making tomorrow’s medicines
Cobra Biomanufacturing Plc
Annual Report and Accounts 2005
for the year ended 30 September
60011 Cobra cover A3  27/1/06  9:11 am  Page c1 Contents
Page
Financial highlights 1
Chairman’s statement 2
Chief Executive’s review 3-4
Financial review 5-7
Board of directors 8
Senior management 9-10
Report of the directors 11-13
Corporate governance 14-15
Report on directors’ remuneration 16-19
Report of the auditors 20
Page
Group profit and loss account 21
Balance sheets 22
Group statement of cash flows 23
Reconciliation of net cash flow to
movement in net funds 23
Notes to the financial statements 24-36
Notice of Annual General Meeting 37-38
Shareholder information 39
Directors and advisors 40
Glossary of terms 41
60011 Cobra cover A3  27/1/06  9:11 am  Page c2 Cobra Biomanufacturing Plc 1
Financial Highlights 2005
Turnover
FY 2005 up 120% £7.7m (FY 2004: £3.5m)
H2 2005 up 53% to £4.7m (H1 2005: £3.1m)
0.0
(1.0)
(1.5)
(0.5)
1.0
0.5
(2.0)
(2.5)
(3.0)
(3.5)
(3.3)
(1.5)
(0.4)
0.2
H1 04 H2 04 H1 05 H2 05
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
H1 04 H2 04 H1 05 H2 05
1.5
2.0
3.1
4.7
4.0
3.0
3.5
2.0
2.5
1.5
0.5
1.0
0.0
Sep 2004 Mar 2005 Sep 2005
3.2
2.6
3.0
0.0
(0.5)
0.5
(1.0)
(1.5)
(1.3)
(1.0)
(0.6)
0.2
H1 04 H2 04 H1 05 H2 05
(4.0)
Cash at bank (inc short term deposits)
Sept 2005 £3.0m (Sept 2004: £3.2m)
(31 Mar 2005: £2.6m)
Profit/(loss) before tax
FY 2005 £0.4m loss (FY 2004: £2.3m loss)
H2 2005 £0.2m profit (H1 2005: £0.6m loss)
Cash flow
(before management of liquid resources and financing)
FY 2005 £0.2m outflow (FY 2004: £4.8m outflow)
H2 2005 £0.2m inflow (H1 2005: £0.4m outflow)
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 1 Cobra Biomanufacturing Plc 2
Chairman’s Statement
The results for the financial year ended 30 September 2005
reflect a continuation of the trends seen at the half year
with turnover 120% ahead of the previous financial year, a
record for Cobra of £7.7m (2004: £3.5m). The contracted
forward order book for the financial year 2006 currently
stands at £5.0m (Jan 2005: £2.7m). 
In 2005 Cobra generated £0.6m cash from operations (2004:
£2.0m outflow), a loss before tax of £0.4m (2004: £2.3m) and
after tax of £0.3m (2004: £2.4m loss). In the second half of
the financial year the Group traded profitably and was cash
generative. Cash at bank (inc short term deposits) at the end
of the financial year stood at £3.0m (2004: £3.2m), up from
£2.6m as at 31 March 2005, despite a further £0.8m of
capital investment in the year (2004: £3.2m).
This improvement came from our focus on North America,
which provided 79% of turnover (2004: 31%) reflecting the
region’s dominant position in the global biotechnology
market. Further investment in business development is
underway to increase Cobra’s penetration of this vitally
important market. Investment in manufacturing staff is also
ongoing to underpin the growing forward order book with
increased headcount at both the Keele and Oxford facilities.
The recruitment of internationally experienced senior
managers has also been completed to ensure that the
expanding capability is directed to meet the highest
regulatory standards in both the US and the EU.
We are also in discussions with two major customers
concerning their longer term requirements for Phase III
materials and commercial supply, which could have a direct
bearing on the scale and shape of any new capacity that
may become necessary, and in this regard facilities have
been identified in both Europe and North America. We
continue to review opportunities to expand our service
offering and a thorough review of potential partners in
Europe and North America is nearing completion.
During the year the Executive Directors have undertaken a
comprehensive risk assessment exercise. The allocation of
responsibility for each risk and its management is now
underway. A regular risk review will form part of the annual
cycle of governance procedures. 
Cobra has made a strong recovery in response to the
challenges faced in 2004, leading to a profit in the second
half of 2005. The Group has demonstrated its resilience,
flexibility and professionalism by widening its range of
services, increasing penetration of the North American
market and positioning itself to benefit from the growth in
demand for biopharmaceuticals and the contributions of all
employees in achieving this outcome are fully recognised. 
Cobra is now poised to move into the next stage of its
development as a profitable and leading provider of
specialist biomanufacturing services to the global
marketplace, based upon longer term supply agreements
with customers and agreements for products moving into
late stage development.
G Peter Fothergill
Executive Chairman
10 January 2006
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 2 Cobra Biomanufacturing Plc 3
Chief Executive’s Review
Cobra’s business is the provision of manufacturing expertise
to accelerate the clinical development of our clients’
experimental drug candidates. Recently Cobra has
successfully adapted to a rapidly expanding market for these
specialist services evidenced by an average growth in
turnover of 45% over the past four reporting periods. The
strategy underpinning this growth has been our sales focus
in the North American market and broadening our offering
to cover manufacture of all types of biopharmaceuticals.
Cobra’s major client base, comprising 90% of turnover, is
small to medium sized biotech product development
companies. The appetite for investment in such companies
continues, particularly in North America and the prospects
for Cobra’s sustained expansion are encouraging.
Geographic Trends 
North America continues to dominate the biotechnology
industry both in terms of product development and global
investment. Penetration of the North American market is a
key target for Cobra and the focus of the sales and
marketing effort in this territory led to a 460% increase in
turnover during 2005 to £6.1m (2004: £1.1m). This represents
79% of turnover (2004: 31% 2003: 24%). Cobra now has
three sales staff operating in North America centred in the
West Coast, Mid West and East Coast biotechnology hubs.
Because of our location, the UK and Continental Europe
remain important potential markets for Cobra. However the
funding environment in Europe for small biotechnology
companies, particularly start-ups, is extremely tight and
turnover in these territories has dropped by 36% and 20%
respectively compared with 2004. Given the opening up of
the IPO market and other investment trends we expect that
the European market for Cobra’s services will increase over
the coming financial year.
Protein Products
Protein products dominate the world market for
biopharmaceuticals. The recent outstanding success of
biopharmaceutical based medicines (with current sales of
$60.0bn*) continues with the introduction of a number of
recent blockbuster products (e.g. Herceptin, Avastin,
Remicade and Humira). Growth of the biopharmaceuticals
market is double that of the conventional drugs’ market and
is driving further investment in the search for new protein
drugs. Development of this type of medicine has become
and will remain the major potential market for Cobra’s
services. Cobra has over ten years of technical experience in
the development of both microbial and mammalian protein
products. Over the past year turnover from protein
production has grown by 473% to £3.2m (2004: £0.6m) and
now constitutes 41% of sales (2004: 16% 2003: 26%). The
worldwide market for biomanufacturing services the
majority of which is protein manufacture is approaching
$2.0bn** and the market for supply of early stage products
$460m**. Cobra is successfully building a track record in this
expanding market by offering specialised manufacturing
services where the production process is non-standard and
development requires the application of innovative science. 
Virus Products
Turnover from virus manufacture has continued to expand,
up 78% compared with 2004. Virus manufacture is highly
specialised requiring specifically designed containment
facilities and expertise in the production of each particular
virus type. Over the past two years Cobra has gained
expertise in the manufacture of all the major types of
genetically engineered virus being developed for medical
intervention and this puts the Group in a strong position to
compete globally for large scale virus manufacturing
programmes. Another attraction of the virus business is that
relatively modest capacity is required to manufacture
commercial quantities of many virus products. Cobra has
already invested in such capacity and we are able to offer a
highly competitive ‘clone to market’ development package
in a relatively small but potentially profitable market.
*   Werner 2005 – Bioprocess International (Sept 2005)
** High Tech Business Decisions ‘Biopharmaceutical Contract Manufacturing 2005’
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 3 Cobra Biomanufacturing Plc 4
Chief Executive’s Review
DNA Products
After experiencing a rapidly declining trading environment
in 2004, the manufacture of DNA products recovered
throughout 2005 by an impressive 32% but is still below the
level reached in 2003. We expect turnover from DNA
manufacturing to remain at this level in the short term.
