. This added value is achieved by the
application of the most advanced manufacturing
technologies available that deliver products to our
customers of the highest quality standards. Cobra
specialises in the manufacture of new wave, high value,
potent medicines, whose origins are in the DNA
revolution and whose commercialisation requires the
development of innovative manufacturing solutions. 
Business Climate
The Group has been able to increase manufacturing
revenue in a difficult trading environment. Revenue
from the US has increased by 158%, this is the primary
target market for our services because 75% of the
global biotechnology research and development spend
is in the US. We have increased revenue by 151% in the
UK, the location of the most exciting product oriented
companies in Europe. In 2003 Continental Europe
revenue has dropped by 27%; a reflection of the
appetite for biotechnology funding in Europe. The
strength of Cobra’s offering is validated by our
increased sales under such an adverse trading
environment. We have also been able to establish
strong sales in regions not normally associated with
biotechnology, in particular Australia and South Africa,
with revenue up 928% in the Rest of the World.
Although the reduced level of funds flowing into the
biotechnology sector has weakened the overall market
for Phase I/II biomanufacturing, the reduction in
demand has been offset by the increasing involvement
of non-governmental organisations in vaccines
development and also investment by government
agencies in measures to protect against bio-terrorism. 
During the year sentiment towards the US
biotechnology sector has rebounded and 2003 is set to
become the second best year ever in terms of
financing.  This factor coupled with the predominance
of the US in this sector, makes Cobra’s penetration of
the US market pivotal to our continued growth and we
will increase our sales and marketing effort in the US
through 2004. 
Cobra’s Strategy
The Group’s short-term goal is to become a leader in
the supply of high value, high potency
biopharmaceuticals for early phase clinical trials with a
mid-term objective of moving into the supply of
commercial quantities of these drugs. The foundation
of this growth is in the application of those innovative
manufacturing technologies, which can capture long-
term value for the Group.  
Achieving the mid-term objective is the critical next
stage of the Group’s development. Biopharmaceutical
drugs require expensive specialist manufacturing
facilities. There is a significant risk of product failure in
clinical testing, investment in manufacturing plant is
high risk for all pharmaceutical companies. To manage
such risks contract manufacturers like Cobra need a
diverse pipeline of promising projects feeding through
from early clinical trials. Cobra’s current strategy is to
develop a pipeline of customers with successful
innovative products in early clinical trials to mitigate
the effect of their drug failure on our investment in
commercial manufacture.
Expansion in Oxford
In June 2003, the Group acquired the Oxford Facility,
previously operated by Accentus Plc (a division of AEA
Technology Plc). This acquisition is the keystone of our
expansion strategy. The facility, originally built by
British Biotech Plc for the GMP ("Good Manufacturing
Practice") manufacture of vaccines, is being completely
refurbished and will more than double the Group’s
current capacity. 
Three GMP manufacturing suites, one microbial, one
animal cell and one equipped to manufacture either
type of product will be fully validated and operational 
Cobra manufacturing Increase/
revenue (£000’s) 2003 2002 decrease
UK 2,114 843 151%
US 1,426 553 158%
Europe 711 972 -27%
Rest of the World 1,769 172 928%
Total 6,020 2,540 137% Chief Executive’s Review
Cobra Biomanufacturing Plc 4
Expansion in Oxford (continued)
by the second quarter of 2004. This expansion will
give Cobra the capacity to support up to six GMP
microbial and four animal cell programmes
simultaneously and will also double our process
development capability.
Our Success is Our Clients Success
Cobra not only manufactures products per se but also
provides a comprehensive support service from
cloning through to preparation of the CMC
("Chemistry, Manufacturing and Controls") dossier for
regulatory submission and then supporting our clients
with their ongoing dialogue with the regulatory
agencies. 
The success of this business is founded on excellence
in molecular biology, an innovative approach to
bioprocessing, an overriding commitment to quality
and where possible exceeding the requirements of
the regulatory authorities. This core competency in
advanced molecular biology allows Cobra to
manufacture all the major types of biopharmaceutical
products: Plasmid DNA, genetically engineered
Viruses, recombinant Proteins and Cell Therapies.
Molecular and Cell Biology
Although Cell Line construction revenue in 2003 only
increased by 4%, molecular biology underpins Cobra’s
competitive edge. Most projects handled by the
Group require upfront molecular biology to tailor the
final production cell line for scale up and regulatory
approval. In addition, our Molecular Biology Team
continues to engineer proprietary cell lines; the
cornerstone of our process intellectual property. This
research is aimed at improving the productivity
and/or safety of our partners’ products in ways that
can significantly add value to their products. Our Cell
Line intellectual property ranges from UCOE, an
animal cell expression technology, to Cobra’s
microbial strains designed to enhance product
quality; ORT
®
for antibiotic free manufacture of
biopharmaceuticals; high potency strains of
Salmonella for oral delivery of vaccine antigens and
strains of Escherichia coli and Bacillus subtilis
genetically engineered to reduce contaminant
profiles.  
Plasmid DNA and DNA Vaccines
Cobra has a global reputation for the quality of its
Plasmid DNA. DNA represented 53% of total revenue
for 2003, a 158% increase on 2002. We have
continued to consolidate our position as a major
manufacturer of DNA vaccines (70% of total DNA
revenue for 2003) and a leader in provision of DNA
HIV/AIDS vaccines (64% of total DNA revenue for
2003). The current mode of vaccination used in DNA
vaccination programmes uses a prime with Plasmid
DNA then either a boost with DNA or with a
genetically engineered Virus. Cobra is the only
contract manufacturer providing a "one-stop shop"
for all these strategies.
HIV/AIDS Vaccines
The Group now supports three DNA HIV/AIDS vaccine
programmes sponsored by the International Aids
Vaccine Initiative ("IAVI"), two for the South African
Aids Vaccine Initiative ("SAAVI") and two for the
EuroVac/CHIVAC consortium. The lead vaccine
candidate globally for the treatment of HIV/AIDS is a
DNA vaccine approach (DNA.HIVA) developed by
Professor Andrew McMichael at the University of
Oxford and Professor Bwayo at the University of
Nairobi in Kenya and manufactured by Cobra. This
product has been used in small Phase I studies in the
UK and Kenya. In addition a blinded Phase I/II trial,
being conducted at St Mary’s Hospital, London and at
the Kenya Vaccine Initiative in Kenya, is now close to
completion. The results from this study will be available
in the second quarter of 2004. The vaccine has also
been administered in a Phase I trial in Uganda
DNA manufacturing revenue 
(£000’s) 2003 2003%
DNA HIV/AIDS vaccines 2,033 64%
DNA other vaccines 209 6%
Total DNA vaccines 2,242 70%
DNA other 947 30%
Total 3,189
Cobra manufacturing 
revenue by 
product (£000’s) 2003 2003% 2002 Increase
DNA 3,189 53% 1,236 158%
Virus 1,063 18% 554 92%
Protein 1,576 26% 565 179%
Cell Line 192 3% 185 4%
Total 6,020 2,540 Chief Executive’s Review
Cobra Biomanufacturing Plc 5
HIV/AIDS Vaccines (continued)
from which data will be available by mid 2004. A
second vaccine sponsored from Professor Andrew
McMichael’s laboratory is called DNA.RENTA. This
vaccine, again manufactured by Cobra in 2003 will
begin Phase I trails by the end of the second quarter of
2004. A third vaccine sponsored by IAVI called
DREP .HIVA and originating from Professor Peter
Liljstrom’s laboratory at the Karolinska Institute,
Stockholm has been prepared and shipped for pre-
clinical evaluation in the first quarter of 2004. Clinical
trials are anticipated to start in the final quarter of
2004.
In November 2002 we announced a long-term
manufacturing deal with SAAVI providing the Group
with the option to manufacture the DNA HIV/AIDS
vaccine for the South African market and also giving
the Group the commercialisation rights on the vaccine
for the rest of the world. Initial clinical batches were
manufactured by Cobra in 2003 and will enter clinical
trials in 2004 in the US, funded by the National Institute
of Health HIVTN Network.
Multiple Sclerosis
This year we were pleased to initiate work on two DNA
vaccines against mulitple sclerosis developed by Bayhill
Therapeutics Inc. a spin out of Stanford University in
the US. We are pleased to be working with such an
innovative company, which has invented a pioneering
approach to prevent the devastating affects of
autoimmune disease.
Virus Manufacture 
Revenue from Virus manufacture increased by 92% in
2003, driven largely by a prostate gene therapy project
with the Australian pharmaceutical company, Mayne
Pharma. We are pleased to report that our other
partner in prostate cancer gene therapy, ML
Laboratories Plc, entered a Phase II clinical trial, and we
have also initiated a contract for the manufacture of a
Lentivirus with Europe’s leading gene therapy
company; Oxford Biomedica Plc.
Protein Manufacture
Revenue from Protein manufacture rose by 179% in
2003, largely due to the process development and GMP
production of a generic interferon for clinical
evaluation. We were also pleased to begin work with
Dr Shirley Longacre of the Institute Pasteur on an
exciting protein sub-unit vaccine for Malaria. Sponsored
by the Institute, the French Ministry of Research, the
European Union and the World Health Organisation
this vaccine is manufactured in baculovirus and is the
only vaccine, which shows sterilising immunity in a Sri
Lankan macaque model. In November 2002 we
announced that one of our customers, Evolutec Limited
had obtained permission to carry out a Phase I clinical
trial for a Protein biopharmaceutical to treat
conjunctivitis. This project was the first clinical
programme involving a Protein manufactured by Cobra
under scrutiny from the US Food and Drugs Agency.
Protein biopharmaceuticals constitute over 90% of the
global research and development spend on
biopharmaceuticals. We expect Protein manufacture
will be a growth area for Cobra as the Group gains a
track record for delivery in this sector. Chief Executive’s Review
Cobra Biomanufacturing Plc 6
Cell Therapies
The use of live cells or organisms as pharmaceutical
agents or vaccines is by no means new. However the
use of molecular biology to manipulate and enhance
the safety and efficacy of such organisms is a new and
fertile area of clinical research. In July 2003 it was a
pleasure to announce a long-term partnership with
the US company Advaxis Inc for the manufacture of a
vaccine against cervical cancer. Based on the
pioneering work of Yvonne Patterson of the University
of Pennsylvania, this vaccine is delivered by a live
genetically engineered but harmless strain of Listeria.
Cobra is also working on a long-term project with the
UK government’s Defence Science and Technology
Laboratories on an oral vaccine approach that could be
used to immunise against bio-terrorist instigated and
other diseases.
Outlook
Cobra Biomanufacturing Plc has a unique offering in
the biopharmaceutical sector. Based on the advanced
application of genetic engineering and bioprocessing
approaches we are able to significantly enhance the
value of our clients’ products and in exchange develop
long-term value flowing back to the Group. We have
demonstrated over the past year that the value of our
process know-how can be captured through
commercial manufacturing agreements, through
royalty deals on process intellectual property rights
and through the acquisition of rights to commercialise
the products themselves in designated territories.
