Expertise
Experience
Excellence
Cobra Biomanufacturing Plc
Interim Report 2008
for the half year ended 31 March 2008 www.cobrabio.com
Dedicated to
Contract Manufacturing
Annual Report and Accounts 2008
for the year ended 30 September Contents
Page
Cobra Overview 1
Operational Highlights & Financial Summary  2
Chairman’s Statement 3
Chief Executive’s Statement 4
Financial & Business Review 5-8
Board of Directors 9
Report of the Directors 10-13
Corporate Governance Statement 14-15
Report on Directors’ Remuneration 16-19
Independent Auditors’ Report 20-21
Group Income Statement 22
Balance Sheets 23
Cash Flow Statements 24
Statements of Changes in Equity 25
Notes to the Financial Statements 26-49
Notice of Annual General Meeting 50-51
Shareholder Information 52
Directors and Advisors 53
Glossary of Terms 54 Cobra Biomanufacturing Plc 1
Cobra Overview
Proteins are essential constituents of living
organisms.  Proteins such as enzymes, structural
constituents of cells and components of the immune
system are used as medicines and such products are
under development by our customers to combat a
number of critical and growing diseases such as cancer
and infectious diseases including malaria and
meningitis.
DNA (Deoxyribonucleic acid) the physical
carrier of genetic information in all living cells, is being
used in two main medical applications, gene therapy
and vaccines. The focus for gene therapy has been in a
number of genetic disorders and diseases such as, cancer
and cardiovascular disease. Potentially, DNA vaccines
could provide protection against the big killer diseases
including cancer, but also the infectious diseases such as
HIV, herpes and hepatitis. 
Viruses have a natural mechanism for
entering living cells. By taking advantage of this
property, attenuated and genetically modified viruses
may be exploited as medicines.  Our customers are
evolving revolutionary products capable of combating
devastating diseases such as genetic disorders like
Parkinson’s and cancer for which there is an unmet
clinical need.
Cells or micro organisms have evolved ways
of entering the human body and cause infectious
diseases such as food poisoning.  Genetic engineering
can be used to create attenuated strains which do not
cause disease and yet retain the ability to enter the
human body.  Such strains, and in particular bacteria
which can be administered orally, are used as carriers for
the delivery of novel vaccines or therapeutic products.
Cobra and its customers are developing novel products
based on this approach.
At Cobra we work in partnership with our customers adding significant value
to their business through investing our know-how, experience and assets in
accelerating their product development programs.  Our goal is to become a
major force in the manufacture of biopharmaceuticals for the international
pharmaceutical and biotech industry; an independent full service,
manufacturing partner from the clinic through to commercial supply in protein,
virus, plasmid DNA and cell products. Cobra Biomanufacturing Plc 2
6.0
4.0
2.0
0.0
FY 2008 FY 2007
H1 H2
FY 2007 FY 2008
0.0
(1.0)
1.0
(2.0)
(3.0)
H1 H2
(1) Signed contracted order book at 1 October 2008 plus contracted orders
signed from 1 October 2008 to 25 March 2009, excluding unconfirmed
revenue for the existing GenVec, Inc contract
Operational Update
• Satisfactory variation agreement reached with GenVec, Inc to place their
contract on hold until 30 June 2009, as announced in the trading statement
on 23 March 2009
• Secured contracted order book up 17% to £11m
(1)
(18 January 2008: £9.4m)
Financial Summary
Losses reduced in the second half of the year to £1m
compared with the first half (H1 2008: £2.3m loss) to give
a full year loss after tax of £3.3m (2007: £1.8m loss)
Revenue up 60% in the second half of the financial
year to £4.3m compared with the first half (H1 2008:
£2.7m) to give full year revenue of £7m (2007: £9.2m) Cobra Biomanufacturing Plc 3
Chairman’s Statement
(1) Signed contracted order book at 1 October 2008 plus contracted orders
signed from 1 October 2008 to 25 March 2009, excluding unconfirmed
revenue for the existing GenVec, Inc contract
Financial Summary 2008
The financial results for 2008 fell into two distinct phases.  The
first half year saw a continuation of the difficult trading
encountered in the previous six months with revenue of only
£2.7m (H1 2007: £5.3m); However, the second half showed the
beginnings of a recovery with revenues of £4.3m (H2 2007:
£3.9m); and full year revenue of £7.0m (2007: £9.2m). The loss
after tax was £3.3m (2007: £1.8m). 