Cell Products
Cell products are medicines where the active principle is a
bacterial cell itself, unlike Cobra’s other microbial products
which are products purified from such cells. In November
2005 we announced a long term manufacturing agreement
with Advaxis Inc, which gives Cobra an option on the
commercial manufacture of Advaxis’ products. Cobra also
owns a product development platform, called ORT-VAC,
which we continue to develop in collaboration with DSTL
(UK Defence Science and Technology Laboratory at Porton
Down). Earlier in the year Cobra and DSTL scientists jointly
published a paper in the prestigious peer reviewed journal
Infection and Immunity demonstrating that in a pre-clinical
model a single dose of an ORT-VAC based vaccine can
protect against a lethal plague challenge.
Regulatory Environment
Cobra’s major source of income is from the supply of drugs
for clinical evaluation. In order to assure patient safety, the
manufacture of commercially marketed pharmaceutical
products is governed by a code of Good Manufacturing
Practice referred to as cGMP. Under the EU Clinical Trials
Directive enacted in July 2004, products for all clinical
evaluation must also be manufactured under full cGMP.
These standards must be met regardless of the subsequent
regulatory destination of the products manufactured and
compliance to these standards can account for more than
50% of the manufacturing cost. During 2005 I am pleased to
report that Cobra’s Keele and Oxford facilities underwent a
comprehensive review by the GMP Inspectorate of the UK
Medicines and Healthcare products Regulatory Agency
(MHRA), and our licences were subsequently reaccredited for
the manufacture of all major types of biopharmaceutical.
Outlook for Cobra’s Services
Our market is small to medium sized public and well
established private biotechnology companies, which do not
possess the specialised manufacturing capacity required to
develop their products. Cobra is now working with several
companies whose products are showing much promise in the
clinic and the expectation is that these products will be
rapidly commercialised. Our corporate objective is to become
a manufacturing partner of these companies as their
products approach and gain regulatory approval.
A major step in Cobra’s development in 2005 was the
agreement with Auxilium Pharmaceuticals Inc on the
manufacture of their lead development product for Phase III
clinical trials (penultimate to commercialisation) and a long
term commercial manufacturing agreement with Advaxis
Inc. These agreements are an indication of how Cobra is
making progress towards its corporate goal of becoming a
major manufacturer of marketed biopharmaceutical
products.
Dr David Thatcher
Chief Executive
10 January 2006
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 4 Cobra Biomanufacturing Plc 5
North American turnover contributed £6.1m of the total in
2005 (2004: £1.1m) or 79%. This more than compensates for
the decline in turnover in all other territories. Turnover for
the UK stood at £1.3m (2004: £2.0m), Continental Europe
£0.2m (2004: £0.3m) and the Rest of the World £0.1m (2004:
£0.2m), which combined contributed 21% of the total
compared with 69% in 2004.
Financial Review
The financial performance for 2005 was an excellent
turnaround result. Turnover for 2005 increased by 120% to
£7.7m (2004: £3.5m), which resulted in an operating cash
inflow of £0.6m (2004: £2.0m outflow) and a loss after tax of
£0.3m compared with the £2.4m loss experienced in 2004.
The Group also spent £0.8m (2004: £3.2m) on essential
capital investment during the year, which was partially
funded by £0.2m of sale and leaseback financing and £0.2m
additional mortgage funding. As a result the Group closed
the financial year with cash at bank (including short term
deposits) of £3.0m (2004: £3.2m) and net funds of £0.5m
(2004: £0.9m).
Turnover
The turnover for the year was generated from 38 customers
worldwide, however the increase in the year can be directly
attributed to the Group’s focus on the North American
market and a shift towards the growing markets for both
protein and virus production.
Protein production contributed £3.2m or 41% of the total in
2005 (2004: £0.6m) and virus production contributed £2.8m
or 36% (2004: £1.6m). DNA production, although declining
in percentage terms to 18% of 2005 turnover compared
with 30% in 2004, did increase in real terms to £1.4m
(2004: £1.1m). Cell Line production maintained at £0.4m
(2004: £0.4m).
Cell Line 5% DNA 18%
Protein 41%
Virus
36%
Europe 3% RoW 1%
UK
17%
North America
79%
Turnover 2005 by product type
2005 % 2005 2004 Inc
DNA 18% 1,391 1,050 32%
Protein 41% 3,177 554 473%
Virus 36% 2,758 1,551 78%
Cell Line 5% 395 361 9%
7,721 3,516 120%
Turnover 2005 by destination
2005 % 2005 2004 Inc/dec
UK 17% 1,285 1,993 -36%
North America 79% 6,138 1,097 460%
Europe 3% 210 263 -20%
RoW 1% 88 163 -46%
7,721 3,516 120%
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 5 Cobra Biomanufacturing Plc 6
£m
Financial Review
8.0
6.0
4.0
2.0
0.0
North America UK Europe & RoW
4.0
3.0
2.0
1.0
0.0
Cell Line DNA Virus Protein
£m
FY 2004
FY 2005
FY 2004
FY 2005
Gross margins – The increase in turnover had a positive
impact on gross margins, as capacity filled throughout the
year at Keele and Oxford, due to a significant element of
the cost of goods being primarily fixed facility and labour
costs. This, combined with Cobra only recruiting staff when
required, and where possible, passing the cost of
consumables directly to the customer resulted in gross
margins increasing to 56% for the year (2004: 45%), peaking
at 59% in the second half of the year.
Operating expenses – Operating expenses increased overall
by 18% to £4.7m in 2005 (2004: £3.9m). This increase can be
attributed to the following factors; firstly the Group’s focus
on North America and the increased effort directed towards
protein and virus production increased sales and marketing
expenditure, and secondly an increase in facility overhead
expenditure and the depreciation charge as the Group
expanded further into the new £5.5m Oxford Facility.
Loss before and after tax – The Group recorded its first
profitable trading period for 18 months in the second half
of the year to reduce the loss before tax of £0.6m in the first
half to a £0.4m loss for the full year (2004: £2.3m loss). With
an estimated R&D tax credit of £54k for the year, the loss
after tax for the financial year was £0.3m (2004: £2.4m loss).
Profitability and margins
Turnover by product type 2004 and 2005 Turnover by destination 2004 and 2005
Total H2 H1 Total
£000’s 2005 2005 2005 2004
Turnover 7,721 4,666 3,055 3,516
Cost of goods (3,398) (1,898) (1,500) (1,951)
Gross profit 4,323 2,768 1,555 1,565
Gross margin 56% 59% 51% 45%
Operating expenses (4,675) (2,501) (2,174) (3,949)
Operating (loss)/profit (352) 267 (619) (2,384)
Interest (43) (24) (19) 113
(Loss)/profit before tax (395) 243 (638) (2,271)
Taxation 54 33 21 (127)
(Loss)/profit after tax (341) 276 (617) (2,398)
(Loss)/earnings
per share (1.7) 1.5 (3.2) (12.3)
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 6 Cobra Biomanufacturing Plc 7
Financial Review
Cash Flow
Operating cash flow – The Group generated £0.6m cash
from operations in 2005 (2004: £2.0m outflow), £0.8m of
which was generated in the second half of the financial year.
Capital expenditure – The Group spent £0.8m on capital
investment (2004: £3.2m), £0.2m of which was for the
purchase of additional land adjacent to the Oxford Facility,
for further expansion, and the remainder being the
purchase of either replacement or contract specific plant and
laboratory equipment at Keele and Oxford. 
Financing – Cobra received net financing of £0.07m in the
year (2004: £0.66m), the majority of which was raised
through the Group’s continuing policy to fund the purchase
of capital investment through either sale and leaseback or
mortgage finance. 
Cash at bank (including short term deposits) – The improved
trading position, in particular in the second half of the year
and the continued funding of essential capital expenditure
throughout the year, ensured that the Group was cash
generative in the second half of the year and that the cash
outflow for the full year was limited to £0.12m (2004:
£4.10m), which resulted in a closing cash at bank (including
short term deposits) at 30 September 2005 of £3.04m (30
September 2004: £3.16m).
Research and Development 
Cobra continues to recognise that it has achieved its
competitive advantage in the complex market of
biopharmaceutical manufacturing, through investment in
research and development, and despite the Group’s focus
during 2005 being primarily on improving its trading
position, gross research and development expenditure
before government grant funding, fell by only 10% to
£0.32m (2004: £0.36m).  
Taxation
At 30 September 2005, the Group had trading tax losses
carried forward of £14.2m ensuring that the Group should
not be obliged to pay UK corporation tax for the
foreseeable future on any trading profits. 
The Group is entitled to claim research and development tax
relief, available under Schedule 20 of the Finance Act 2000,
in respect of financial year 2005, the result of which is a
credit of £54k to the profit and loss account. 
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
enter into financial derivatives for speculative or trading
purposes.