Dr David Thatcher
Chief Executive
2 December 2003
Celline 3% DNA - HIV 
vaccines 34%
DNA - other
vaccines 3%
DNA - other 16% Protein 26%
Virus 18%
Revenue 2003 by product type
US 24% Europe 12%
Australia 9% UK 35% Africa 13% Asia 7%
Revenue 2003 by destination Financial Review
Cobra Biomanufacturing Plc 7
Cobra is a knowledge-led business, built and sustained
through the innovation of its employees. However we
also recognise that financial discipline is critical if the
Group is to achieve the profitable growth required to
create long-term value for our shareholders.  
Profit after tax ("PAT") for the financial year 2003 was
£1.0 million (2002 £0.1 million) and its achievement is
a reflection of how each business unit of the Group
responded to the targets set at the beginning of the
financial year, both in terms of securing and delivering
revenue, and also ensuring that their expenditure
remained within budget. 
Revenue
Revenue in 2003 from contract manufacture was up by
137% to £6.0 million (2002 £2.5 million). This growth
was achieved by an increase in productive staff, a
greater utilisation of our existing assets and the
successful launch of the new £2 million, 270 litre
fermentation suite at our Keele Facility at the
beginning of the current financial year. This new suite
contributed 30% (£1.8 million) of our total revenue for
the year. 
The Group maintained its diversity of product offering,
with Protein and Virus contracts contributing 44% of
the total revenue in 2003 (2002 44%). DNA remains
our lead product generating 53% of the total revenue
in 2003 (2002 49%). Of the DNA segment 64% was
from the manufacture of DNA HIV/AIDS vaccines, using
our novel ORT® vector. With Cobra currently supplying
4 out of the 11 clinical trials currently being conducted
worldwide, we feel we are justified in claiming that
we are the world’s leading outsourced supplier of DNA
HIV/AIDS vaccines.
Cobra delivers product globally. Revenue from the US
in 2003 increased by 158% to £1.4million (2002 £0.6
million), this represents 24% (2002 22%) of our total
revenue. The growth in US revenue is primarily due to
the successful launch of our sales office in Chicago in
November 2002 and is extremely encouraging
considering that 75% of the biopharmaceutical market
is in the US.
Profitability and margins
Gross profit margin for the year increased to 57%
(2002 34%). This was primarily due to the greater
utilisation of our existing Keele Facility. 
The Group generated an operating profit of £0.7
million (2002 £0.8 million loss*), providing an
operating margin for 2003 of 12% (2002 -32%*),
however if the Oxford Facility reconstruction costs
incurred in the final quater of 2003 are excluded, the
existing business generated a very encouraging
operating margin of 15%.
The earnings before interest, taxation, depreciation and
amortisation ("EBITDA") for the Group for 2003 were
£1.0million (2002 £0.6million loss*) and the profit
before tax ("PBT") was £0.8 million (2002 £0.9 million
loss). 
Earnings per share ("EPS") for 2003 stands at 6.9
pence (2002 1.0 pence), the adjusted EPS 6.9 pence
(2002 minus 9.6 pence) is included to highlight the
underlying growth in earnings exclusively from
continuing manufacturing operations.
Contract manufacturing provided a 21% return on
assets exclusively employed on that class of business
(2002 -32%), as the Keele Facility approaches full
capacity. 
Research and Development
Cobra recognises that it has achieved its competitive
advantage in the complex market of
biopharmaceutical manufacturing, through
investment in research and development, to maintain
its position, Cobra invested £0.2 million in 2003 (2002
£0.2million*) on improving its manufacturing process
and maintaining it’s intellectual property portfolio.  
£000’s 2003 2002
Manufacturing revenue 6,020 2,540
Gross profit margin 57% 34%
Group operating profit 732 *(807)
Group operating margin 12% *-32%
EBITDA 1,032 *(565)
PBT 817 (937)
PAT 1,042 89
EPS 6.9p 1.0p
Adjusted EPS 6.9p (9.6)p
* 2002 comparatives exclude discontinued operations
* 2002 comparatives exclude discontinued operations Financial Review
Cobra Biomanufacturing Plc 8
Cash Flow (including Short-Term Deposits)
The cash balance (including short-term deposits)
increased during 2003 by £4.7 million to £7.3 million
(2002 £2.6 million).  The source and application of those
funds during the year are described in the table below. 
Acquisitions and Funding
On 23 June 2003, the Group completed the acquisition
of additional capacity, in Oxford, UK ("the Oxford
Facility"). This acquisition represents a significant step
in Cobra’s development, in that it will not only double
our existing Phase I/II capability, but it will allow us to
expand our customer base, thereby increasing the
likelihood of one of Cobra’s customers entering into a
long-term supply agreement for the manufacture of
the more lucrative phase III/in market product supply.  
The acquisition was for the freehold land and buildings
and the existing plant and laboratory equipment for a
total net cost of £1.4 million. The purchase of the
freehold land and buildings at the Oxford Facility was
partially funded by way of an 11-year £1.1 million
property mortgage loan with HSBC Bank Plc.
To fund the post acquisition investment required to
transform the Oxford Facility into a validated multi-
product facility, by the second quarter of 2004, the
Company issued a further 6.5 million 10p ordinary
shares at 80p each, raising £5.2 million (£4.7 million net
of issue costs).    
T axation
At 30 September 2003, the Group had tax losses carried
forward of £12.5 million, ensuring that even though the
Group is now profitable, it will not be obliged to pay
UK corporation tax for the foreseeable future. Under
Financial Reporting Standard ("FRS") No. 19 the Group
is entitled to partially recognise this through a deferred
tax asset in the Balance Sheet, included in debtors. As a
result the profit and loss account in 2003 has been
credited with deferred taxation of £0.2 million (2002
nil), as recognition of its recovery out of future profits.
The taxation figure for the financial year 2002 (£1.0
million) relates to research and development tax relief,
available to the Group under Schedule 20 of the Finance
Act 2000, in respect of the financial years 2000, 2001
and 2002. The cash receipts from the Inland Revenue
are repaid in full to the Group’s former parent
undertaking, under an agreement entered into on 6
June 2002.
£000’s 2003 2002
Operating cash inflow** 445 (3,045)
Capital investment
Keele facility (480) (2,040)
Oxford freehold (1,387) -
Oxford facility (490) -
(2,357) (2,040)
Inflows
Share issue 4,684 6,298
Disposal of R&D - 3,175
Mortgage 1,088 -
R&D tax credit 497 240
Leasing & interest 290 314
6,559 10,027
Opening cash 2,615 (2,327)
Closing cash 7,262 2,615
** includes R&D tax credit repayments to the Group's former parent
undertaking of £496,522 (see taxation section)
(2.0) (1.0) 0.0 1.0 2.0 3.0 4.0 5.0
Oxford 
freehold
Oxford 
facility
Keele 
facility
Leasing &
Interest
Operating
cash
R&D tax
credit
Mortgage
Share Issue
Cash flow 2003 £m Treasury Policies and Financial Risk
Surplus funds are intended to support the Group’s short-
term working capital requirements. These funds are
invested through the use of short-term deposits and the
policy is to maximise returns as well as provide the
flexibility required to fund on-going operations. It is not
the Group’s policy to invest in financial derivatives.
Interest Rate, Liquidity and Foreign 
Currency Risk
Interest rate risk
During the year the Group took out a £1.1 million 11-
year mortgage facility with HSBC Bank Plc to fund the
acquisition of the freehold land and buildings at the
Oxford Facility. The interest rate payable is 1.65% over
the bank’s base rate. The risk is partially offset at
present by the Group’s continued use of short-term
deposits. 
Liquidity risk
Surplus funds are invested on a short-term basis at
money market rates and therefore such funds are
available at very short notice.
Currency risk
The Group generated overseas revenue during the year,
primarily from the US. Any currency exposure has been
partially offset by overseas expenditure and any net
exposure has not been deemed material. 
The position regarding both interest and currency risk is
regularly reviewed and hedging activities will be
initiated when appropriate.
Peter Coleman
Finance Director
2 December 2003
Financial Review
Cobra Biomanufacturing Plc 9 Board of Directors
Cobra Biomanufacturing Plc 10
(1) Peter Fothergill BA FCIM (Age 58), Chairman
Peter has 35 years experience in the international
healthcare industry, including Chairmanship of Fisons
Plc’s multinational research-based Pharmaceutical
Division and Consumer Health Division, where he led a
series of strategic development initiatives, including
acquisitions in North America, Europe and Asia, whilst
achieving significant organic growth. He was a main
board director during the period when Fisons Plc was a
FTSE 100 company. 
Peter subsequently formed his own strategic
management company that has been involved in a
number of management buy-out and buy-in
arrangements, consultancies and the creation of new
businesses in the private healthcare sector. He also
served on the boards of ML Laboratories Plc, where he
continues as an advisor on a part-time basis, and Proteus
International Plc (now Protherics Plc). He is currently
Chairman of I Holland Limited, the world’s leading
supplier of tablet moulding tools to the pharmaceutical
industry and Innovata Biomed Limited, the respiratory
development subsidiary of ML. He is a fellow of the
Chartered Institute of Marketing, a member of the
Institute of Directors and sits on various charitable and
public bodies.
(2) David Thatcher PhD (Age 56), Chief Executive
David trained as a protein chemist at the Universities of
Newcastle on Tyne, Edinburgh and Montpellier.  He
pursued an academic career until 1981, when he moved
to Biogen SA in Geneva where he worked on the isolation
of recombinant cytokines.  In 1985 he became Director of
Process Development at Biogen Inc, Cambridge Mass.,
where he was responsible for the development of large-
scale processes for the production of gamma interferon,
GM-CSF and several other products.  
In 1988 David left Biogen and joined Zeneca
Pharmaceuticals as head of their Protein Production
Laboratory where he was responsible for the production
of a number of biopharmaceutical products for clinical
evaluation.  In 1994 he joined Therexsys Limited (now
Cobra) as the second employee and has been responsible
for managing the evolution of the Group’s manufacturing
technology and assets and developing the contract
manufacturing business.
(3) Peter Coleman ACMA MBA (Age 37), Finance
Director
Peter has over nine years experience in the
pharmaceutical industry. From 1994 to June 2002 he was
employed by ML Laboratories Plc in a variety of senior
financial and corporate development roles at ML’s head
office.  Prior to his employment at ML, he was a director
of SPD Holdings, a family owned sub-contract aerospace
manufacturing company.  
Peter qualified as a chartered management accountant
in 1996 and in 2001 was awarded an MBA with
distinction jointly from the Manchester Business School
and the University of Wales.  
(4) David Bloxham PhD (Age 56), Independent Non-
executive Director
David trained as a biochemist and pursued an academic
career in Europe and America before entering the
pharmaceutical industry.  He has held a number of
senior Research and Development positions and was a
main board member of Celltech Plc and Laboratories
Almirall SA and is a former Chief Executive of Cobra.  He
is currently the Chairman of Evolutec Limited and is a
non-executive director of Provalis Plc and the Babraham
Institute.
(6) Professor Nigel Slater (Age 50), Independent Non-
executive Director
Nigel is Professor of Chemical Engineering at the
University of Cambridge with research interests in the
process development and formulation of
biopharmaceuticals.  His research portfolio has included
collaborations with a number of leading pharmaceutical
companies and he is the author of a number of scientific
papers and patents.  Prior to this he has served as a
director and governor of the Silsoe Research Institute. In
addition, he has relevant biomanufacturing
development and engineering experience with
Wellcome Plc and Unilever Nederland BV.