In response to the difficult trading environment the Group
has maintained a rigorous control of costs and cash. This
included a headcount reduction, recruitment delays and a
senior management restructuring which along with the
introduction of cross functional training to achieve a more
flexible multi-tasking workforce capability, will result in
significant annualised cost savings and increased efficiency as
we enter the new financial year. The Group also refocused its
marketing effort which alongside the recent strengthening of
both the US Dollar and the Euro has contributed to a secured
contracted order book of £11m
(1)
, 17% higher than the figure
announced in our results this time last year (January 2008:
£9.4m). £7.7m of these orders are scheduled for delivery in
the current financial year which compared with £6m this time
last year; this represents a meaningful turnaround and
ensures that financial stability is being maintained.
Management
On 18 January 2008, we announced the appointment of
Simon Saxby as Chief Operating Officer and at the same time
David Thatcher stepped down as Chief Executive, to become
a Non Executive Director of the Group as well as acting as a
consultant for Cobra Oral Technologies Limited (‘COT’), a
subsidiary focused on our oral vaccines project. These
management changes evolved further during the year with
Simon Saxby then stepping up to become Chief Executive in
June 2008 as I stepped down to become Non Executive
Chairman later in the year.
Subsequently David Thatcher retired as a Non Executive
Director on 17 January 2009 and the other Board Directors
wish to acknowledge his ongoing contribution to the business
not only over this last 12 months, with the evolution of COT
which pending results from on going studies that should be
available in the first half of the calendar year 2009, may have
potential value, but also for the growth and development of
the contract manufacturing business started in 1998.
Placing
In June 2008 we were able to raise £1m (net of expenses)
through a placing of shares with existing large shareholders
to provide funds for working capital and essential capital
expenditure. The Directors would like to thank once again
both our major institutional and private investors for their
continued support. The placing was approved at the EGM on
30 May 2008 and resulted in Mr and Mrs Dixon becoming our
largest shareholders with 43.9% of the ordinary share capital.
Outlook
There continues to be global economic uncertainty affecting
all markets, including those for biopharmaceuticals,
exemplified by the contract variation included in the
operational update.  However, our expertise gives Cobra a
competitive advantage which has resulted in a secured
contracted order book of £11m
(1)
(18 January 2008: £9.4m).
We will continue to proactively control our costs and
maximise revenue and cashflow.
Peter Fothergill
Non Executive Chairman
25 March 2009 Cobra Biomanufacturing Plc 4
Chief Executive’s Statement
Contracted Order Book
Cobra has made significant progress this year, despite operating
in a very competitive market and a tough financial climate. Our
track record and reputation in the market resulted in 12 new
customers this year, in addition to winning repeat business from
our existing customers to increase the secured contracted order
book by 17% to £11m
(1)
(18 January 2008 £9.4m), £7.7m of
which is scheduled for the current financial year (18 January
2008: £6.0m). 
The contracted order book includes the payments that we will
receive under the variation agreed with GenVec, Inc to place
their contract on hold until 30 June 2009, as announced in the
trading statement on 23 March 2009, but excludes any
remaining revenue from the existing contract until we get
confirmation from the customer that they wish to either
continue or terminate. 
Nothwithstanding, the secured order book now has a broader
base of both European and North American clients than in
previous years and reflects the strength of Cobra’s reputation in
the biopharmaceutical contract manufacturing market and
confirms the potential for further growth within the sector. 
Management Focus
During the year we focused upon keeping costs to a minimum,
maximising working capital and improving the Group’s
operating efficiencies. 
We are also looking into ways of expanding Cobra’s capacity for
the manufacture of mammalian cell secreted proteins which is
the biggest sector of the market, as well as developing our
strength in the production of viral therapeutic products. 
We will continue to target other potential customers requiring
long term manufacturing agreements for viral based products
to reduce our reliance on short term supply contracts for clinical
material and thereby introduce more revenue predictability to
the business.
Revenue
The shape of the business continued to progress through 2008
with an increase in the number of contracts from European
customers including the UK and Cobra’s first major success in
Asia with the signing of two contracts with ViroMed Co Limited
in South Korea.