Interest Rate, Liquidity and Foreign Currency Risk
Interest rate risk – During the year the Group switched its
mortgage facility to the National Westminster Bank Plc,
increasing the balance outstanding to £1.3 million,
repayable over a 13-year period commencing May 2007. The
Group utilises the availability of an ‘off-set’ arrangement
with the bank, which effectively means the Group currently
pays a fixed rate of 1.5% over the National Westminster
Bank Plc’s base rate on the outstanding mortgage balance. 
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 turnover
during the year, primarily from North America. The position
regarding currency risk is regularly reviewed and hedging
activities are initiated where appropriate, in addition the
currency exposure has been partially offset by overseas
expenditure.
Peter Coleman
Finance Director
10 January 2006
Total H2 H1 Total
£000’s 2005 2005 2005 2004
Operating cash flow 571 795 (224) (2,014)
Interest (43) (24) (19) 113
Tax 69 -69 323
Capital investment (786) (528) (258) (3,180)
Cash flow pre financing (189) 243 (432) (4,758)
Financing
Shares 2 -2 -
Mortgage 213 252 (39) (20)
Leasing (149) (63) (86) 675
66 189 (123) 655
Net cash flow (123) 432 (555) (4,103)
Opening cash at bank* 3,159 2,604 3,159 7,262
Closing cash at bank* 3,036 3,036 2,604 3,159
*including short-term deposits
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 7 Cobra Biomanufacturing Plc 8
Board of Directors
Peter Fothergill BA FCIM (Age 60), Chairman
Peter has 37 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 main board director responsible for
the majority of the Group’s profits when Fisons Plc was a
FTSE 100 company.
Peter subsequently formed his own strategic management
company that has been involved in management buy-out
and buy-in arrangements, consultancies and the creation of
new businesses in the healthcare sector. He has been
Chairman or director of 16 companies and is currently
Chairman of I Holland Limited, the world’s leading supplier
of tablet moulding tools to the global pharmaceutical
industry. He is a fellow of the Chartered Institute of
Marketing and sits on the boards of various charitable and
public bodies.
David Thatcher PhD (Age 58), Chief Executive
David trained as a protein chemist at the Universities of
Newcastle-upon-Tyne and Edinburgh. 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.
Peter Coleman FCMA MBA (Age 39), Finance Director
Peter has over ten years experience in the
pharmaceutical/biotechnology industry and has been Cobra’s
Finance Director since its flotation on AIM in June 2002.
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. 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.
David Bloxham PhD (Age 58),
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 Therapeutics Limited. He is
currently the Chairman of Evolutec Group Plc and the
Babraham Institute.
Michael Gatenby FCA (Age 61),
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 Chairman of
Alliance Pharma Plc and he is also a Trustee/Director of the
Stroke Association. 
Nigel Slater FREng (Age 52),
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, Unilever Nederland BV and Cobra Therapeutics Limited.
Peter Fothergill David Thatcher Peter Coleman David Bloxham Michael Gatenby Nigel Slater
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 8 Cobra Biomanufacturing Plc 9
Senior Management
Martin Comberbach PhD CEng CSci FlChemE (Age 50),
Director of GMP Manufacturing Operations 
Martin was appointed Cobra’s Director of GMP
Manufacturing Operations in October 2005. He has 25 years
international pharmaceutical/biotechnology experience. 
Trained as a biochemical engineer, he has an MSc from
University College London and a PhD from the University of
Manchester. After completing his post-doctoral studies in
North America, he began his industrial career as a
development scientist at Allelix Biopharmaceuticals Inc,
Canada. In 1986 he joined SmithKline RIT (now GSK
Biologicals) in Belgium as Fermentation Manager, where he
helped to develop human vaccine candidates. In 1998 he
returned to the UK and joined Metris Therapeutics Ltd as
Director of Scientific Operations, developing treatments for
uterine fibroids and endometriosis. Prior to Cobra, he was
Director of Manufacturing for GeneMedix Plc,
manufacturing sterile, injectable, anti-cancer products in
Shanghai for the Chinese market. 
Tony Mulcahy BSc (Hons) PhD (Age 41),
Director of Customer Relations and Marketing
After gaining an honours degree in Biochemistry and
Physiology at the University of Sheffield, Tony completed a
PhD at the University of Newcastle-upon-Tyne, while
conducting research over a period of seven years on
autoimmune diseases. 
He joined the research and development division of Cobra in
1994 and was involved in developing reliable, stable, high-
level gene expression systems and cell-based delivery systems
during seven years of research. In 2001, Tony joined the
biopharmaceutical manufacturing division and has been
involved in setting up the Business Development and
Account Management functions within the Group. During
his time in the Business development group he has held the
positions of Associate Director of Business Development and
European Director of Business Development before the
recent promotion to his current position.
Paul Stockbridge BSc PhD CBiol MIBiol FIQA (Age 52),
Corporate Director of Quality Assurance 
Paul was appointed Cobra’s Corporate Director of Quality
Assurance in October 2005. He holds a degree in Biological
Sciences and a PhD in fermentation and is registered as a
Qualified Person (QP) under the Permanent Provisions of the
EU directives.
Paul has over 25 years experience in the pharmaceutical /
biotechnology industry. He spent 23 years with Eli Lilly in the
UK, the first 10 years of which were in fermentation
development and production before transferring to the QA
department. During the following 13 years he gained
extensive experience in QA with responsibility for projects,
quality systems, engineering, clinical trials API manufacture
and recombinant biotechnology products. He acted as a
Senior Quality Advisor for Eli Lilly and travelled frequently to
the US and globally in connection with these activities. In
2002 he moved to Aventis Pharma where he was Head of
Quality Operations at their Holmes Chapel site. 
Amanda Weiss BSc (Hons) MSc (Eng) AMI ChemE (Age 35),
Deputy Director of Manufacturing Operations
Amanda graduated with an honours degree in Biochemistry
at the University of Liverpool and then went on to read a
Master’s degree in Biochemical Engineering at the University
of Birmingham. She joined Cobra in 1996 as a fermentation
scientist. Amanda has 10 years of biopharmaceutical
experience, including 8 years in a contract manufacturing
environment. She has expertise in microbial and mammalian
cell culture, scale-up, process engineering, GMP facility
design and validation and the large-scale manufacture of
biopharmaceuticals. She was also involved with the
exemplification and publication of Cobra’s ORT technology.
She was originally responsible for all Cobra’s fermentation
activities for process development and the manufacturing of
recombinant proteins, plasmid DNA and viruses. 
Amanda is now responsible for all GMP Manufacturing
Operations at Cobra’s Keele facility. This also covers project
management, production planning and scheduling activities
for all of Cobra’s customer programmes.
Martin
Comberbach
Tony Mulcahy Paul Stockbridge Amanda Weiss
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 9 Cobra Biomanufacturing Plc 10
Senior Management
Roy Cowell BSc (Hons) CSci CChem MRSC (Age 40),
Deputy Director of Quality Assurance
Roy joined Cobra in 1996 and has played a key role in
setting up the Quality Control Department. He is a QP under
Directive 2001/83/EC and has 19 years experience in the
pharmaceutical/biotechnology industry. He is also a member
of the Royal Society of Chemistry with Chartered Chemist
status. 
Roy began his career within the Safety of Medicines
Department of Zeneca Pharmaceuticals (now AstraZeneca
Plc), before moving into the Pharmaceutical Development
Group. In this role Roy gained broad experience in process
and formulation development for new chemical entities and
a broad range of formulations. Prior to joining Cobra, Roy
gained an honours degree in chemistry, awarded by Victoria
University of Manchester and undertook a role as Analytical
Chemist for the development of biopharmaceutical products. 
Tony Hitchcock BSc (Age 44),
Deputy Director of Process Science
Tony has been employed at Cobra since 1994, working
initially on the development of plasmid DNA purification
and the manufacture of plasmid DNA, filing patents and
publications on DNA manufacturing processes. More recently
he has managed Cobra’s purification and manufacturing
teams involved in the process development of purification
strategies for manufacture of plasmid DNA, virus and
recombinant proteins for clinical trials. He was appointed
Deputy Director of Process Science in December 2005.
Prior to Cobra, Tony worked for Zeneca Pharmaceuticals,
developing purification procedures for recombinant proteins
and the manufacture of these products for pre-clinical and
early clinical studies, including immunotoxins and cyokines.
He also worked for four years at the BioProducts Laboratory
at Elstree (formerly Blood Products Laboratory), developing
strategies to purify proteins from waste fractions from
plasma fractionation.