(5) Michael Gatenby FCA (Age 59), Independent Non-
executive Director
Michael graduated from Cambridge University with
Honours in Law. He is a chartered accountant and was a
director of Hill Samuel and Co and Vice Chairman of
Charterhouse Bank. He is currently a director of Johnson
Service Group Plc, Porvair Plc, SRS Technology Group Plc
and Protherics Plc and he is also a Trustee/Director of the
Stroke Association.
1
2 3 4 5 6 Senior Management
Cobra Biomanufacturing Plc 11
(9) Julian Hanak BSc (Hons) MSc (Age 39), Director of
Production 
After gaining an honours degree in Biochemistry at
University College London, Julian obtained an MSc at
the University College of North Wales and then trained
in cell culture and microbial fermentation at the
National Institute of Medical Research. He then moved
to the Bioproducts Laboratory (Elstree) where his duties
involved the pilot scale production of human
monoclonal antibodies for clinical trials. He was also
responsible for running a sterile fill operation and
supervising the commissioning of a new GMP
production suite.
In 1992 Julian moved to Zeneca Pharmaceuticals where
he was involved with the process development of several
immunotherapy products and the development of virus
expression systems for protein production. He joined
Cobra in 1994 and took over responsibility for
production in 1995.
(7) Geoff Sharpe BSc PhD (Age 57), Director of Quality
Assurance
After having gained a degree in Applied Chemistry at
Liverpool, Geoff trained as a research chemist working
for ICI Corporate Laboratory in Runcorn. He switched to
the ICI Corporate Biotechnology Centre and went on to
complete a PhD in Molecular Biology at Leicester
University.
In 1991 Geoff transferred to ICI Pharmaceuticals (now
Astra Zeneca Plc) where he was involved with the
cloning and expression of recombinant proteins and
managed the corporate DNA sequencing laboratory. In
1993 he moved to Zeneca Pharmaceuticals,
Pharmaceutical Department where he managed a team
involved in the development and manufacture of both
small molecule and biotechnology based therapeutics. In
1996 he joined Cobra as their Quality Assurance
Manager and has been trained as a Qualified Person
under Article 23 of Directive 75/319/EEC.
(8) Andrew Lewin BA (Hons)
(Age 38), Director of Business Development
Prior to Cobra, Andrew was the Business Development &
Sales Manager at Accentus Biologics Plc, a subsidiary of
AEA Technology Plc, where he led the sales marketing
and licensing activities. Andrew joined AEA as a senior
scientist in 1995 and held a series of managerial and
marketing posts before joining the team that founded
Accentus Biologics in 2000. During his time at Accentus,
Andrew was responsible for winning new business in the
biotechnology, pharmaceutical and healthcare sectors,
and has gained extensive experience of the successful
management and licensing of technology and intellectual
property.
Andrew has a BA (Hons) in Biochemistry from Oxford
University and has worked with both the Imperial Cancer
Research Fund Laboratories and the Marie Curie Research
Institute in research posts where he co-authored a
number of scientific papers in the area of molecular and
cell biology.
7 8 9 The directors of Cobra Biomanufacturing Plc present
their report to the shareholders, together with the
audited financial statements for the year ended 30
September 2003.
Principal Activities 
Cobra Biomanufacturing Plc is a holding company and
its only subsidiary is Cobra Biologics Limited (formerly
Cobra Therapeutics Limited). The principal activity of the
Group is the manufacture of DNA, Virus and Protein
based pharmaceuticals. 
Trading Review
A review of the Group’s business and activities is
contained in the reports of the Chairman and the Chief
Executive set out on page 2 and pages 3 to 6
respectively. 
Results and Dividend 
The Group profit for the period after providing for
taxation was £1.0 million (2002 £0.1 million profit) and
an equivalent amount has been transferred to reserves.
The directors do not propose the payment of an
ordinary dividend.
The accumulated deficit carried forward for the Group
amounted to £30.8 million (2002 £31.8 million).
A financial review of results is included on pages 7 to 9.
Directors
The directors who served throughout the year were as
follows:
Peter Fothergill Chairman
David Thatcher Chief Executive
Peter Coleman Finance Director
Nigel Slater Independent Non-Executive
David Bloxham Independent Non-Executive
Peter Fothergill retires by rotation, and, being eligible
offers himself for re-election at the forthcoming Annual
General Meeting. 
Michael Gatenby was appointed as a non-executive
director on 2 December 2003 and will retire in
accordance with the Company’s articles of association
and, being eligible, will offer himself for re-election at
the Annual General Meeting.
All directors are subject to re-election at intervals of no
more than 3 years.
Details of directors’ interests in the share capital of the
Company, as shown in the register maintained in
accordance with Section 325 of the Companies Act 1985,
together with details of share options granted and
awards made to directors are included in the Board’s
Remuneration Report on pages 17 to 21.
Policy in Respect of Supplier Payments 
The Company and its principal subsidiary undertaking
agree terms and conditions for transactions with
suppliers and pay suppliers within the agreed time,
provided that suppliers comply with those terms and
conditions. At 30 September 2003 the trade creditors for
the Company represented 51 days (2002 21 days) of the
amounts invoiced by suppliers.
Environmental Policy
The Group recognises the importance of good
environmental practice and, whilst its activities have a
relatively low environmental impact, the Group’s has
strict environmental policies on the discharge of waste
and endeavours to comply at all times, with national
government and local authority regulations.
Charitable and Political Contributions
During the year the Group made no political or
charitable contributions.
Employee Involvement
The Company recognises and seeks to encourage the
involvement of its employees, with the aim being the
recruitment, motivation and retention of quality
employees throughout the Group. The Company
operates a share option scheme, which now allows
individuals to apply for their options to be granted
within the Enterprise Management Incentive Scheme. 
Each employee receives a staff handbook, which
outlines the Group’s employment policies and
includes a commitment to equal opportunity. The
handbook is designed to attract and motivate
employees regardless of sex, race, religion or
disability.
The Group is committed to ensuring a safe and healthy
working environment for all employees, consistent with
the requirements of health and safety legislation and
wherever practicable gives full consideration to
applications for employment from disabled persons.  
Report of the Directors
Cobra Biomanufacturing Plc 12 Employee Share Schemes
Employee involvement in financial performance is
encouraged through participation in the Company’s
share option schemes.  At 30 September 2003, 55
employees, including directors, held options over
1,343,138 ordinary shares in the Company’s share option
scheme. Further information on share options is shown
in note 18 on page 37.
Major Interest in Shares
At 25 November 2003, the following institutions held
interests in excess of 3% of the ordinary share capital:
No other person has notified an interest in the ordinary
share capital of the Company.
Annual General Meeting
The Annual General Meeting of the Company will be
held on 26 February 2004 at 11.00am at the offices of
Collins Stewart Limited, 9th Floor, 88 Wood Street,
London, EC2V 7QR.  The notice of the Annual General
Meeting, together with notes on the resolutions, is on
pages 41 and 42.
In addition to the ordinary business there are two items
of special business for consideration at the forthcoming
Annual General Meeting. These are: 
1. An ordinary resolution to renew the directors’
authority for the purpose of Section 80 of the
Companies Act 1985 ("the Act") to exercise all
powers of the Company to allot, or agree to allot,
authorised but unissued (and unreserved) share
capital of the Company. The authority will relate to
6,947,710 ordinary shares of 10p each, representing
36% of the current issued ordinary share capital of
the Company, and will expire at the conclusion of
the next Annual General Meeting of the Company
or if sooner, 24 May 2005. The directors have no
present intention of exercising the authority which
will be conferred by this resolution, other than
through the grant of options pursuant to the
Company’s share option scheme.
2. A special resolution to renew until the end of the
next Annual General Meeting or, if sooner, 24 May
2005 the directors’ power to allot equity securities
(within the meaning of Section 94 of the Act) for
cash other than pro rata to existing shareholders.
This power will relate to allotments in respect of
rights issues (where difficulties arise in offering
shares to certain overseas shareholders and in
relation to fractional entitlements) and to
allotments (other than in respect of rights issues) of
equity securities having an aggregate nominal value
not exceeding £97,500 (being 5% of the issued
equity share capital of the Company). The directors
consider that it is in the best interests of the
shareholders that the Board should have this limited
power in order to retain flexibility.
In the opinion of the directors the passing of these
resolutions is in the best interests of the shareholders.
Statement of Directors’ Responsibilities in
Respect of the Accounts
Company law requires the directors to prepare accounts
for each financial year, which give a true and fair view
of the state of affairs of the Company and of the Group
and of the profit or loss of the Group for that period.
In preparing those accounts, the directors are required
to:
1. Select suitable accounting policies and then apply
them consistently;
2. Make judgements and estimates that are reasonable
and prudent;
3. State whether applicable accounting standards have
been followed, subject to any material departures
disclosed and explained in the accounts; and
The directors are responsible for keeping proper
accounting records, which disclose with reasonable
accuracy at any time the financial position of the Group
and to enable them to ensure that the accounts comply
with the Companies Act.  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.
Report of the Directors
Cobra Biomanufacturing Plc 13
Number of 
Percentage ordinary 
holding shares
Fidelity International Limited 7.14% 1,391,600
Collins Stewart (CI) Limited 6.58% 1,283,250
Britannic Investment Managers 
Limited 6.32% 1,233,039
Standard Life Investments 5.13% 1,000,000 
ML Laboratories Plc 5.13% 1,000,000
New Star Select 
Opportunities Fund 3.91% 762,029
Invesco English and International
Trust Plc 3.75% 730,953
First State Investments 3.57% 695,631 Report of the Directors 
Cobra Biomanufacturing Plc 14
Going Concern
The directors have reviewed the budget, cash flow and
other relevant information and have a reasonable
expectation that the Group has adequate resources to
continue in operational existence for the foreseeable
future. For this reason, the directors continue to adopt
the going concern basis for the preparation of the
accounts.
Auditors
Ernst & Young LLP were re-appointed auditors at the
Annual General Meeting held on 28 February 2003.
They have expressed their willingness to continue in
office and a resolution to reappoint them as auditors
and to authorise the directors to determine their
remuneration will be proposed at the next Annual
General Meeting.
Approved by the Board and signed on 
its behalf
Matthew Baker
Company Secretary
2 December 2003 Corporate Governance Statement
Cobra Biomanufacturing Plc 15
The Combined Code
The directors are committed to high standards of
corporate governance. The Board is accountable to its
shareholders for good corporate governance and is
adopting the necessary structures and procedures,
where possible and having regard to the size of the
Group, to comply with the current Combined Code.
The Board is also conscious of the new Combined Code
published in July 2003 and effective for fully listed
companies with a financial year starting on or after the
1 November 2003. The Board has reviewed the
corporate governance of the Company and has
implemented the appropriate changes, for instance it
has revised the terms of reference of the existing major
board committees and established a new Nomination
Committee in line with the new guidance. The Board
will continue to review the corporate governance of the
Company during the next financial year. 
This statement describes the approach of the Company
and the application of the principles identified in the
current code, which are being applied.