Revenue from our North American customers was still
predominant in 2008, but fell to £3.5m (2007: £6.0m) or 50% of
the total (2007: 65%) as our contract composition changed in
the year. Revenue from European based customers (including
the UK) provided £2.9m (2007: £3.0m), 41% of the total (2007:
33%) and revenue from the Rest of the World grew to £0.6m
(2007: £0.2m), or 9% of the total (2007: 2%). The increase in the
global spread of Cobra’s business provides for a more robust
future with less reliance on a single market.
Protein based revenue fell to £2.4m (2007: £4.3m), 34% of the
total (2007: 47%), primarily due to our limited capacity for
bacterial derived proteins. We have however, through a more
focused marketing effort been successful in winning a number
of significant contracts for mammalian cell derived proteins and
this will be reflected in future results. Virus based revenues were
£2.4m (2007: £2.8m), 34% of the total (2007: 30%) maintaining
Cobra’s position as a leading supplier in this market, with the
remaining revenue split between DNA with £1.7m (2007: £1.8m)
and Cell Line work of £0.5m (2007 £0.3m).
Growth of the Business
We have identified that the production of mammalian cell
secreted proteins is an area of the business that will provide
significant growth opportunities as demonstrated by the
number of contracts signed in 2008.  These products lend
themselves to manufacture using new disposable technologies,
which will reduce costs, increase our operating efficiency and
increase our capacity. 
In addition, Cobra is one of the few contract manufacturing
organisations capable of manufacturing commercial quantities
of regulatory compliant viral based products.
As part of the geographical expansion of the business and in line
with the opportunities in Asia, we have appointed an agent in
Japan to enable Cobra to focus significant effort on the rapidly
growing Japanese biologics market at a low cost entry level.
Outlook
I would like to thank all the staff at Cobra for their hard work,
expertise and dedication over the past year, all of which has
resulted in another record order book. A new CEO invariably
means change, and I would also like to thank the Board, the
management team and all the staff for their support and active
involvement in introducing changes to enable Cobra to
compete efficiently in the difficult financial climate faced by the
industry as a whole.  We will continue to fight for long term
development and manufacturing relationships and strategic
partnerships that will provide more predictable revenues and
opportunities to expand the business.
Simon Saxby
Chief Executive
25 March 2009 Cobra Biomanufacturing Plc 5
Financial & Business Review
Financial Review
Income Statement
Revenue for the year fell 24% to £7m (2007: £9.2m), which
resulted in a decline in the gross margin to 33% (2007: 42%)
as the Group was unable to maximise the coverage of its direct
manufacturing costs, a high proportion of which are fixed and
essential to maintain our cGMP (‘Good Manufacturing
Practice’) and quality standards. Research and development
expenditure in the year was £0.5m (2007: £0.6m) as we utilised
spare capacity on the development of new, more efficient
manufacturing systems and the development of our oral
vaccine platform technology, ORT-VAC. Sales, marketing and
distribution costs of £1.0m (2007: £1.1m) and administrative
expenses including share based payments of £3.8m (2007:
£3.9m) both fell in the year as we controlled our cost base.
Overall there was a loss before tax of £3.4m (2007: £1.9m loss)
and after the provision for the R&D tax credit, a loss after tax
of £3.3m (2007: £1.8m loss).
Balance Sheet
Cobra invested a further £0.7m in plant and equipment in the
year (2007: £1.0m), lower than the previous year as we
controlled expenditure. However this investment was
essential to support our order book and to maintain our two
facilities to cGMP and MHRA compliance. 
Defered income more than doubled in the year to £1.1m
(2007: £0.5m), reflecting the strength of the secured order
book. Inventories, including work in progress fell to £0.3m
(2007: £0.4m), however due to the operating losses incurred
and capital investment required, which were offset by net
financing inflow of £0.6m (2007: £0.2m inflow), cash and cash
equivalents closed at £0.3m (2007: £1.3m).  
Non current liabilities fell in the year to £2.5m (2007: £2.8m)
and they comprise of a bank loan with National Westminster
Bank Plc of £1.8m (2007: £1.9m), secured against the freehold
buildings in Oxford and a £0.3m cash deposit, and finance lease
obligations of £0.7m (2007: £0.9m).The bank loan is repayable
over a 13 year period which commenced November 2007 and
the finance leases are repayable between 2 and 5 years.