Tracey Pughe ACMA BA (Hons) (Age 31),
Group Financial Controller
Tracey gained an honours degree in Business Economics
from the University of Leicester in 1995. After graduating
Tracey worked for ICL Sorbus Ltd and then Spiral Packs
(London) Ltd where she obtained commercial experience as
an Account Manager. She later went on to complete the
Chartered Institute of Management Accountancy
examinations whilst working for Elkes Biscuits Ltd, an
operating division of Northern Foods Plc. 
Tracey joined Cobra in September 2002 as Financial
Controller and has played a key role in developing the
Group’s finance function.
Sheena Pumford CIPD (Age 44), Human Resource Manager
After completing a management training course with a
large retail organisation, Sheena was seconded to a training
role with the responsibility for the training of over 100 staff
and management. During this time she decided to specialise
in the field of human resource management and spent the
next 14 years in various training and personnel roles within
two large retailing organisations. 
In 1997 Sheena joined Cobra to set up a personnel
department providing advice to staff and management on a
wide range of personnel and training issues. She has spent
the last 8 years in the role and during this time has
completed an NVQ Level 4 in Personnel Management.
Sheena has played a fundamental role in the recruitment
and selection of employees as part of the Group’s expansion
plan.
Roy Cowell Tony Hitchcock Tracey Pughe Sheena Pumford
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 10 Cobra Biomanufacturing Plc 11
Report of the Directors
The directors of Cobra Biomanufacturing Plc present their
report to the shareholders, together with the audited
financial statements for the year ended 30 September 2005.
Principal Activities 
Cobra Biomanufacturing Plc is a holding company and its
only subsidiary is Cobra Biologics Limited. The principal
activity of the Group is the manufacture of protein, virus
and DNA 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 4 respectively.
Results and Dividend 
The Group loss for the period after providing for taxation
was £0.3m (2004: £2.4m loss) and an equivalent amount has
been deducted from reserves. The directors do not propose
the payment of an ordinary dividend (2004: nil).
The accumulated deficit carried forward for the Group
amounted to £33.5m (2004: £33.2m).
A financial review of results is included on pages 5 to 7.
Directors
The directors in office during the year are listed below. All
served throughout the year:
Peter Fothergill Executive Chairman
David Thatcher Chief Executive
Peter Coleman Finance Director
David Bloxham Independent Non-executive
Michael Gatenby Independent Non-executive 
Nigel Slater Independent Non-executive
Peter Coleman and David Bloxham retire by rotation and,
being eligible, offer themselves for re-election at the
forthcoming 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 Report on Directors’
Remuneration on pages 16 to 19.
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
2005 the trade creditors for the Company represented 59
days (2004: 53 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 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 Group 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 Group operates a share option
scheme, which 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. 
Employee Share Schemes
Employee involvement in financial performance is
encouraged through participation in the Company’s share
option schemes. At 30 September 2005, 79 employees,
including directors, held options over 1,864,790 ordinary
shares in the Company’s share option scheme. Further
information on share options is shown in note 18 on page
33.
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 11 Cobra Biomanufacturing Plc 12
Report of the Directors
Major Interests in Shares
At 3 January 2006, the following shareholders held interests
in excess of 3% of the ordinary share capital:
Percentage Number of
holding ordinary shares
Invesco UK 14.9% 2,900,200
Collins Stewart (CI) Limited 8.7% 1,693,750
Cavendish Asset Management 5.7% 1,115,000
Barclays Stockbrokers 5.6% 1,092,125
New Star Select Opportunities Fund 5.1% 1,000,000
Fidelity Investments 3.6% 701,900
TD Waterhouse 3.5% 678,041
ISIS Asset Management 3.3% 649,558
Smith & Williamson Barro Trust
(Collins Stewart) 3.1% 600,000
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 6 April 2006 at 11:00am at the offices of Buchanan
Communications Limited, 45 Moorfields, London, EC2Y 9AE.
The notice of the Annual General Meeting, together with
notes on the resolutions, is on pages 37 and 38.
In addition to the ordinary business there are three 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 7,492,720 ordinary shares of 10p each,
representing 38% 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, 2 July 2007. 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 or the new Cobra Biomanufacturing Plc Long
Term Incentive Plan which is referred to in Paragraph 3
below.
2. A special resolution to renew until the end of the next
Annual General Meeting or, if sooner, 2 July 2007 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.
3. An ordinary resolution to approve the adoption by the
Company of the Cobra Biomanufacturing plc 2006 Long
Term Incentive Plan the principal terms of which are
summarised in Appendix 1 of the circular to shareholders
dated 31 January 2006 and to approve the establishment
by the Company of the Cobra Biomanufacturing plc 2006
Employee Benefit Trust the principal terms of which are
summarised in Appendix 2 of the circular to shareholders
dated 31 January 2006 and to authorise the directors to
do all such acts or things as may be necessary or
desirable to implement the same.
In the opinion of the directors the passing of these
resolutions is in the best interests of the shareholders.
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 12 Cobra Biomanufacturing Plc 13
Report of the Directors
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.
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
1985. They are also responsible for safeguarding the assets
of the Group and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
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 7 April 2005. 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.
By order of the Board
Matthew Baker
Company Secretary
10 January 2006
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 13 Cobra Biomanufacturing Plc 14
Corporate Governance Statement
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 Combined
Code.
Although Cobra is listed on the Alternative Investment
Market and therefore does not need to comply with the
Combined Code, the Board has reviewed the corporate
governance of the Company and has implemented changes
it has felt appropriate, given the Company’s size. 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 meet 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. 
The board met six times in 2005, with each member
attending as follows: 
No of meetings held No of meetings
Board Member whilst a member attended
Peter Fothergill 6 6
David Thatcher 6 6
Peter Coleman 6 6
David Bloxham 6 6
Michael Gatenby 6 6
Nigel Slater 6 6
Board Committees
The following committees deal with specific aspects of the
Group’s affairs:
Audit Committee – comprises the non-executive directors
with Michael Gatenby as Chairman. The Committee meets at
least three times 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
at the invitation of the Committee 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 – comprises 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 16 to 19.
Nomination Committee – comprises the Chairman, Peter
Fothergill who is also Chairman of the Committee and the
non-executive directors. 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.
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 14 Cobra Biomanufacturing Plc 15
Corporate Governance Statement
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 meet 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 operates within a clearly defined
Group structure, and each member 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 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 also recognises the need for an effective risk
management process, and has therefore reinvigorated
during the financial year the development of an integrated
risk management process for the Group. The process has
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, presentations and other
announcements made during the year.
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 15 Cobra Biomanufacturing Plc 16
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
in respect of both executive and non-executive directors.
Reward Philosophy
To ensure corporate success and enhance shareholder value,
the Group needs people of high calibre able to meet the
challenges it faces.
The Group’s overall remuneration policy aims are to:
1. Attract, develop, motivate and keep talented people at
director and senior executive level.
2. Pay competitive total compensation packages to
directors and senior executives, with a significant
component linked to the attainment of performance
targets. When pay levels are set, account is taken of the
work a 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 Committee believes is an effective way of
bringing together their interests with those of external
shareholders.
The Company promotes greater ownership of its shares and
offers 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
at a salary determined by the executive directors. All
directors are subject to re-election at an Annual General
Meeting at least every three years. The Board set the
remuneration of the non-executive directors with reference
to third party consultants. The non-executive directors
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 2005 is set out in the
following table:
Total Total
2005 2004
£ £
Non-executive director
David Bloxham 22,500 21,750
Michael Gatenby 22,500 18,519
Nigel Slater 22,500 21,750
Total 67,500 62,019
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. The primary source of this information was
provided through subscription and access to the annual New
Bridge Street Consultants’ “Biotechnology Industry
Remuneration Survey”. The Committee met formally once in
the year to 30 September 2005 in addition to regular
discussion and the Board accepted the Committee’s
recommendations without amendment.
The members of the Committee are David Bloxham, Michael
Gatenby 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 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.
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 in the biotechnology
sector. 
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 Committee links executives’
rewards directly to the Group’s performance and
shareholders’ interests;
3. Evolve compensation schemes that encourage executives
to hold shares in the Company (such as a long term
incentive plan); and 
4. Overall, reward executives fairly and responsibly for their
contribution to the Group’s short and long term
performance. 
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 16 Cobra Biomanufacturing Plc 17
Report on Directors’ Remuneration
Elements of Remuneration
In deciding the executive directors’ total remuneration
package and individual elements of it, the Committee refers
to the reward policy and assesses where the Company
should be positioned relative to other companies. It has
obtained independent advice on appropriate comparisons
and treats them cautiously. 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, including Group performance. Any changes are made
with effect from 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 during the financial
year. The Committee reviews regularly the basis of the bonus
and the targets to be achieved.