Application of the Principles of 
the Combined Code
The Board
The Board of Directors comprises three executive
directors, including the Chairman, and three
independent non-executive directors. The executive
directors have a clear division of duties and the full
Board meets at least six times throughout the year to
direct and control strategy and the operating
performance of the Group. This includes the approval
and monitoring of budgets, reviewing trade
performance and determining risk management
policies. The Group also has a schedule of matters
reserved for the decision of the Board. There is an
agreed procedure for directors in the furtherance of
their duties to take independent professional advice if
necessary, at the Company’s expense.  
David Bloxham previously held the position of Chief
Executive of Cobra Therapeutics Limited (now Cobra
Biologics Limited), the wholly owned subsidiary of the
Company. This appointment ceased in June 2000. In the
opinion of the Board this gives him an insight into the
Company, but does not affect his independence. The
Board therefore considers that all of the non-executive
directors are independent.  
At the current time, the Board feels that it is not
appropriate to appoint a senior independent non-
executive director.
Board Committees
The following committees deal with specific aspects of
the Group’s affairs:
Audit Committee
The Audit Committee comprises of the non-executive
directors with David Bloxham as Chairman. The
Committee meets at least twice a year and the meetings
are arranged to tie in with the publication of the
Company’s financial statements. The Committee will
also meet on an ad-hoc basis where necessary. The
external auditors attend the meetings and report as
appropriate.  
The Committee operates within specific terms of
reference, which include reviewing the Group’s
accounting policies, financial reporting, internal control
and risk management processes. It reviews the need to
appoint an internal audit function, and also considers
the appointment and fees of the external auditors
together with their independence and objectivity.
Remuneration Committee
The Remuneration Committee comprises of the non-
executive directors with Nigel Slater as Chairman.  It
recommends to the Board the policy on executive
remuneration and it determines on behalf of the Board,
the terms and conditions of service for each executive
director.  The Report on Directors’ Remuneration is set
out on pages 17 to 21.
Nomination Committee 
The Board has recently established a Nomination
Committee. It comprises the Chairman, Peter Fothergill
and the non-executive directors. Peter Fothergill is the
Chairman of the Committee. The Committee operates
within specific terms of reference, which includes a
regular review of the Board structure, size and
composition and identifying and nominating candidates
to fill board vacancies, as and when they arise.     
The Committee is responsible for identifying
appropriate candidates for the Company’s executive and
non-executive posts and for recommending such
candidates to the Board.  Corporate Governance Statement 
Cobra Biomanufacturing Plc 16
Risk Management and Internal Control
The Board is responsible for establishing and
maintaining the Group’s system of internal control,
which is designed to meet the particular needs of the
Group and the risks to which it is exposed. Such a
system is designed to manage these risks, to provide
reasonable but not absolute assurance against material
misstatement or loss and to maintain proper accounting
records to ensure the integrity of financial information
used within the business and for external publication.
The Group’s established internal control procedures
include the following:
1. A schedule of matters reserved for the Board. The
Board of Directors has overall responsibility for the
effective running of the Group and it has a formal
schedule of matters, which are specifically reserved
for decisions by the Board. 
2. The Board meets at least six times a year to manage
the affairs of the Group. The Group’s financial and
operating performance is closely monitored at each
Board meeting with formal Board reports from the
Chief Executive and the Finance Director covering
their areas of the business.
3. The Group’s senior management team, including
executive and non-executive directors meet twice a
year for a strategic review. The purpose of which is
to formulate a long-term strategy for the Group and
develop a strategic framework for the achievement
of the Group’s financial targets.   
4. The Group’s Executive Committee meets monthly to
review the performance of the Group. The Executive
Committee is comprised of the operational senior
management, who each provide a monthly report.
Each of the senior managers also operate within a
clearly defined Group structure, and each is given
the appropriate operational authority.
5. The Group prepares an annual budget, developed
through a comprehensive operational budgeting
process prior to the commencement of the financial
year. A revised forecast is also prepared at the half
year. The budget and the revised forecast are
reviewed and approved by the Board and the
Executive Committee.   
6. The Board and the Executive Committee then
monitor the actual monthly financial performance of
the Group against the budget and the half-year
revised forecast, with any significant variances
highlighted and explained. 
The Board has also recognised the need for an effective
risk management process, and after a comprehensive
review implemented the development of an integrated
risk management process for the Group. Stage one of
the process identified and prioritised the major strategic
risks facing the Group, and reviewed the current
controls in place for each risk and recommended a
strategy for improvement. Stage two will be to then
embed a risk review process into the established
internal control procedures of the Group during the
next financial year.    
The financial review also provides some further
information on the risks the Group faces.
Relations with Shareholders
The Board recognises the importance of continual
communications with shareholders and will maintain a
programme of regular dialogue with its’ investors,
including presentations following the Company’s
announcements of its preliminary full-year figures and
of the half-year results.
There is also an opportunity, at the Company’s Annual
General Meeting for individual shareholders to raise
general business matters with the full Board and notice
of the Company’s Annual General Meeting is circulated
to all shareholders at least 20 working days before such
meeting. The Chairmen of the Audit, Remuneration and
Nomination Committees will be available at the Annual
General Meeting to answer questions. 
The Annual Report is to be published on the Company’s
website, www.cobrabio com which also includes
previous financial reports, press releases and other
announcements during the year. Cobra Biomanufacturing Plc 17
Report on Directors’ Remuneration
This report describes the role and composition of the
Remuneration Committee ("the Committee"), the
Group’s remuneration policy and the arrangements
currently in place of both executive and non-executive
directors.
Reward Philosophy
To ensure corporate success and enhance shareholder
value, the Group needs people of the right calibre able
to meet the challenges it faces.
The Group’s overall policy aims are to:
1. Attract, develop, motivate and keep talented people
at director level;
2. Pay competitive salaries and benefits to directors.
When pay levels are set, account is taken of the
work an director does, what is paid in other
companies for that work and how well the Group’s
businesses are performing; and
3. Encourage its directors to hold shares in the
Company, which the Board believes is an effective
way of bringing together their interests with those
of external shareholders.
The Company promotes greater ownership of its shares
by offering directors the opportunity to participate in
the Company’s share options scheme. 
Non-Executive Directors’ Remuneration
Non-executive directors are appointed for an initial
period of twelve months and then on a rolling contract
subject to three months’ notice either by themselves or
the Company. All directors are subject to re-election at
an Annual General Meeting at least every three years.
The non-executive director’s receive a basic salary and
do not participate in the bonus arrangements,
healthcare arrangements, company share option
schemes or the pension scheme. The Company repays
the reasonable expenses they incur in carrying out their
duties as directors.
Non-executive directors’ remuneration for the year
ended 30 September 2003 is set out in the following
table:
* The non-executive remuneration for the year ended
30 September 2002 is from the date of their
appointment on 6 June 2002.
Michael Gatenby was appointed as a non-executive
director on 2 December 2003, after the end of the
financial year.
Executive Directors’ Remuneration
The Committee makes recommendations to the Board
on the Group’s framework of executive remuneration
and its cost. It decides the specific remuneration
benefits, employment conditions, pension rights,
compensation payments and severance terms for the
executive directors and the remuneration framework
for the other senior executives. 
The Committee investigates and takes into account the
remuneration paid to the directors of other companies
of a similar size and comparable industry sector in the
UK, to ensure that the levels of remuneration paid by
the Group are appropriate. During the financial year
2003 this information was provided through
subscription and access to the New Bridge Street
Consultants’  "Biotechnology Industry Remuneration
Survey 2002", a survey that had 47 sector participants.
The Committee also has access to independent advice
on corporate governance and during the next financial
year intends to commission an independent review, to
determine whether the compensation packages of the
directors are competitive with other similar sized
organisations.     
The Committee met twice in the year to 30 September
2003 and the Board accepted the Committee’s
recommendations without amendment. 
The current members of the Committee are David
Bloxham and Nigel Slater as Chairman. The members of
the Committee have no personal financial interest in the
Company other than as shareholders and the fees paid
to them as non-executive directors. They have no
conflicts of interest arising from cross directorships and
are not involved in the day-to-day running of the
Group’s businesses. 
Although not members of the Committee, the
Chairman and Chief Executive may be invited to attend
meetings and the Committee consults them on
proposals relating to the remuneration of executive
directors and appropriate senior executives. They do not
attend when the Committee discusses matters relating
to their own remuneration.
T otal Total
2003 *2002
£ £
Non- executive director
David Bloxham 18,000 5,400
Nigel Slater 18,000 5,375
T otal 36,000 10,775 Report on Directors’ Remuneration
Cobra Biomanufacturing Plc 18
Reward Policy
The Committee’s policy for executive directors’
remuneration is to:
1. Pay a basic salary, which competes with other
companies of similar size and complexity. The
Company aims to pay about the market median but
may pay more for an outstanding performer or to
attract executives of the right calibre.
2. Give executives the opportunity to increase their
earnings by meeting and outperforming short-term
and long-term objectives that are key to the growth
of the Group. In this way, the Company links
executives’ rewards directly to the Group’s
performance and shareholders’ interests;
3. Encourage executives to hold shares in the Company
(including through the use of share options); and 
4. Overall, reward executives fairly and responsibly for
their contribution to the Group’s short and long-
term performance. 
Elements of Remuneration
In deciding the executive directors’ total remuneration
package and individual elements of it, the Committee
assesses where the Company should be positioned
relative to other companies. It makes appropriate
comparisons but treats them cautiously.
The Committee aims for an appropriate balance
between fixed pay and benefits and variable long and
short-term rewards. Variable or ‘at risk’ pay in this
financial year represented 15% of executive directors
basic salaries.
The main elements of executive directors’ remuneration
are as follows:
Basic Salary
The Committee reviews basic salaries each year taking
account of the various factors, elements and policies set
out earlier. Any changes are made with effect from the
1 January. The basic salaries of the executive directors
are set out in the table overleaf.
Annual Bonus
The annual bonus further motivates the executive
directors and other senior executives to achieve the
Group’s key operational and strategic objectives. The
Committee reviews annually the basis of the bonus and
the targets to be achieved.
During the financial year 2003, executive directors could
earn discretionary annual bonus awards worth up to
40% of their basic salary for the attainment of specific
corporate targets.
For 2004 the Committee has introduced a performance
related bonus scheme for both directors and senior
management, which establishes a set of both
quantitative and qualitative objectives for each director
and senior manager at the start of the financial year.
The quantitative objectives are based on Group sales,
PBIT and cash management and the qualitative
objectives are based on personal and team
achievements. The Chief Executive will be entitled to
receive up to a maximum of 50% of his basic salary
under this scheme, and the other executive directors
up to a maximum of 30%. In addition the Committee
may award an additional discretionary bonus where
merited.
Other Benefits
Benefits for the executive directors principally
comprise provision for private healthcare, death and
disability in service cover. Cobra Biomanufacturing Plc 19
Elements of Remuneration
The basic salary, bonus and benefits awarded to the executive directors during the year were as follows:
Report on Directors’ Remuneration
Total Total
Basic salary Bonus Benefits 2003 * 2002
££ £ £ £
Executive directors
David Thatcher 138,875 40,000 3,068 181,943 38,431
Peter Fothergill 100,385 - 4,022 104,407 30,018
Peter Coleman 78,444 7,000 1,675 87,119 27,064
Total 317,704 47,000 8,765 373,469 95,513
* The remuneration for the year ended 30 September 2002 is from the date of their appointment on 20 May 2002.