Cash Flow
Operating cash outflow for the year was £1.3m (2007: £0.9m
outflow) which in addition to capital expenditure of £0.8m
(2007: £1.1m), a share placing of £1m (net of expenses) (2007:
nil), an increase in the overdraft of £0.1m (2007: £0.1m),
finance leases taken out of £0.6m (2007: £0.6m), offset by
finance lease and mortgage repayments of £0.9m (2007:
£0.8m) and combined interest payments of £0.3m (2007:
£0.2m) resulted in closing cash and cash equivalents of £0.3m
(30 September 2007: £1.3m).    
Share Placing
Due to the operating losses incurred in the first half of the
financial year and the capital investment required primarily to
modify the Oxford facility to meet FDA requirements for
commercial virus production, additional funding via a placing
of £1.2m (before expenses) was required in the year. The
Extraordinary General Meeting was held on 30 May 2008 and
all the resolutions were passed, which included a capital
reorganisation (see details below), changes to the Group’s
Articles of Association, the approval of the Takeover Panel’s
requirements and the £1.2m share placing itself.
Capital Reorganisation
In order to proceed with the placing it was necessary to
restructure the Company’s share capital, as the nominal value
of the existing ordinary shares was 10 pence, above the 5
pence placing price, which is not permitted. Therefore the
Group split the existing 10 pence ordinary shares into nine 1
pence deferred shares and one new 1 pence ordinary shares.
The new deferred shares have no rights attached to them, and
the effect of the reorganisation is that shareholders keep the
same number of ordinary shares but at the lower 1 pence
nominal value with identical rights.  
Going Concern
In determining the appropriate basis of preparation of the
financial statements, the Directors are required to consider
whether the Group can continue in operational existence for
the foreseeable future, this being a period of not less than
twelve months from the date of the approval of the financial
statements.
The disclosures in Note 3 on pages 26 and 27 highlight that
there are material uncertainties in providing an accurate
forecast for the Group, notably the difficulty in accurately
forecasting the timings of contract signatures and the
subsequent cash receipts, and the renewal of the existing
overdraft facilities with the bank at the end of August 2009.
This therefore may cast significant doubt about the Group’s
ability to continue as a going concern for the foreseeable
future and as a result it may be unable to realise its assets and
discharge its liabilities in the normal course of business.   Cobra Biomanufacturing Plc 6
Financial & Business Review
Notwithstanding, the Directors have a reasonable expectation
that the Group will be able to operate within its resources and
there will be sufficient funds to enable the Group to meet its
liabilities as they fall due and therefore to continue as a going
concern for the foreseeable future. 
Taxation
At 30 September 2008, the Group had trading tax losses
carried forward of £17.0m (2007: £15m) ensuring that the
Group should not be obliged to pay UK corporation tax for
the foreseeable future on any trading profits. The Group is
also entitled to claim research and development tax relief,
available under Schedule 20 of the Finance Act 2000 in respect
of financial year 2008, which resulted in a credit to the Group
Income Statement of £0.1m (2007: £0.1m). 
Financial Risks
The Board has overall responsibility for the establishment and
oversight of the Group’s risk management framework. Risk
management policies are constantly reviewed, taking into
account changes in market conditions and the Group’s
activities. A formal risk management update is presented to
the Board bi-annually. It is not the Group’s policy to enter into
financial derivatives for speculative or trading purposes and
further information on the financial risks facing the Group
and how the Group manages those risks can be found in note
27 Financial Instruments on pages 44 to 49.
Interest Rate, Liquidity, Credit and Foreign
Currency Risk
Interest rate risk: the Group is exposed to interest rate risk on
funds borrowed at both fixed and floating rates. At the year
end the Group had a mortgage with the National
Westminster Bank Plc (‘Nat West’), with an outstanding
balance of £1.9m at 30 September 2008 (2007: £2.0m). The
Group currently pays a fixed rate of 1.65% over the Nat West’s
sterling base rate on the outstanding mortgage balance. The
Group also has £0.3m overdraft facility which is utilised when
required at a fixed rate currently at 2.95% over their base
rate, and finance leases of £1.4m (2007: £1.5m) which are
fixed rate loans with an average borrowing rate at year end
of 8.7% (2007: 8.0%).   