The directors’ bonus for the financial year 2005 was
determined by both quantitative and qualitative
considerations and was directly linked to the financial year.
The quantitative objectives were based on Group turnover,
PBIT shareholder value and cash management and the
qualitative objectives were based on personal and team
achievements. 
The Chief Executive was entitled to receive up to a
maximum of 50%, the Finance Director 40% and the
Chairman 30% of their basic salaries under this scheme. In
addition the Committee may award an additional
discretionary bonus where merited.
Taking these factors into account the Committee
recommended the payment of bonuses as shown in the
table below in recognition of the substantial improvement
in the Group’s turnover and cash flow. In addition the
Committee recognised the significant personal achievement
in realising the strategy for diversification of the Group’s
product portfolio and geographic focus.
Other Benefits
Benefits for the Chief Executive, David Thatcher and the
Finance Director, Peter Coleman comprise the provision of a
motor car, private healthcare, death and disability in service
cover. The Chairman, Peter Fothergill receives a provision for
private healthcare and death and disability in service cover.
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
10% of salary for David Thatcher and 7% for Peter Coleman
and both 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.
Service Contracts
The Executive Directors have a notice period of one year.
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.
Elements of Remuneration
The basic salary, bonus, pension and benefits awarded to the executive directors during the year were as follows:
Basic Remuneration Pension Remuneration Pension
salary Bonus Benefits 2005 2005 2004 2004
£££ ££ ££
Executive directors
David Thatcher 165,767 20,000 6,669 192,436 16,360 221,168 12,067
Peter Fothergill 102,250 10,000 2,191 114,441 15,338 147,420 15,000
Peter Coleman 92,025 10,000 5,274 107,299 6,441 119,829 5,981
Total 360,042 40,000 14,134 414,176 38,139 488,417 33,048
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 17 Executive Share Options
The executive directors have been awarded share options over the Company’s shares as follows: 
At At Date from
1 October Granted 30 September Exercise which Expiry
2004 in year 2005 price exercisable date
Executive directors No No No pence
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
116,364 - 116,364 27.5 13.07.07 11.07.14
615,794 - 615,794
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
72,727 - 72,727 27.5 13.07.07 11.07.14
479,981 - 479,981
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
32,727 - 32,727 27.5 13.07.07 11.07.14
167,079 - 167,079
All of the share options to the directors were granted at the closing mid market price on the last dealing day before grant. The
market price of the Company’s shares at 30 September 2005 was 46.0 pence (30 September 2004 23.5 pence) and the range
during the year was 23.5 pence to 70.0 pence.
Cobra Biomanufacturing Plc 18
Report on Directors’ Remuneration
Directors’ Interests
At 30 September 2005, the directors had the following beneficial interests in the Company’s shares and options to subscribe for
shares under the Company’s share option scheme:
Ordinary shares
of 10p each Share options
2005 2004 2005 2004 
No No No No
Executive directors
David Thatcher 60,500 60,500 615,794 615,794
Peter Fothergill 60,000 60,000 479,981 479,981
Peter Coleman 15,500 15,500 167,079 167,079
Non-executive directors
David Bloxham 17,200 17,200 - -
Michael Gatenby 30,000 30,000 - -
Nigel Slater 9,000 9,000 - -
From the end of the financial year until 10 January 2006 there have been no changes in the above interests.
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 18 Cobra Biomanufacturing Plc 19
Report on Directors’ Remuneration
Introduction of the New Cobra Biomanufacturing Plc 2006 Long Term Incentive Plan
The Committee has recently reviewed the total remuneration of directors and senior executives and recommended the
introduction of a new long term incentive plan to be known as the Cobra Biomanufacturing plc 2006 Long Term Incentive Plan
(“the Plan”) and the establishment of a new employee benefit trust to be known as the Cobra Biomanufacturing plc 2006
Employee Benefit Trust (“the EBT”). The Plan and EBT are considered to be necessary to enhance the link between the
remuneration of directors and senior executives and the Company’s long term performance. A resolution to adopt the Plan and
EBT will be put to shareholders at the Annual General Meeting of the Company and further details of the resolution are
contained in the notice of the Annual General Meeting set
out on pages 37 and 38 of this report.
The graph shows the Company’s TSR (“Total Shareholder
Return”) compared to the FTSE Small Cap Pharmaceutical
& Biotechnology Sector for the period from 13 June 2002
to 30 November 2005. 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.
Nigel Slater
Chairman – Remuneration Committee
10 January 2006
2002 2003 2004 2005
20
40
60
80
100
120
140
160
TSR Performance Graph
— Cobra Bio-Manufacturing – Tot return Ind
— FTSE S/C Pharm & Biotec – Tot return Ind
Source: Datastream
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 19 Cobra Biomanufacturing Plc 20
Independent Auditors’ Report to the members
of Cobra Biomanufacturing Plc
We have audited the Group's financial statements for the year ended 30 September 2005, 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 judgements 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 2005 and of the loss 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
20 January 2006
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 20 Cobra Biomanufacturing Plc 21
Group Profit and Loss Account 
for the Year Ended 30 September 2005
Notes 2005 2005 2004 2004
££ ££
Turnover 2 7,720,576 3,516,351
Cost of sales (3,397,853) (1,951,044)
Gross profit 4,322,723 1,565,307
Sales, marketing and distribution costs (1,000,804) (750,410)
Administrative expenses
Research and development (265,192) (330,587)
Other administrative expenses (3,408,230) (2,868,375)
(3,673,422) (3,198,962)
Operating loss on ordinary 
activities before interest and taxation 3 (351,503) (2,384,065)
Bank interest receivable 79,219 177,260
Interest payable (122,155) (64,370)
5 (42,936) 112,890
Loss before tax (394,439) (2,271,175)
Taxation 6 53,568 (126,675)
Retained loss for the year (340,871) (2,397,850)
Loss per share
Basic 8 (1.7)p (12.3p)
Diluted 8 (1.7)p (12.3p)
Group Statement of Total Recognised Gains and Losses
There are no recognised gains or losses other than the loss for the year ended 30 September 2005 of £340,871 and the loss of
£2,397,850 in the year ended 30 September 2004.
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 21 Cobra Biomanufacturing Plc 22
Balance Sheets
at 30 September 2005
Group Company
Notes 2005 2004 2005 2004
£ £ £ £
Fixed assets
Tangible assets 9 7,495,274 7,168,024 - -
Investments 10 - - 600,000 600,000
7,495,274 7,168,024 600,000 600,000
Current assets
Stocks and work in progress 11 231,652 275,504 - -
Debtors 12 2,013,909 1,591,730 1,679,393 69,797
Cash at bank and in hand 3,035,884 3,158,573 2,668,205 3,024,801
5,281,445 5,025,807 4,347,598 3,094,598
Creditors: amounts falling due within one year 13 (2,781,400) (2,203,797) (412,185) (435,049)
Net current assets 2,500,045 2,822,010 3,935,413 2,659,549
Total assets less current liabilities 9,995,319 9,990,034 4,535,413 3,259,549
Creditors: amounts falling due after more
than one year 14 (2,183,033) (1,838,877) (1,280,000) -
Net assets 7,812,286 8,151,157 3,255,413 3,259,549
Capital and reserves
Called up share capital 18 & 19 1,950,727 1,950,000 1,950,727 1,950,000
Share premium 19 9,633,766 9,632,493 9,633,766 9,632,493
Merger reserve 19 29,728,872 29,728,872 - -
Profit and loss account 19 (33,501,079) (33,160,208) (8,329,080) (8,322,944)
Equity shareholders’ funds 7,812,286 8,151,157 3,255,413 3,259,549
The financial statements on pages 21 to 36 were approved by the Board of Directors on 10 January 2006 and were signed on
its behalf by:
David Thatcher Peter Coleman
Chief Executive Finance Director
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 22 Cobra Biomanufacturing Plc 23
Group Statement of Cash Flows 
for the Year Ended 30 September 2005
2005 2004
Notes £ £
Net cash inflow/(outflow) from operating activities 20 571,662 (2,014,490)
Returns on investment and servicing of finance
Interest received 79,219 177,260
Interest on bank loans (45,331) (11,441)
Interest element of finance lease rental payments (76,824) (52,929)
(42,936) 112,890
Taxation
R&D tax credit 69,189 323,278
Capital expenditure
Payments to acquire tangible fixed assets (786,461) (3,179,500)
Net cash outflow before the management of
liquid resources and financing (188,546) (4,757,822)
Management of liquid resources
Decrease in short-term deposits 352,077 3,765,226
Financing
Issue of ordinary shares 2,000 -
Repayment of long-term loans (1,067,639) (19,861)
New long-term loans 1,280,000 -
Repayment of capital element of finance leases (341,231) (451,661)
Lease finance acquired 192,727 1,126,166
65,857 654,644
Increase/(decrease) in cash 229,388 (337,952)
Reconciliation of Net Cash Flow to Movement in Net Funds
Notes 2005 2004
£ £
Increase/(decrease) in cash 229,388 (337,952)
Cash (inflow)/outflow from loans (212,361) 19,861
Repayment of capital element of finance leases 341,231 451,661
Lease finance acquired (376,884) (1,126,166)
Cash inflow from short-term deposits (352,077) (3,765,226)
Movement in net funds during the period (370,703) (4,757,822)
Net funds at the start of the year 917,112 5,674,934
Net funds at the end of the year 20 546,409 917,112
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 23 Cobra Biomanufacturing Plc 24
Notes to the Financial Statements 
for the Year Ended 30 September 2005
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 up to 30 September 2005. 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. 