Executive Share Options
The executive directors have been awarded share options over the Company’s shares as follows: 
At At
1 October Granted 30 September Exercise Date from
2002 in year 2003 price which Expiry
No No No pence exercisable date
Executive directors
David Thatcher 230,000 - 230,000 100.0 14.06.05 12.06.12
- 269,430 269,430 96.5 08.07.06 06.07.13
230,000 269,430 499,430
Peter Fothergill 200,000 - 200,000 100.0 14.06.05 12.06.12
- 207,254 207,254 96.5 08.07.06 06.07.13
200,000 207,254 407,254
Peter Coleman 60,000 - 60,000 100.0 14.06.05 12.06.12
- 74,352 74,352 96.5 08.07.06 06.07.13
60,000 74,352 134,352
The market price of the Company’s shares at 30 September 2003 was 105.0 pence (30 September 2002 84.5 pence)
and the range during the year was 73.0 pence to 120.0 pence. Report on Directors’ Remuneration
Cobra Biomanufacturing Plc 20
Pension Arrangements
The Chief Executive, David Thatcher and the Finance
Director, Peter Coleman, are members of the Group’s
defined contribution personal pension scheme, which is
open to all employees. The Group makes a contribution
of 7% of salary and employees are required to make a
minimum contribution of 3% of their basic salary. The
scheme also provides a lump sum death in service
benefit. 
The Chairman, Peter Fothergill, receives from the Group
a contribution of 15% of his basic salary to his defined
contribution personal pension plan.
The Group’s contributions to the directors’ personal
pension schemes during the year were as follows: 
* The contributions for the year ended 30 September
2002 are from the date of their appointment on 20 May
2002.
Service Contracts
The Executive Directors have a notice period of one
year. The Company may offer a longer notice period if it
considers that it is necessary in order to recruit a new
director. If it offers a notice period of more than one
year, it will usually reduce that to one year or less after
the initial period. There are no special provisions for
compensation in the event of loss of office. The
Remuneration Committee considers the circumstances
of individual cases of early termination and determines
compensation payments accordingly.
Performance Graph
The graph below shows the Company’s TSR ("Total
Shareholder Return") compared to the FTSE Small Cap
and the FTSE Small Cap Pharmaceutical & Biotechnology
Sector for the period from 13 June 2002 to 31 October
2003. TSR is defined as share price growth plus
reinvested dividends. Given its size and market sector,
the Company believes that they are the most
appropriate basis for comparison as a relevant equity
index of which it is a member.
130
120
110
100
90
80
70
60
50
40
30
JJ A S O N D J F M A M J J A S O
Cobra Biomanufacturing  Plc
FTSE Small Cap 
FTSE S/C Pharma and Biotech 
2003 *2002
£ £
Executive directors
David Thatcher 8,837 2,415
Peter Fothergill 15,058 4,442
Peter Coleman 4,992 1,260
28,887 8,117
Source: Datastream Cobra Biomanufacturing Plc 21
Directors’ Interests
At 30 September 2003, the directors had the following beneficial interests in the Company’s shares and options to
subscribe for shares:
Ordinary shares
of 10p each Share options
2003 2002 2003 2002
No No No No
Executive directors
David Thatcher 15,000 10,000 499,430 230,000
Peter Fothergill 15,000 10,000 407,254 200,000
Peter Coleman 3,750 2,500 134,352 60,000
Non-executive directors
David Bloxham 7,500 5,000 - -
Nigel Slater 2,500 - - -
From the end of the financial year until 2 December 2003 there have been no changes in the above interests.
Nigel Slater
Chairman - Remuneration Committee
2 December 2003
Report on Directors’ Remuneration We have audited the Group's financial statements for the year ended 30 September 2003, which comprise Group
Profit and Loss Account, Group Statement of Total Recognised Gains and Losses, Group Balance Sheet, Company
Balance Sheet, Group Statement of Cash Flows and the related notes 1 to 23.  These financial statements have been
prepared on the basis of the accounting policies set out therein.
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 auditors' 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 auditors
The directors are responsible for preparing the Annual Report, including the financial statements, which are required
to be prepared in accordance with United Kingdom law and accounting standards as set out in the Statement of
Directors' Responsibilities in relation to the financial statements.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements
and United Kingdom Auditing Standards.
We report to you our opinion as to whether the financial statements give a true and fair view and are properly
prepared in accordance with the Companies Act 1985.  We also report to you if, in our opinion, if the Report of the
Directors is not consistent with the financial statements, if 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 transactions with the Group is not disclosed.
We read other information contained in the Annual Report and consider whether it is consistent with the audited
financial statements.  This other information comprises the Financial Highlights, Chairman's Statement, Chief
Executive’s Review, Financial Review, Report of the Directors, Corporate Governance Statement and Report on
Directors’ Remuneration. We consider the implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the financial statements.  Our responsibilities do not extend to any
other information.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices
Board.  An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the
financial statements.  It also includes an assessment of the significant estimates and judgments made by the directors
in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Group'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 financial statements 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 financial statements.
Opinion
In our opinion the financial statements give a true and fair view of the state of affairs of the Company and of the
Group as at 30 September 2003 and of the profit of the Group for the year then ended and have been properly
prepared in accordance with the Companies Act 1985.
Ernst & Young LLP
Registered Auditor
Manchester
2 December 2003
Independent Auditors’ Report to the members of Cobra
Biomanufacturing Plc 
Cobra Biomanufacturing Plc 22 Cobra Biomanufacturing Plc 23
Group Profit and Loss Account 
for the Year Ended 30 September 2003 
Notes 2003 2002
£ £
Turnover
Continuing operations 6,020,293 2,539,812
Discontinued operations - 30,000
Group turnover 2 6,020,293 2,569,812
Cost of sales (2,617,732) (1,700,067)
Gross profit 3,402,561 869,745
Research and development 3 (199,976) (1,916,254)
Selling, marketing and distribution costs 3 (384,299) (65,015)
Administrative expenses 3 (2,086,410) (2,215,260)
Operating profit/(loss)
Continuing operations 731,876 (806,524)
Discontinued operations - (2,520,260)
Group operating profit /(loss) 3 731,876 (3,326,784)
Profit on transfer of discontinued operations - 2,517,810
Discontinued reorganisation costs - (123,501)
Profit/(loss) on ordinary activities before
investment income, interest and taxation 731,876 (932,475)
Bank interest receivable 5 131,528 27,264
Interest payable 5 (46,523) (32,184)
Profit/(loss) before tax 816,881 (937,395)
Taxation 6 225,000 1,025,992
Retained profit for the year 1,041,881 88,597
Earnings/(loss) per share
Basic 8 6.9p 1.0p
Adjusted 8 6.9p (9.6)p
Diluted 8 6.9p 1.0p
Group Statement of Total Recognised Gains and Losses
There are no recognised gains or losses other than the profit for the year of  £1,041,881 in the year ended 30
September 2003 and the profit of £88,597 in the year ended 30 September 2002. Group Company
Notes 2003 2002 2003 2002
£ £ £ £
Fixed assets
Tangible assets 9 4,925,058 2,168,393 - -
Investments 10 - - 600,000 600,000
4,925,058 2,168,393 600,000 600,000
Current assets
Stocks and work in progress 11 206,919 441,178 - -
Debtors 12 2,480,378 2,373,389 4,562,045 4,001,208
Cash 7,261,751 2,614,546 6,708,288 2,509,737
9,949,048 5,429,113 11,270,333 6,510,945
Creditors: amounts falling due within one year 13 (3,151,602) (2,612,744) (295,195) (217,430)
Net current assets 6,797,446 2,816,369 10,975,138 6,293,515
Total assets less current liabilities 11,722,504 4,984,762 11,575,138 6,893,515
Creditors: amounts falling due after more 
than one year 14 (1,173,497) (162,292) - -
Net assets 2 10,549,007 4,822,470 11,575,138 6,893,515
Capital and reserves
Called up share capital 18 and 19 1,950,000 1,300,000 1,950,000 1,300,000
Share premium 19 9,632,493 5,597,837 9,632,493 5,597,837
Merger reserve 19 29,728,872 29,728,872 - -
Profit and loss account 19 (30,762,358) (31,804,239) (7,355) (4,322)
Equity shareholders’ funds 10,549,007 4,822,470 11,575,138 6,893,515
The financial statements on pages 23 to 40 were approved by the Board of Directors on 2 December 2003 and were
signed on its behalf by:
David Thatcher Peter Coleman
Chief Executive Finance Director
Cobra Biomanufacturing Plc 24
Balance Sheets
at 30 September 2003  Cobra Biomanufacturing Plc 25
2003 2002
Notes £ £
Net cash inflow/(outflow) from operating activities 20 444,816 (3,031,757)
Returns on investment and servicing of finance
Interest received 131,528 27,264
Interest element of finance lease rental payments (46,523) (32,184)
85,005 (4,920)
Taxation
R&D tax credit 496,522 239,608
496,522 239,608
Capital expenditure
Payments to acquire tangible fixed assets (2,356,888) (2,040,253)
(2,356,888) (2,040,253)
Acquisitions and disposals
Transfer of discontinued operations - 3,298,391
Reorganisation costs - (123,501)
- 3,174,890
Net cash outflow before the management of
liquid resources and financing (1,330,545) (1,662,432)
Management of liquid resources
Increase in short-term deposits (4,427,964) (2,350,000)
Financing
Issue of ordinary shares 5,200,000 7,000,000
Share issue costs (515,344) (702,163)
New long-term loans 1,087,500 -
Repayment of capital element of finance leases (71,228) (81,469)
Lease finance acquired 276,822 400,598
Decrease in amount owed to former parent undertaking - (13,804)
5,977,750 6,603,162
Increase in cash 219,241 2,590,730
Group Statement of Cash Flows 
for the Year Ended 30 September 2003  Cobra Biomanufacturing Plc 26
Reconciliation of Net Cash Flow to Movement in Net Funds
for the Year Ended 30 September 2003 
Notes 2003 2002
£ £
Increase in cash 219,241 2,590,730
Cash inflow from increase in loans (1,087,500) -
Repayment of capital element of finance leases 71,228 81,469
Lease finance acquired (276,822) (400,598)
Decrease in amount owed to former parent undertaking - 13,804
Cash outflow to short-term deposits 4,427,964 2,350,000
Change in net funds resulting from cash flow 3,354,111 4,635,405
Other - 164,001
Movement in net funds during the period 3,354,111 4,799,406
Net funds/(debt) at the start of the year 2,320,823 (2,478,583)
Net funds at the end of the year 20 5,674,934 2,320,823 Cobra Biomanufacturing Plc 27
Notes to the Financial Statements 
for the Year Ended 30 September 2003
1 ACCOUNTING POLICIES
Basis of preparation
The accounts are prepared under the historical cost convention and in accordance with applicable accounting
standards in the United Kingdom.