Liquidity risk: the Group manages liquidity by maintaining
banking facilities, which includes a bank overdraft and
mortgage with Nat West. The Board continuously monitors its
cash flow forecasts, both short and long term and then
measuring those forecasts to actual performance.
Consideration is also given to the maturity profiles of financial
assets and liabilities.
Credit risk: the Group’s credit risk relates to trade receivables,
short term investments and cash and cash equivalents. The
credit risk on liquid funds is limited because the counter
parties are banks with high credit ratings assigned by
international credit rating agencies. The Group has no
significant concentration of credit risk related to receivables,
as the exposure is spread over a number of customers over
different geographical areas. The Group uses publicly
available trading records, web site analysis and press releases
to rate both new and existing customers. 
Foreign currency risk: the Group generated overseas revenue
during the year, primarily from North America and
Continental Europe. The position regarding currency risk is
regularly reviewed and particular attention has been paid to
currency hedging activity given the significant strengthening
in both the US Dollar and the Euro, which has increased the
current secured order book and improved Cobra’s competitive
advantage, but has also in the year incurred an exchange rate
loss of £64k (2007: £38k gain), due to the provision of forward
currency contracts against the Group’s contracted US Dollar
and Euro order book, taken out at a higher previous exchange
rate. Foreign currency risk is partially offset by overseas
expenditure which mainly comprises of the salaries and costs
of the US sales team and mitigated further by the Group’s
specialist skills being relatively price insensitive. 
Business Review
Operations: Cobra Biomanufacturing Plc is primarily an
international provider of manufacturing services for the
global biopharmaceutical industry. The Group operates two
UK based manufacturing facilities, one located in Keele,
Staffordshire and the other in Cowley, Oxfordshire, both of
which trade through the Company’s wholly owned trading
subsidiary Cobra Biologics Limited. The Company’s other
subsidiaries are Cobra Oral Technology Limited whose
principal activity will be to develop the Oral Vaccine platform
technology ORT-VAC, Cobra Biomanufacturing EBT Limited Cobra Biomanufacturing Plc 7
Financial & Business Review
whose principal activity is to act as trustee to the Group’s Long
Term Incentive Plan (LTIP) and Cobra Biomanufacturing LLC
which is currently dormant. 
Markets: of the $32bn
(1)
(2006: $28bn) spent on research and
development by biotechnology research and development
organisations in 2007, 84% or $27bn
(1)
(2006: $24bn) was
spent by North American companies. Therefore, North
America represents the primary market for Cobra’s services.
However there is a significant amount of research and
development expenditure, $5bn
(1)
(2006: $4bn) spent by the
rest of the world, primarily in Europe and Asia. 
It is estimated that the global market for Cobra’s services,
biopharmaceutical contract manufacturing was worth
$2.8bn
(2)
in 2008. With an anticipated annual growth rate of
between 15% and 20% per annum this market is expected to
be worth $4.3bn by 2011. The vast majority of the market is
for protein based manufacturing services, however there is
also an available growing specialised niche market for virus
based manufacturing services and DNA also maintains a
steady demand. Cobra can uniquely provide manufacturing
services for all of these segments in addition to cell based
therapies.    
Sales and marketing: North America is still the main source of
revenue with 50% of the total in 2008 (2007: 65%) achieved
through a US based sales force of 3 sales executives, covering
the major biotechnology hubs of the US. In addition the
Group has a sales executive who covers Europe (including the
UK), a combined territory that generated 41% of revenue in
the year (2007: 33%). The Rest of the World provided a
growing contribution of 9% (2007: 2%) through direct
representation in the Australasian region. The sales team
focus on well funded mid size biotechnology product
companies with a requirement for process development
expertise and specialised manufacturing services. 
Research and development: to maintain the Group’s scientific
competitive edge, Cobra has a molecular biology team, which
employed on average 5 people in 2008 (2007: 6), through
which the Group generates revenue from customer’s research
contracts, develops its own intellectual property, through
innovative manufacturing processes, in addition to the
Group’s oral vaccine platform technology ORT-VAC. Research
and development expenditure fell in the year to £0.5m (2007:
£0.6m) as the molecular biology team dedicated more time to
revenue generating contracts in the second half of the year.