Tangible assets and 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 & buildings between 15 and 25 years
Plant and laboratory equipment between 6.67 and 10 years
Short leasehold building improvements 6.67 years
Office equipment 4 years
Motor vehicles 3 years
The cost of tangible fixed assets includes directly attributable finance costs, calculated on a day to day basis, on expenditure
incurred during construction and modification. 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.
Assets under construction include the costs directly attributable to bringing the asset into working condition for its intended
use.
Government Grants
Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over
the expected useful lives of the relevant assets by equal instalments.
Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate. 
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 includes inter alia all internal
and external costs incurred in patenting, external studies and consultancy.
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 24 Cobra Biomanufacturing Plc 25
Notes to the Financial Statements 
for the Year Ended 30 September 2005
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 eligible employees. Contributions are charged to the profit and
loss account on an accruals basis.
Derivatives and other financial instruments
The Group uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The
Group does not hold or issue derivative financial instruments for speculative purposes. The Group also uses interest rate swaps
to adjust interest rate exposures.
Forward foreign currency contracts
The criteria for forward foreign currency contracts are:
 The instrument must be related to a firm foreign currency commitment;
 It must involve the same currency as the hedged item; and
 It must reduce the risk of foreign currency exchange rate movements on the Group’s operation.
1 ACCOUNTING POLICIES (continued)
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 25 Cobra Biomanufacturing Plc 26
Notes to the Financial Statements 
for the Year Ended 30 September 2005
2 TURNOVER
The Group operates in one area of activity, that of contract manufacture.
All turnover originates from the UK. The geographical analysis of turnover by destination is as follows:
2005 2004
£ £
United Kingdom 1,284,832 1,992,637
North America 6,138,082 1,096,887
Europe 209,976 262,990
Rest of the World 87,686 163,837
7,720,576 3,516,351
3 OPERATING LOSS 
2005 2004
This is stated after charging: £ £
Auditors’ remuneration - audit services 30,000 25,250
- non audit services 18,741 20,986
Depreciation of owned assets 517,839 278,505
Depreciation of assets held under finance leases 193,302 113,441
Operating leases - hire of other assets 24,057 7,773
- rental of premises 214,169 171,295
Government grants (54,389) (24,540)
£15,000 (2004: £12,625) of audit fees and £7,548 (2004: £7,816) of non audit fees relates to the Company. The non audit fees
were primarily for taxation and accountancy services.
4 STAFF COSTS
2005 2004
£ £
Wages and salaries 3,172,547 2,882,159
Social security costs 310,160 277,466
Other pension costs 152,338 134,374
3,635,045 3,293,999
The average monthly number of employees during the year was made up as follows:
2005 2004
No. No.
Manufacturing 61 58
Selling, marketing and distribution 8 6
Research and development 3 3
Administration 22 21
94 88
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 26 Cobra Biomanufacturing Plc 27
Notes to the Financial Statements 
for the Year Ended 30 September 2005
Directors’ remuneration
2005 2004
£ £
Aggregate emoluments 481,676 550,436
Company contributions to defined contributions pension scheme 38,139 33,048
519,815 583,484
Remuneration to highest paid director
2005 2004
£ £
Aggregate emoluments 192,436 221,168
Company contributions to defined contributions pension scheme 16,360 12,067
208,796 233,235
5 INTEREST RECEIVABLE AND PAYABLE
2005 2004
£ £
Interest receivable
Bank interest receivable 79,219 177,260
Interest payable
Interest payable on bank loans 45,331 11,441
Interest payable on finance leases 76,824 52,929
122,155 64,370
4 STAFF COSTS (continued)
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 27 Cobra Biomanufacturing Plc 28
Notes to the Financial Statements 
for the Year Ended 30 September 2005
6 TAXATION
The Group is entitled to Research and Development tax relief under Schedule 20 of the Finance Act 2000, in respect of the years
ended 30 September 2005 and 2004.
2005 2004
£ £
Taxation on loss on ordinary activities
Current tax
Tax credit in relation to R&D claim (49,290) (64,910)
Adjustments in respect of previous periods (4,278) (33,415)
Total current tax (53,568) (98,325)
Deferred tax
Origination and reversal of timing differences - 225,000
Total deferred tax - 225,000
Total tax (53,568) 126,675
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:
2005 2004
£ £
Loss on ordinary activities before tax (394,439) (2,271,175)
Loss on ordinary activities multiplied by the standard rate of
Corporation Tax in the UK of 30% (2004: 30%) (118,332) (681,353)
Effect of
Disallowed expenses and non taxable income 39,407 (30,540)
Depreciation (not in excess)/in excess of capital allowances (21,643) 108,483
Other timing differences 3,184 4,985
Adjustment in respect of previous periods (4,278) (33,415)
Tax losses 4,275 476,718
Difference in R&D tax rate 43,819 56,797
Current tax charge for the period (53,568) (98,325)
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 £14,234,000.
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 28 Cobra Biomanufacturing Plc 29
Notes to the Financial Statements 
for the Year Ended 30 September 2005
Deferred taxation
The deferred tax recognised and not recognised is as follows:
Group Not Not
Recognised Recognised Recognised Recognised
2005 2005 2004 2004
££ ££
Accelerated capital allowances - (84,243) - (105,886)
Other timing differences - (8,169) - (4,985)
Tax losses - (4,274,275) - (4,270,000)
- (4,366,687) - (4,380,871)
Company Not Not
Recognised Recognised Recognised Recognised
2005 2005 2004 2004
££ ££
Accelerated capital allowances -- --
Other timing differences - (224) --
Tax losses - (4,016) --
- (4,240) --
The deferred tax asset has not been provided for as it is uncertain whether sufficient profit will arise in the foreseeable future
to enable the asset to reverse.
7 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 2005 was £6,136 (2004:
£8,315,589 loss).
8 LOSS PER ORDINARY SHARE
The calculation of basic loss per ordinary share is based on losses of £340,871 (2004: £2,397,850 loss) and on 19,504,264 ordinary
shares (2004: 19,500,000) being the weighted average number of shares in issue during the year.
The loss for the period and the weighted average number of ordinary shares for calculating the diluted loss per share for the
year ended 30 September 2005 are identical to those used for the basic loss per share. This is because the outstanding share
options and warrants would have the effect of reducing the loss per ordinary share and would therefore not be dilutive under
the terms of Financial Reporting Standard (FRS) No 14.
6 TAXATION (continued)
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 29 Cobra Biomanufacturing Plc 30
Notes to the Financial Statements 
for the Year Ended 30 September 2005
9 TANGIBLE FIXED ASSETS
Short
Plant and leasehold Freehold Assets
laboratory Motor Office building land & under
equipment vehicles equipment improvements buildings construction Total
£££££££
Cost
At 1 October 2004 5,346,982 8,036 634,166 1,845,427 3,306,241 - 11,140,852
Additions 686,844 - 53,403 - 41,835 256,309 1,038,391
At 30 September 2005 6,033,826 8,036 687,569 1,845,427 3,348,076 256,309 12,179,243
Depreciation
At 1 October 2004 1,643,667 887 452,511 1,845,427 30,336 - 3,972,828
Charge for the year 450,557 2,679 75,415 - 182,490 - 711,141
At 30 September 2005 2,094,224 3,566 527,926 1,845,427 212,826 - 4,683,969
Net book value 
At 30 September 2005 3,939,602 4,470 159,643 - 3,135,250 256,309 7,495,274
At 30 September 2004 3,703,315 7,149 181,655 - 3,275,905 - 7,168,024
The net book value of tangible fixed assets includes £1,340,186 (2004: £1,508,243) in respect of assets held under finance leases.