Basis of consolidation and presentation of financial statements
The Group accounts comprise the accounts of Cobra Biomanufacturing Plc and its subsidiary undertaking Cobra
Biologics Limited (formerly Cobra Therapeutics Limited) up to 30 September 2003. No profit and loss account is
presented for Cobra Biomanufacturing Plc as permitted by Section 230 of the Companies Act 1985.
Turnover and revenue recognition
Turnover, which excludes value added tax, represents amounts receivable in respect of the sale of goods and services
during the year. 
Turnover on fixed contracts is invoiced in accordance with the terms of the agreement with the customer and is
recognised based upon the stage of completion when the outcome of the contract can be foreseen with reasonable
certainty and after allowing for costs of completion. 
Licence income is credited to the profit and loss account when received.
Depreciation
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less residual value of each
asset evenly over its expected useful life as follows:
Freehold land and buildings 25 years
Plant and laboratory equipment between 6.67 and 10 years 
Short leasehold building improvements 6.67 years
Office equipment 4 years  
The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances
indicate the carrying value may not be recoverable.
Stocks
Stocks are valued in the balance sheet at the lower of cost incurred in bringing each product to its present location and
condition, and net realisable value. Cost is calculated on a first in first out basis. 
Raw materials purchase cost on a first in first out basis
Work in progress cost of direct materials and labour plus attributable overheads 
based on a normal level of activity
Net realisable value is based on estimated selling price less any further costs expected to be incurred on completion
and disposal.
Research and development
Research and development expenditure is written off in the period in which it is incurred, and inter alia all internal and
external costs incurred in patenting, external studies and consultancy. Notes to the Financial Statements 
for the Year Ended 30 September 2003
1 ACCOUNTING POLICIES (continued)
Leasing and hire purchase commitments
Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and
rewards of ownership of the asset have passed to the Group, are capitalised in the balance sheet and are depreciated
over their useful lives.
The interest element of the rental obligations is charged to the profit and loss account over the period of the lease and
represents a constant proportion of the balance of capital repayments outstanding.
Rentals paid under operating leases are charged to income on a straight-line basis over the lease term.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance
sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a
right to pay less, or to receive more, tax.  Deferred tax assets are recognised only to the extent that the directors
consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the
underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which
timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the
balance sheet date.
All differences are taken to the profit and loss account.
Pension costs 
The Group operates a defined contribution scheme, covering all employees. Contributions are charged to the profit
and loss account on an accruals basis.
2 TURNOVER AND SEGMENTAL ANALYSIS 
(a) Group turnover by geographic segments
All turnover originates from within the UK. The geographical analysis of turnover by destination is shown as follows:
2003 2002
£ £
Continuing operations
United Kingdom 2,114,096 842,714
North America 1,425,841 553,280
Europe 711,303 971,737
Rest of the World 1,769,053 172,081
6,020,293 2,539,812
Discontinued operations
United Kingdom - 10,000
North America - 20,000
- 30,000
6,020,293 2,569,812
Cobra Biomanufacturing Plc 28 Cobra Biomanufacturing Plc 29
Notes to the Financial Statements 
for the Year Ended 30 September 2003
2 TURNOVER AND SEGMENTAL ANALYSIS (continued)
(b) Segmental analysis by class of business
The Group currently operates in one area of activity, that of contract manufacture.
The analysis by class of business of the Group’s turnover, profit/(loss) on ordinary activities before tax and net assets is
as follows:
Contract manufacture Licensing Total
2003 2002 2003 2002 2003 2002
£ £ £ £ £ £
Group turnover
Continuing operations 6,020,293 2,539,812 - - 6,020,293 2,539,812
Discontinued operations - - - 30,000 - 30,000
6,020,293 2,539,812 30,000 6,020,293 2,569,812
Cost of sales (2,617,732) (1,700,067) - - (2,617,732) (1,700,067)
Research and development (199,976) (219,852) - (1,696,402) (199,976) (1,916,254)
Selling, marketing and distribution costs (384,299) (34,843) - (30,172) (384,299) (65,015)
Administration expenses (2,086,410) (1,391,574) - (823,686) (2,086,410) (2,215,260)
Segmental operating profit/(loss) 731,876 (806,524) - (2,520,260) 731,876 (3,326,784)
Profit on transfer of discontinued operations - 2,517,810
Discontinued reorganisation costs - (123,501)
Bank interest receivable 131,528 27,264
Interest payable (46,523) (32,184)
Profit/(loss) before taxation 816,881 (937,395)
Segmental net assets 3,561,573 2,501,647 - - 3,561,573 2,501,647
The net segmental assets are reconciled to shareholders’ funds as follows:
Segmental net assets 3,561,573 2,501,647
Cash at bank and in hand 7,261,751 2,614,546
Corporation tax 323,278 786,385
Deferred taxation 225,000 -
Amounts owed to former parent undertaking (323,278) (786,385)
Obligations under finance leases (499,317) (293,723)
Net assets 10,549,007 4,822,470 Cobra Biomanufacturing Plc 30
Notes to the Financial Statements 
for the Year Ended 30 September 2003
3 OPERATING PROFIT/(LOSS)
2003 2002
This is stated after charging: £ £
Auditor’s remuneration - audit services 18,000 17,000
- non audit services 15,500 5,000
Loss on sale of tangible fixed assets - 1,702
Depreciation of owned assets 250,098 371,333
Depreciation of assets held under finance leases 49,739 61,660
Operating leases - hire of other assets 3,915 3,632
- rental of premises 153,211 192,431
£9,000 (2002 £8,500) of audit fees and £7,750 (2002 £2,500) of non audit fees relates to the Company.
The allocation of operating costs between continuing and discontinued operations is as follows:
Continuing Discontinued 2003 Continuing Discontinued 2002
2003 2003 Total 2002 2002 Total
£££ £££
Cost of sales 2,617,732 - 2,617,732 1,700,067 - 1,700,067
Research and development 199,976 - 199,976 219,852 1,696,402 1,916,254
Selling, marketing and 
distribution costs 384,299 - 384,299 34,843 30,172 65,015
Administrative expenditure 2,086,410 - 2,086,410 1,391,574 823,686 2,215,260
4 STAFF COSTS
2003 2002
£ £
Wages and salaries 1,985,531 2,123,886
Social security costs 187,448 200,672
Other pension costs 91,401 96,733
2,264,380 2,421,291
The average monthly number of employees during the year was made up as follows:
2003 2002
No. No.
Manufacturing 41 37
Selling marketing and distribution 4 1
Research and development 3 23
Administration 18 13
66 74 Cobra Biomanufacturing Plc 31
Notes to the Financial Statements 
for the Year Ended 30 September 2003
4 STAFF COSTS (continued)
Directors’ remuneration
2003 2002
£ £
Aggregate emoluments 409,469 106,288
Company contributions to defined contributions pension scheme 28,887 8,117
438,356 114,405
Remuneration to highest paid director
2003 2002
£ £
Aggregate emoluments 181,943 38,431
Company contributions to defined contributions pension scheme 8,837 2,415
190,780 40,846
5 INTEREST RECEIVABLE AND PAYABLE
2003 2002
£ £
Interest receivable
Bank interest receivable 131,528 27,264
Interest payable
Interest payable on finance leases 46,523 32,184
6 TAXATION
The Group is entitled to Research and Development tax relief under Schedule 20 of the Finance Act 2000, in respect of
the year ended 30 September 2002 and 30 September 2003.
The deferred tax asset has been recognised to the extent that deferred taxation is expected to be recoverable out of
future profits. This is based on profit forecasts for the 12 months ended 30 September 2004. The unrecognised
deferred tax asset will be available for offset against qualifying taxable profits arising in future periods. The effect of
the utilisation of the unrecognised deferred tax assets in future periods will be to reduce the future tax rate to below
the standard rate for UK Corporation Tax. Cobra Biomanufacturing Plc 32
Notes to the Financial Statements 
for the Year Ended 30 September 2003
6 TAXATION (continued)
2003 2002
£ £
Taxation on profit/(loss) on ordinary activities
Current tax:
UK corporation tax on loss of the period - (289,862)
Adjustments in respect of previous periods - (736,130)
Total current tax - (1,025,992)
Deferred tax:
Origination of timing differences (225,000) -
Total deferred tax (225,000) -
Total tax (225,000) (1,025,992)
Factors affecting the tax charge for the period
The tax assessed for the period is lower than the standard rate of corporation tax in the UK.  The differences are
explained below:
2003 2002
£ £
Profit/(loss) on ordinary activities before tax 816,881 (937,395)
Profit/(loss) on ordinary activities multiplied by the 
standard rate of Corporation Tax in the UK of 30% (2002 30%) 245,064 (281,219)  
Effect of:
Expenses not deductible for tax purposes 321 (866,317)
Depreciation in excess of capital allowances 89,951 (93,259)
Other timing differences 41,521 -
Adjustments in respect of previous periods - (736,130)
Utilisation of tax losses (376,251) 697,303
Difference in tax rates on losses used for R&D tax claim - 253,630
Others (606) -
Current tax charge for the period - (1,025,992)
Factors affecting future tax charges
The trading losses carried forward available for set off against future profits arising from the same trade amount to
approximately £12,500,000 
The Group has deferred tax assets of £3,956,023 at 30 September 2002 and £3,700,000 at 30 September 2003, which
have arisen mainly due to trading losses carried forward.   Cobra Biomanufacturing Plc 33
Notes to the Financial Statements 
for the Year Ended 30 September 2003
7 PROFIT/(LOSS) ATTRIBUTABLE TO MEMBERS OF THE PARENT COMPANY
The loss dealt with in the accounts of the parent company for the period ended 30 September 2003 was £3,033 (2002
£4,322 loss).  
8 EARNINGS PER ORDINARY SHARE
The calculation of basic earnings per ordinary share is based on earnings of £1,041,881 (2002 £88,597) and on
15,124,531 ordinary shares (2002 8,438,953) being the weighted average number of shares in issue during the year.
The basic and adjusted earnings per share for the year ended 30 September 2002 has been restated to reflect the
dilutive effect of the placing and open offer of 6,500,000 ordinary 10.0 pence shares at 80.0 pence per share on 23
June 2003.  
2003 2002
No. No.
Basic weighted average number of shares 15,124,531 8,438,953
Dilutive potential ordinary shares:
Employee share options - -
Warrants - -
15,124,531 8,438,953
The adjusted earnings per share is shown to highlight the underlying earnings trend and is calculated using the same
number of ordinary shares as the basic earnings calculation referred to above and the amounts shown below:
2003 2002
£ £ 
Profit for the financial year 1,041,881 88,597
Adjustments
Profit on transfer of R&D operations - (2,517,810)
Discontinued reorganisation costs - 123,501
Discontinued R&D operations - 2,520,260
R&D tax credit - (1,025,992)
Adjusted earnings 1,041,881 (811,444) Cobra Biomanufacturing Plc 34
Notes to the Financial Statements 
for the Year Ended 30 September 2003
9 TANGIBLE FIXED ASSETS
Short
Plant and leasehold Freehold Assets
laboratory Office building land and under
equipment equipment improvements buildings construction Total
££££££
Cost
At 1 October 2002 3,176,614 427,397 1,845,427 - - 5,449,438
Additions 406,054 78,133 - 1,387,001 1,185,314 3,056,502
At 30 September 2003 3,582,668 505,530 1,845,427 1,387,001 1,185,314 8,505,940
Depreciation
At 1 October 2002 1,094,991 340,627 1,845,427 - - 3,281,045
Charge for the year 255,140 44,697 - - - 299,837
At 30 September 2003 1,350,131 385,324 1,845,427 - - 3,580,882
Net book value 
At 30 September 2003 2,232,537 120,206 - 1,387,001 1,185,314 4,925,058
At 30 September 2002 2,081,623 86,770 - - - 2,168,393
The net book value of tangible fixed assets includes £250,043 (2002 £299,782) in respect of assets held under finance
leases. The assets under finance leases consist of plant and laboratory equipment.
The cost of tangible assets includes £15,593 (2002 nil) of capitalised interest relating to the property mortgage loan
taken out to purchase freehold land and buildings.  
10 INVESTMENTS
Company £
At 1 October 2002 and at 30 September 2003 600,000
The investments listed above are in the Company’s wholly owned subsidiary, Cobra Biologics Limited.
11 STOCKS AND WORK IN PROGRESS
Group Company
2003 2002 2003 2002
£ £ £ £
Raw materials & consumables 198,155 125,903 - -
Work in progress 8,764 315,275 - -
206,919 441,178 - - Cobra Biomanufacturing Plc 35
Notes to the Financial Statements 
for the Year Ended 30 September 2003
12 DEBTORS
Group Company
2003 2002 2003 2002
£ £ £ £
Trade debtors 1,476,915 1,267,878 - -
Amounts owed by group undertakings - - 4,533,185 3,903,000
Corporation tax 323,278 786,385 - -
Other debtors 137,075 101,520 7,865 71,606
Prepayments 318,110 217,606 20,995 26,602
Deferred taxation 225,000 - - -
2,480,378 2,373,389 4,562,045 4,001,208
Included in amounts owed by group undertakings for the Company is £4,535,185 (2002 £3,903,000) falling due after
more than one year.  
13 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group Company
2003 2002 2003 2002
£ £ £ £
Current instalments on loans 36,250 - - -
Obligations under finance leases 377,070 131,431 - -
Trade creditors 1,934,829 899,821 286,565 206,195
Amount payable to former parent undertaking 323,278 786,385 - -
Other taxation and social security costs 62,318 41,550 - -
Deferred income 124,700 519,669 - -
Other creditors 31,287 64,998 - -
Accruals 261,870 168,890 8,630 11,235
3,151,602 2,612,744 295,195 217,430
14 CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR
Group Company
2003 2002 2003 2002
£ £ £ £
Loans 1,051,250 - - -
Obligations under finance leases 122,247 162,292 - -
1,173,497 162,292 - - Cobra Biomanufacturing Plc 36
Notes to the Financial Statements 
for the Year Ended 30 September 2003
15 LOANS
Group Company
2003 2002 2003 2002
£ £ £ £
Amounts falling due:
In one year or less or on demand 36,250 - - -
In more than one year but less than two years 108,750 - - -
In more than two years but less than five years 326,250 - - -
In more than five years 616,250 - - -
1,087,500 - - -
The long-term loan is a mortgage facility secured against freehold land and buildings. The loan is repayable in equal
instalments monthly, over a ten-year period commencing June 2004. The rate of interest payable is 1.65% over HSBC
Bank Plc’s base rate.
16 OBLIGATIONS UNDER FINANCE LEASES
Group Company
2003 2002 2003 2002
£ £ £ £
Payable within one year 377,070 131,431 - -
Payable between one and two years 122,247 114,979 - -
Payable between two and five years - 47,313 - -
499,317 293,723 - -
17 OTHER FINANCIAL COMMITMENTS
At 30 September 2003 the Group had annual commitments under non-cancellable operating leases as follows:
Land & buildings Other
2003 2002 2003 2002
£ £ £ £
Expiring within one year 66,795 44,020 1,600 -
Expiring between one and two years - - 3,157 1,541
Expiring between two and five years - - 191 191
Expiring in greater than five years 77,221 77,221 - -
144,016 121,241 4,948 1,732
The Company has no amounts due under non-cancellable operating leases. Cobra Biomanufacturing Plc 37
Notes to the Financial Statements 
for the Year Ended 30 September 2003
18 CALLED UP SHARE CAPITAL
2003 2002
No. £ No £
Authorised
Ordinary shares of 10p each 27,000,000 2,700,000 20,000,000 2,000,000
No. £
Allocated, called up and fully paid
At 1 October 2002 13,000,000 1,300,000
Issued at placing and open offer 6,500,000 650,000
At 30 September 2003 19,500,000 1,950,000
On 7 June 2002 the Company entered into a placing agreement with Collins Stewart Limited, as disclosed in the
admission document, to issue to Collins Stewart Limited a warrant to subscribe for 390,000 ordinary shares at the
placing price of 100.0 pence. The warrant is exercisable at any time up to the fifth anniversary of the Company’s
Admission to the Alternative Investment Market on 13 June 2002.
On 23 June 2003 the authorised share capital of the Company was increased to 27,000,000 
On 23 June 2003 the Company issued a further 6,500,000 ordinary shares of 10.0 pence each by way of a placing and
open offer at a price of 80.0 pence per ordinary share.
At 30 September 2003 the Company had issued 1,343,138 ordinary shares under the unapproved share option
scheme to employees, details of which are as follows: 
At At
1 October Granted 30 September Exercise Date from
2002 in year 2003 price which Expiry
No No No pence exercisable date
Issue 13 June 2002 691,040 - 691,040 100.0 14.06.05 12.06.12
Issue 7 July 2003 - 652,098 652,098 96.5 08.07.06 06.07.13
691,040 652,098 1,343,138 Cobra Biomanufacturing Plc 38
Notes to the Financial Statements 
for the Year Ended 30 September 2003
19 RECONCILIATION OF SHAREHOLDERS’ FUNDS AND MOVEMENT ON RESERVES
Group
Share Share Merger Profit &
capital premium reserve loss account Total
£££££
As at 1 October 2002 1,300,000 5,597,837 29,728,872 (31,804,239) 4,822,470
Issue of shares 650,000 4,550,000 - - 5,200,000
Issue costs - (515,344) - - (515,344)
Profit for the year - - - 1,041,881 1,041,881
At 30 September 2003 1,950,000 9,632,493 29,728,872 (30,762,358) 10,549,007
Company
Share Share Profit & loss 
Capital Premium Account Total
££££
As at 1 October 2002 1,300,000 5,597,837 (4,322) 6,893,515
Issue of shares 650,000 4,550,000 - 5,200,000
Issue costs - (515,344) - (515,344)
Loss for the year - - (3,033) (3,033)
At 30 September 2003 1,950,000 9,632,493 (7,355) 11,575,138
20 NOTES TO THE STATEMENT OF CASH FLOWS
(a) Reconciliation of operating loss to net cash flow from operating activities
2003 2002
£ £
Operating profit/(loss) 731,876 (3,326,784)
Depreciation of tangible fixed assets 299,837 432,993
Decrease / (increase) in stock 234,259 (162,146)
Increase in debtors (259,854) (834,975)
(Decrease)/increase in creditors (561,302) 859,155
Net cash inflow/(outflow) from operating activities 444,816 (3,031,757)
(b) Analysis of net movement in net funds
Cash
2002 Flow 2003
££ £
Cash at bank and in hand 264,546 219,241 483,787
Bank loan - (1,087,500) (1,087,500)
Short-term deposits* 2,350,000 4,427,964 6,777,964
Finance leases (293,723) (205,594) (499,317)
2,320,823 3,354,111 5,674,934
The majority of finance leases are arranged in respect of sale and leaseback transactions. Accordingly new finance
leases are shown as a separate component of cash flow in the cash flow statement.
* Short-term deposits are included within the cash at bank and in hand on the balance sheet. Cobra Biomanufacturing Plc 39
Notes to the Financial Statements 
for the Year Ended 30 September 2003
21 FINANCIAL INSTRUMENTS
An explanation of the Group’s objectives, policies and strategies for the role of derivatives and other financial
instruments in creating the risks of the Group can be found on page 9. The Group’s policy is not to enter into
derivative transactions.  The financial instruments employed by the Group other than short-term debtors and
creditors are used to fund its operations and comprise cash, short-term deposits, long-term loans and finance leases. 
The Group’s policy during the year ended 30 September 2003 was to place the majority of its cash on short-term
deposit with its bankers, to finance the purchase of freehold land and buildings through mortgage finance and to
finance the purchase of fixed assets through sale and leaseback, where possible, for cash flow purposes.
The Group’s exposure to interest rate risk is limited to finance leases which are typically fixed rate, and its mortgage
facility and cash deposits which are typically floating rate. 
As permitted by Financial Reporting Standard ("FRS") No.13 the disclosures below with the exception of currency
exposure, exclude short-term debtors and creditors.
Interest rate risk profile of financial assets
The interest rate profile of financial assets of the Group as at 30 September 2003 is as follows:
Financial assets Floating rate Total
on which financial
no interest assets
is earned
£££
2003
Sterling 348,467 6,777,964 7,126,431
US Dollar 135,320 - 135,320
483,787 6,777,964 7,261,751
2002
Sterling 264,546 2,350,000 2,614,546
264,546 2,350,000 2,614,546
Floating rate financial assets comprise cash deposits on money market deposit at call.
Interest rate risk profile of financial liabilities
The interest rate profile of the financial liabilities of the Group as at 30 September 2003 is as follows:
Fixed rate Floating rate Total
financial financial
liabilities liabilities
£££
2003
Sterling 499,317 1,087,500 1,586,817
2002
Sterling 293,723 - 293,723
The weighted average interest rate on fixed rate financial liabilities at 30 September 2003 was 7.1% (2002 6.2%).
The weighted average period to maturity of fixed rate financial liabilities at 30 September 2003 was 17 months
(2002 24 months).
The fixed rate financial liabilities were confined to obligations under finance leases. Floating rate financial
instruments comprise a mortgage facility with the Group’s principal banker with an interest rate of 1.65% over the
bank’s base rate. Cobra Biomanufacturing Plc 40
Notes to the Financial Statements 
for the Year Ended 30 September 2003
21 FINANCIAL INSTRUMENTS (continued)
Maturity of financial liabilities   
The maturity profile of the Group’s financial liabilities as at 30 September 2003 was 
2003 2002
£ £
Payable within one year 413,320 131,431
Payable between one and two years 230,997 114,979
Payable between two and five years 326,250 47,313
Payable in more than five years 616,250 -
1,586,817 293,723
Currency exposures 
The table below shows the Group’s currency exposures that give rise to net currency gains and losses recognised in
the profit and loss account.  Such exposures comprise monetary assets and liabilities of the Group that are not
denominated in the operating currency of the operating unit involved.
Functional currency of Net currency monetary assets
Group operations US Dollar Euro Total
£££
2003
Sterling 293,990 60,180 354,170
2002
Sterling ---
Borrowing facility
At the year end the Group did not have a borrowing facility. 