The assets under finance leases consist of plant, laboratory and office equipment and motor vehicles. 
The cost of tangible assets includes £70,015 (2004: £68,312) of capitalised interest relating to the property mortgage loan taken
out to purchase freehold land and buildings.
10 INVESTMENTS
Company £
At 1 October 2004 and at 30 September 2005 600,000
The investments are in the Company’s wholly owned subsidiary, Cobra Biologics Limited, a company incorporated in England &
Wales and whose principal activity is the manufacture of protein, virus and DNA based pharmaceuticals. 
11 STOCKS AND WORK IN PROGRESS
Group Company
2005 2004 2005 2004
£ £ £ £
Raw materials & consumables 231,652 254,792 - -
Work in progress - 20,712 - -
231,652 275,504 - -
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 30 Cobra Biomanufacturing Plc 31
Notes to the Financial Statements 
for the Year Ended 30 September 2005
12 DEBTORS
Group Company
2005 2004 2005 2004
£ £ £ £
Trade debtors 1,432,069 1,122,667 - -
Amounts owed by group undertakings - - 1,659,038 -
Corporation tax 49,290 64,910 - -
Other debtors 111,589 6,065 14,030 28,046
Prepayments 420,961 398,088 6,325 41,751
2,013,909 1,591,730 1,679,393 69,797
13 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group Company
2005 2004 2005 2004
£ £ £ £
Current instalments on loans - 78,133 - -
Obligations under finance leases 306,442 324,451 - -
Trade creditors 1,336,649 1,166,797 135,297 336,073
Other taxation and social security costs 89,480 109,254 34,606 38,305
Deferred income 356,010 227,014 - -
Other creditors 103,899 16,616 74,411 -
Accruals 588,920 281,532 167,871 60,671
2,781,400 2,203,797 412,185 435,049
14 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group Company
2005 2004 2005 2004
£ £ £ £
Loans 1,280,000 989,506 1,280,000 -
Obligations under finance leases 903,033 849,371 - -
2,183,033 1,838,877 1,280,000 -
15 LOANS
Group Company
2005 2004 2005 2004
£ £ £ £
Amounts falling due:
In one year or less or on demand - 78,133 - -
In more than one year but less than two years 41,070 83,283 41,070 -
In more than two years but less than five years 295,704 284,106 295,704 -
In more than five years 943,226 622,117 943,226 -
1,280,000 1,067,639 1,280,000 -
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 31 Cobra Biomanufacturing Plc 32
Notes to the Financial Statements 
for the Year Ended 30 September 2005
The long-term loan is a new mortgage facility, which in May 2005 replaced the existing £1.1m 11 year mortgage facility with
HSBC Bank Plc, secured against freehold land and buildings. The loan is repayable in monthly instalments, over a thirteen-year
period commencing May 2007. The Group utilises the availability of an ‘off-set’ arrangement with the bank, which effectively
means the Group currently pays a fixed rate of 1.5% over the National Westminster Bank Plc’s base rate on the outstanding
mortgage balance.
16 OBLIGATIONS UNDER FINANCE LEASES
Group Company
2005 2004 2005 2004
£ £ £ £
Payable within one year 379,151 393,682 - -
Payable between one and two years 363,846 266,033 - -
Payable between two and five years 626,957 688,606 - -
1,369,954 1,348,321 - -
Less: finance charges allocated to future periods (160,479) (174,499) - -
1,209,475 1,173,822 - -
Finance leases and hire purchase contracts are analysed as follows:
Group Company
2005 2004 2005 2004
£ £ £ £
Current obligations 306,442 324,451 - -
Non-current obligations 903,033 849,371 - -
1,209,475 1,173,822 - -
17 OTHER FINANCIAL COMMITMENTS
At 30 September 2005 the Group had annual commitments under non-cancellable operating leases as follows:
Land & buildings Other
2005 2004 2005 2004
£ £ £ £
Expiring within one year 47,000 61,109 3,148 -
Expiring between one and two years - - 9,206 3,148
Expiring between two and five years - - 17,964 9,586
Expiring in greater than five years 154,450 185,750 - 510
201,450 246,859 30,318 13,244
The Company has no amounts due under non-cancellable operating leases.
15 LOANS (continued)
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 32 Cobra Biomanufacturing Plc 33
Notes to the Financial Statements 
for the Year Ended 30 September 2005
18 CALLED UP SHARE CAPITAL
Group and Company No. £
Authorised
At 1 October 2004 and at 30 September 2005 27,000,000 2,700,000
Group and Company
No. £
Allotted, called up and fully paid
At 30 September 2004 19,500,000 1,950,000
Allotted in the year 7,273 727
At 30 September 2005 19,507,273 1,950,727
On 7 June 2002 the Company entered into a placing agreement with Collins Stewart Limited, as disclosed in the admission
document for the Company’s admission to the Alternative Investment Market, 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 13 June
2007.
At 30 September 2005 the Company had 1,864,790 unissued ordinary shares (2004: 1,736,910) under the unapproved share
option scheme, details of which are included below: 
At At 30 Date from
1 October Granted Exercised Cancelled September Exercise which Expiry
2004 in year in year or expired 2005 price exercisable date
No No No No No pence
Issue 13 June 2002 690,540 - - (7,650) 682,890 100.0 14.06.05 12.06.12
Issue 7 July 2003 607,797 - - - 607,797 96.5 08.07.06 06.07.13
Issue 7 Jan 2004 119,649 - - (24,028) 95,621 147.5 08.01.07 06.01.14
Issue 12 July 2004 318,924 - (7,273) - 311,651 27.5 13.07.07 11.07.14
Issue 21 Feb 2005 - 140,874 - - 140,874 50.0 22.02.08 20.02.15
Issue 4 Aug 2005 - 20,000 - - 20,000 51.5 05.08.08 03.08.15
Issue 10 Aug 2005 - 5,957 - - 5,957 53.0 11.08.08 09.08.15
1,736,910 166,831 (7,273) (31,678) 1,864,790
All of the share options were granted at either the closing mid market price on the last dealing day before grant or the
average closing mid market price on the last three dealing days before grant.
19 RECONCILIATION OF SHAREHOLDERS’ FUNDS AND MOVEMENT ON RESERVES
Group
Share Share Merger Profit &
Capital Premium reserve loss account Total
£££££
As at 1 October 2004 1,950,000 9,632,493 29,728,872 (33,160,208) 8,151,157
Share issue 727 1,273 - - 2,000
Loss for the year - - - (340,871) (340,871)
At 30 September 2005 1,950,727 9,633,766 29,728,872 (33,501,079) 7,812,286
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 33 Cobra Biomanufacturing Plc 34
Notes to the Financial Statements 
for the Year Ended 30 September 2005
Company Share Share Profit & 
Capital Premium loss account Total
££££
As at 1 October 2004 1,950,000 9,632,493 (8,322,944) 3,259,549
Share issue 727 1,273 - 2,000
Loss for the year - - (6,136) (6,136)
At 30 September 2005 1,950,727 9,633,766 (8,329,080) 3,255,413
20 NOTES TO THE STATEMENT OF CASH FLOWS
(a) Reconciliation of operating loss to net cash flow from operating activities
2005 2004
£ £
Operating loss (351,503) (2,384,065)
Depreciation of tangible fixed assets 711,141 391,946
Decrease/(increase) in stock 43,852 (68,585)
(Increase)/decrease in debtors (417,548) 347,034
Increase/(decrease) in creditors 585,720 (300,820)
Net cash inflow/(outflow) from operating activities 571,662 (2,014,490)
(b) Analysis of net funds
Other non-cash 
2004 Cash Flow movements 2005
£££ £
Cash at bank and in hand 145,835 229,388 - 375,223
Short-term deposits* 3,012,738 (352,077) - 2,660,661
3,158,573 (122,689) - 3,035,884
Bank loan (1,067,639) (212,361) - (1,280,000)
Finance leases (1,173,822) 148,504 (184,157) (1,209,475)
Net funds 917,112 (186,546) (184,157) 546,409
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.
19 RECONCILIATION OF SHAREHOLDERS’ FUNDS AND MOVEMENT ON RESERVES (continued)
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 34 Cobra Biomanufacturing Plc 35
Notes to the Financial Statements 
for the Year Ended 30 September 2005
21 FINANCIAL INSTRUMENTS
An explanation of the Group’s objectives, policies and strategies for the role of derivatives and other financial instruments can
be found on page 7. It is not the Group’s policy to enter into financial derivatives for speculative or trading purposes. 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 2005 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
other 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 2005 is as follows:
Financial assets on which Floating rate Total
no interest is earned financial assets
£££
2005
Sterling 374,662 2,658,913 3,033,575
US Dollar 561 1,748 2,309
375,223 2,660,661 3,035,884
2004
Sterling 75,643 3,012,738 3,088,381
US Dollar 70,192 - 70,192
145,835 3,012,738 3,158,573
Floating rate financial assets comprise cash deposits on money market deposit at call and interest is received either at the Bank
of Scotland’s base rate or at the National Westminster Bank Plc’s money market rate.