Fair Values of financial assets and financial liabilities 
The fair value, based upon the market value or discounted cashflows of the financial instruments detailed above
was not materially different from their book values.
22 RELATED PARTY TRANSACTIONS
During the year the Group sold goods in the normal course of business to ML Laboratories Plc (whose shareholding
in the Company was reduced from 46% to 5% on 28 May 2003) for £689,469 (2002 £260,600), £353,433 (2002
£102,577) of which related to an agreement entered into on 6 June 2002 and revised on 28 July 2003 in which ML
Laboratories Plc would continue to occupy a proportion of the property leased by the Group until 30 September
2004 in return for a licence fee in respect of rent and an agreed proportion of the shared facility costs.
The Group also purchased goods in the normal course of business from ML Laboratories Plc for £13,673 (2002
£58,788)
At the balance sheet date the amount due from ML Laboratories Plc was £167,914 (2002 £176,760) and the amount
owed to them was £323,278 (2002 £855,461)
23 PENSION COMMITMENTS
The Group operates a defined contribution pension scheme established with Scottish Widows Plc.  The assets of the
scheme are held separately from those of the Group and are independently administered.  The contributions
payable by the Group under the scheme amounted to  £93,181 (2002 £96,733).  Contributions totalling  £nil (2002
£9,217) were payable at the year-end. Cobra Biomanufacturing Plc 41
Notice of Annual General Meeting
Notice is given that the Annual General Meeting of Cobra Biomanufacturing Plc will be held at the offices of Collins
Stewarts Limited, 9th Floor, 88 Wood Street, London, EC2V 7QR on 26 February 2003 at 11.00am.
To transact the following business:
Ordinary Business
1. To receive the accounts for the year ended 30 September 2003 and the report of the directors and the auditors
thereon;
2. To re-appoint as a director, Peter Fothergill. 
3. To re-appoint as a director, Michael Gatenby, having been appointed a director since the previous Annual Report
4. To re-appoint Ernst & Young LLP as auditors of the Group and to authorise the directors to determine their
remuneration.
Special Business
To consider and, if thought fit, (and subject in the case of resolution 6 to the passing of resolution 5) pass the following
resolutions which in the case of resolution 5 will be proposed as an ordinary resolution and in the case of resolution 6 will
be proposed as a special resolution:
5. That the directors of the Company be and are hereby generally and unconditionally authorised in accordance with
Section 80 of the Companies Act 1985 ("the Act")(in substitution for all existing authorities under the said Section
80) to exercise all the powers of the Company to allot relevant securities (within the meaning of the said Section
80) up to an aggregate nominal amount of £694,771 provided that this authority shall expire at the conclusion of
the next Annual General Meeting of the Company after the passing of this resolution (or, if earlier, 24 May 2005)
and provided further that the Company  may before such expiry make any offers or agreements which would or
might require relevant securities to be allotted after such expiry.
6. That the directors of the Company be and are hereby empowered pursuant to Section 95(1) of the Act to allot
equity securities (within the meaning of Section 94(2) of the Act) for cash as if Section 89(1) of the Act did not
apply to any such allotment, provided that this power shall be limited to:
a. the allotment of equity securities in connection with a rights issue in favour of the holders of ordinary shares
(notwithstanding that, by reason of such exclusions or other arrangements as the directors may deem necessary
or desirable to deal with fractional entitlements or legal or practical problems under the laws of, or the
requirements of any recognised regulatory body or any stock exchange in, any territory, the equity securities to
be issued are not offered to all such holders in proportion to the number of ordinary shares held by each of
them); and 
b. the allotment (otherwise than pursuant to paragraph (a) above) of equity securities up to an aggregate
nominal value of £97,500;
and shall expire at the conclusion of the next Annual General Meeting of the Company after the passing of this
resolution (or if earlier on 24 May 2005), save that the Company may before such expiry make any offers or
agreements which would or might require equity securities to be allotted after such expiry.
By order of the Board Registered in England No.4442927 
Registered office
Stephenson Building
Matthew Baker The Science Park
Company Secretary                                                                 Keele, Staffordshire 
2 December 2003 ST5 5SP Cobra Biomanufacturing Plc 42
Notice of Annual General Meeting
Notes:
1. Members entitled to attend and vote at the meeting may appoint one or more proxies to attend and, on a poll,
vote on their behalf. A proxy need not be a member of the Company.
2. The register of directors’ interests in the Company’s shares and copies of the directors’ service contracts will be
available for inspection at the registered office of the Company during normal business hours from the date of this
notice until the date of the meeting and at the place of the meeting from fifteen minutes before the meeting
until it closes.
3. An explanation of the special business is given in the directors’ Report on pages 13.
4. In accordance with Regulation 41 of the Uncertificated Securities Regulations 2001 the Company specifies that only
those shareholders registered in the Company’s register of members on 5.00pm on 24 February 2004 will be
entitled to attend or vote at the meeting and that the number of votes which any such shareholder may cast,
upon a poll, will be determined by reference to the number of shares registered in such shareholder’s name at that
time. Cobra Biomanufacturing Plc 43
Shareholder Information
Financial Information
Interim results for the six months to 31 March in June.
Final results for the year to 30 September in December.
Annual General Meeting
The Annual General Meeting will be held on 26 February 2004 at 11:00 am at the offices of Collins Stewart Limited, 9th
Floor, 88 Wood Street, London, EC2V 7QR. The notice of the meeting is set out on pages 41 and 42. 
Share Price Information
The Company’s share price is available from the website of Cobra Biomanufacturing Plc under www.cobrabio.com.
Company Web Site
The Company’s website provides information on products, activities and financial information. It includes latest financial
information and press releases and any other information that is relevant to the Company.
Shareholder Enquiries
Any queries regarding individual shareholdings, transfers etc, should be directed to Capita Registrars.
Shareholders wishing to consolidate two or more individual certificates may do so by writing to Capita Registrars at the
address given overleaf, enclosing the certificates to be consolidated. 
Where shareholders are receiving duplicate sets of accounts or mailing, as a result of inconsistencies in the name or
address details, they should advise the registrars so that this can be corrected. Cobra Biomanufacturing Plc 44
Directors, Registered Office and Advisors
Directors
Geoffrey Peter Fothergill        (Chairman)
David Robert Thatcher            (Chief Executive Officer)
Peter Alistair Coleman            (Finance Director)
David Philip Bloxham             (Independent Non-executive Director)
Michael Richard Brock Gatenby (Independent Non-executive Director)
Nigel Kenneth Harry Slater     (Independent Non-executive Director)
Company Secretary
Edward Matthew Scott Baker
Cobbetts 
Ship Canal House
King Street
Manchester M2 4WB
Auditors 
Ernst & Young LLP
100 Barbirolli Square
Manchester M2 3EY
Bankers
HSBC Bank Plc
Crown Bank
Hanley
Stoke on Trent ST1 1DA
Bank of Scotland
600 Gorgie Road
Edinburgh
EH11 3XP
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Registered Office
Stephenson Building
The Science Park
Keele
Staffordshire ST5 5SP
Registered in England No: 4442927   Cobra Biomanufacturing Plc 45
Glossary of Terms
AIDS – Acquired Immune Deficiency Syndrome.
Bacillus subtilis – a species of Bacillus used industrially at
large scale to manufacture enzymes for washing powders
and garment treatment.
Biopharmaceuticals – medicines where the active principal
cannot be chemically synthesised and comprise either
recombinant DNA, Protein or Virus.
Cell Biology – the study of cells and their components,
functions, behaviour and growth.
Cell Line – a cell that is maintained in culture for research
and medicinal purposes.
Cell Therapy – use of live cells as medicinal products.
CMC (Chemistry, Manufacturing and Controls) dossier –
crucial component of the documentation required to gain
regulatory approval for human clinical trials. 
CHIVAC – Chinese AIDS Vaccine initiative, an organisation
developing a DNA HIV/AIDS vaccine for the Far East. The
initiative comprises three projects; CHIVAC I, CHIVAC II
and CHIVAC III.
Cobra – Cobra Biomanufacturing Plc and its wholly owned
subsidiary Cobra Biologics Limited ("The Group").
DNA – Deoxyribonucleic Acid, a molecule that encodes
genetic information.
Escherichia coli (E. coli) – a genus of enteric bacteria.
Strains of which have over 25 years of safe industrial use
as vehicles for the manufacture of biopharmaceutical
products.
EuroVac – European Vaccine Effort Against HIV/AIDS, a
European research cluster funded since 2000 by the
European Union, comprising 21 laboratories Europe-wide
developing a DNA HIV/AIDS vaccine for the Far East. 
GMP – Good Manufacturing Practice, a code of practice
that ensures medicinal products are produced consistently
and to the appropriate quality standards. In the UK,
manufacturers of medicinal products require accreditation
with the Medicines and Healthcare products Regulatory
Agency 
HIV – Human Immuno-deficiency Virus, virus which
destroys the immune system leading to chronic infection
and death, a disease called AIDS.
IAVI – International AIDS Vaccine Initiative, a US
organisation, established in 1996. IAVI is a global
organisation whose aim is the generation of preventative
vaccines for HIV/AIDS that will be available worldwide. 
Institut Pasteur – an organisation dedicated to the
prevention and treatment of diseases. Their activities
include biological research, public health activities and
education.
Lentivirus – a type of virus, which can be engineered to
deliver useful genes to human tissues.
Listeria – a bacteria whose ability to invade human cells
can be exploited to deliver therapeutic benefit.
Malaria – a major parasitic disease transmitted by the
mosquito, which causes debilitating disease and death in
tropical countries.  
Molecular Biology – the manipulation or engineering of
genetic material.
Multiple Sclerosis – degenerative disease caused by the
destruction of nerve tissue by the body’s immune system.
NGO – Non-Governmental Organisations, private not for
profit organisations, which fund activities to enhance the
common good.
ORT® – Operator Repressor Titration, a host vector system
that avoids the use of antibiotics and antibiotic resistant
genes during biological manufacture.
Plasmid DNA vaccines/medicines – vaccines/medicines
where the active ingredient is made of DNA produced in
bacteria and which encodes a therapeutic gene. Plasmid
DNA being replicating circular DNA encoding genes.
Protein products/manufacture – medicines (the
manufacture of medicines) where the active ingredient is
protein.
Recombinant – produced by genetic engineering.
SAAVI – South African AIDS Vaccine Initiative, supported
by the South African Government established in 1999 as a
lead programme of the Medical Research Council of
South Africa, to co-ordinate the research and
development and testing of HIV/AIDS vaccines in South
Africa.
Salmonella – a bacteria related to E. coli which can be
used for oral vaccination.
UCOE – Ubiquitous Chromatin Opening Elements, genetic
elements that support the expression of protein products
in mammalian cells by enabling the rapid isolation of
stable, high producing bacterial strains for commercially
viable production.
Virus products/manufacture – medicines (the manufacture
of medicines) where the active ingredient is a
recombinant virus engineered to deliver DNA encoding a
therapeutic gene. Cobra Biomanufacturing Plc
Registered Office
Stephenson Building
The Science Park
Keele 
Staffordshire
ST5 5SP
UK
Tel: +44(0) 1782 714181
Fax: +44(0) 1782 714168
www.cobrabio.com