Interest rate risk profile of financial liabilities
The interest rate profile of the financial liabilities of the Group as at 30 September 2005 is as follows:
Fixed rate Floating rate Total
financial financial
liabilities liabilities
£££
2005
Sterling 1,209,475 1,280,000 2,489,475
2004
Sterling 1,173,822 1,067,639 2,241,461
The weighted average interest rate on fixed rate financial liabilities at 30 September 2005 was 7.0% (2004: 7.0%).
The weighted average period to maturity of fixed rate financial liabilities at 30 September 2005 was 53 months (2004: 51
months).
The fixed rate financial liabilities were confined to obligations under finance leases. Floating rate financial instruments
comprise a mortgage facility with National Westminster Bank Plc with an interest rate of 1.50% over the bank’s base rate.
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 35 Cobra Biomanufacturing Plc 36
Notes to the Financial Statements 
for the Year Ended 30 September 2005
Maturity of financial liabilities  
The maturity profile of the Group’s financial liabilities as at 30 September 2005 was as follows: 
2005 2004
£ £
Payable within one year 306,442 402,584
Payable between one and two years 353,560 299,759
Payable between two and five years 886,247 917,001
Payable in more than five years 943,226 622,117
2,489,475 2,241,461
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
£££
2005
Sterling 799,524 52,122 851,646
2004
Sterling 352,035 8,928 360,963
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 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 £137,000 (2004: £120,280). Contributions totalling £19,179 (2004: £16,616) were payable at the year
end.
23 RELATED PARTY TRANSACTIONS
The Group made sales of £13,950 (2004: £Nil) to Evolutec Group Plc. David Bloxham was a director of both Evolutec Group Plc
and the Company throughout the year. At the balance sheet date the amount due from Evolutec Group Plc was £Nil (2004:
£Nil).
21 FINANCIAL INSTRUMENTS (continued)
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Notice of Annual General Meeting
Notice is given that the Annual General Meeting of Cobra Biomanufacturing Plc will be held at the offices of Buchanan
Communications Limited, 45 Moorfields, London, EC2Y 9AE on 6 April 2006 at 11:00am.
To transact the following business:
Ordinary Business
1. To receive the accounts for the year ended 30 September 2005 and the report of the directors and the auditors thereon;
2. To re-appoint as a director, Peter Coleman,
3. To re-appoint as a director, David Bloxham, 
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 and 7 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 £749,272 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, 2 July 2007) 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 2 July 2007), 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.
7. That the Cobra Biomanufacturing Plc 2006 Long Term Incentive Plan the principal terms of which are summarised in
Appendix 1 of the circular to shareholders dated 31 January 2006 and the Cobra Manufacturing Plc 2006 Employee Benefit
Trust the principal terms of which are summarised in Appendix 2 of the circular to shareholders dated 31 January 2006 and
copies of which have been produced to the meeting and for the purposes of identification, signed by the Chairman, be and
hereby are approved and the directors be and are hereby authorised to do all such acts or things as may be necessary or
desirable to implement the same.
By order of the Board Registered in England No. 4442927 
Registered Office
Stephenson Building
The Science Park
Matthew Baker Keele, Staffordshire
Company Secretary ST5 5SP
10 January 2006
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 37 Cobra Biomanufacturing Plc 38
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, copies of the directors’ service contracts, the draft rules of the
Cobra Biomanufacturing Plc 2006 Long Term Incentive Plan and the trust deed for the Cobra Biomanufacturing Plc 2006
Long Term Incentive Plan will be available for inspection at the registered office of the Company and at the offices of
Eversheds LLP, Senator House, 85 Queen Victoria Street, London, EC4V 4JL 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 Report of the Directors’ on pages 12.
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 4 April 2006 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.
5. In order to be valid any form of proxy and power of attorney or other authority under which it is signed, or a notarially
certified or office company of such power of attorney, must reach the Company’s registrars Capita Registrars not less than
48 hours before the time of the meeting or of any adjournment of the meeting.
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Shareholder Information
Financial Information
Interim results for the six months to 31 March in June.
Final results for the year to 30 September in January.
Quarterly trading updates April and October.
Annual General Meeting
The Annual General Meeting will be held on 6 April 2005 at 11:00 am at the offices of Buchanan Communications Limited,
45 Moorfields, London, EC2Y 9AE. The notice of the meeting is set out on pages 37 and 38. 
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 and manufacturing activities. It also includes the 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.
Investor Relations Services
The Company operates an Investor Relations Mailing List and Email Alert Service for investors and other interested parties. 
Copies of announcements made during the year as well as the annual and interim reports are sent to current registered
shareholders. However, if you would like to receive this information regardless of your current shareholding, you can register
for either one of the above services by writing to Investor Relations, Cobra Biomanufacturing Plc, Stephenson Building, The
Science Park, Keele, Staffordshire, ST5 5SP.
Alternatively, you can register to receive updates electronically via the website under
www.cobrabio.com/investors/investor_email_alert.htm.
Data Protection Policy
We will comply with the requirements of all Data Protection legislation in force in England and Wales from time to time. In
particular, you may request a copy of any personal data held by us about you upon written request. Please note that we reserve
the right to charge the current statutory fee for providing such information. 
We do not use or distribute the information provided by you to our Investor Relations Mailing List or Email Alert Service, for
any purpose other than the provision to you of up to date company information. We do not sell databases or personal
information to third parties.
You can request to be removed from the mailing lists at any time, by writing to the registered office or via email.
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 39 Cobra Biomanufacturing Plc 40
Directors, Registered Office and Advisors
Directors
Geoffrey Peter Fothergill        (Executive 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
Eversheds LLP
Eversheds House
70 Great Bridgewater Street
Manchester M1 5ES
Auditors 
Ernst & Young LLP
100 Barbirolli Square
Manchester M2 3EY
Bankers
National Westminster Bank Plc
34 High Street
Nantwich
Cheshire CW5 5AZ
www.natwest.com/corporate
Bank of Scotland
600 Gorgie Road 
Edinburgh
EH11 3XP
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
+44 (0)870 162 3100
www.capitaregistrars.com
Registered Office
Stephenson Building
The Science Park
Keele
Staffordshire ST5 5SP
+44 (0)1782 714 181
Registered in England No: 4442927 
60011 Cobra Report & Accs 2005  27/1/06  5:19 pm  Page 40 Cobra Biomanufacturing Plc 41
Glossary of Terms
Biopharmaceuticals – medicines where the active principal
cannot be chemically synthesised and comprise either
recombinant DNA, Protein or Virus.
Cell line – live cells as medicinal products.
Cellular products/manufacture – medicines (manufacture of
medicines) where the active ingredients are live cells.
Cobra – Cobra Biomanufacturing Plc and its wholly owned
subsidiary Cobra Biologics Limited (“The Group”).
DNA – Deoxyribonucleic Acid, a molecule that encodes
genetic information.
cGMP – 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 (“MHRA”). 
Mammalian protein products – proteins, produced and
purified from a mammalian cell culture process.
Microbial – consisting of, or utilising micro-organisms.
Microbial protein products – proteins, produced and purified
from bacteria that have been grown in a microbial
fermentation process.
ORT® – Operator Repressor Titration, a host vector system
that avoids the use of antibiotics and antibiotic resistant
genes during biological manufacture.
ORT-VAC – derived using ORT® technology, strains of
attenuated bacteria bearing high copy number plasmids for
use as live vaccines.
Plasmid DNA – 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.
Qualified Person or QP – The quality assurance professional
for medicines defined by British Law, based upon European
Union directives. For clinical trial materials the QP ensures
that every batch released to the clinic complies with its
specification and has been made according to current cGMP.
Medicines produced outside the EU can be imported and, if
assessed as suitable by the QP, be used for an approved EU
clinical trial.
Virus products/manufacture – medicines (the manufacture of
medicines) where the active ingredient is a recombinant
virus engineered to deliver DNA encoding a therapeutic
gene.
60011 Cobra cover A3  27/1/06  9:11 am  Page c3 Cobra Biomanufacturing Plc
Registered Office
Stephenson Building
The Science Park
Keele 
Staffordshire
ST5 5SP
UK
Tel: +44(0) 1782 714181
Fax: +44(0) 1782 710485
www.cobrabio.com
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