Contract values: these are variable and range from £0.1m to
£5m, dependent upon the size and complexity of the
programme. It usually follows that the further down the
regulatory process our customer is the higher the value of the
potential contract. The Group has been more successful over
the last 2 years in winning bigger contracts that are longer
term in nature.  
Commercial Risks 
In addition to the financial risks included on page 6, the
Group’s risk management framework has highlighted to the
Board the following key commercial risks facing the Group: 
Customer funding: the global biopharmaceutical industry
raised $13.6bn
(3)
worth of funding in 2008, a 55% fall
compared with the record amount of $30.4bn raised in 2007.
The majority of Cobra’s customers are mid sized
biopharmaceutical companies, who are reliant upon this
funding from both the public and private capital markets for
their product development. Cobra constantly monitors via
subscription to the appropriate database and/or the financial
and trade press, the global pipeline funding to determine
which companies are receiving that funding, in particular
during periods of a funding downturn such as that
encountered in 2008.  
The major contribution in the fall in funding in 2008 was
derived from public equity financing which fell 58% in the
year. However the fall in private equity backed funding fell a
more modest 22% to $5.3bn from the record level of £6.8bn
in 2007 which is comparable to the amounts raised in 2004 to
2006. This year Cobra has been successful in targeting and
winning contracts with these privately backed organisations. 
The Group carries out both technical and financial due
diligence on all its customers prior to contract signature. 
Regulatory compliance: Cobra is under constant pressure,
from the UK pharmaceutical regulator, the Medical and
Healthcare Products Regulatory Agency (MHRA), as with all
companies in the sector, through the EU Clinical Trials
Directive to ensure that both of our manufacturing facilities
provide services that are consistent and achieve the
appropriate quality standards, termed current Good
Manufacturing Practice (cGMP).  Non regulatory compliance
with the MHRA may result in production delays or even
closure of our facilities until corrective action is in place. This 
(1) Ernst and Young’s Beyond Borders Global Biotechnology Report 2008
(2) Hi Tech Business Decisions 2008
(3) BioCentury 07/01/2009 Cobra Biomanufacturing Plc 8
Financial & Business Review
risk is managed by employing and maintaining an
experienced quality team of 31 employees across both
facilities (2007: 30) two of which are Qualified Persons (QP).      
Maintainance, validation and upgrade of facilities: both the
Keele and Oxford facilities are maintained to both full cGMP
and MHRA compliance. Capital investment is therefore key to
ongoing activities in these facilities and Cobra invested a
further £0.8m in property, plant and equipment in 2008 (2007:
£1.1m), funded by additional finance leases of £0.6m (2007:
£0.6m).
Recruitment, retention and training of employees: Cobra
operates in a knowledge based industry and recognises the
importance of the appropriate recruitment and retention of
its highly skilled workforce. The Group operates a
performance management and appraisal framework which
links directly into the risk management process and the
financial objectives of the business. Cobra has a preferred list
of recruitment agents to build relationships and ensure the
Group offers competitive salaries. Cobra also places great
emphasis on open and dynamic communication with its
employees, which includes a Staff Committee, monthly
newsletter, guidance notes and published management
structures and job descriptions.
Market fluctuations and customer product failure: the
biopharmaceutical market is young and rapidly growing
which can from time to time, be subject to trends and
fluctuations. The product failure rate is also similar to the
failure rate of conventional pharmaceuticals, in that 90% of
phase I drugs fail to reach the commercial market. Cobra
attempts to mitigate this risk, by ensuring it has a wide
customer base, working with 33 customers in 2008 (2007: 35),
operating in all the biopharmaceutical market segments and
being very thorough in both its customer financial and
product potential due diligence.  
Key Performance Indicators
Cobra operates in a complex industry, with a requirement for
specialist knowledge. However the financial business model is
one of a conventional contract manufacturing business,
whose primary objective each financial year is to fill capacity
slots and thereby cover the fixed overhead cost. 
The Directors believe that the table below sets out the key
performance indicators of the Group and its performance
against them:
FY 2008 FY 2007
Revenue £7.0m £9.2m
Deferred income at 30 September £1.1m £0.5m
Gross margin 33% 42%
Operating cash outflow (£1.3m) (£0.9m)
Cash and cash equivalents at 30 September £0.3m £1.3m
Employee recruitment: average headcount 123 136
Revenue per average headcount £57k £68k
Mar 2009 Jan 2008
Contracted order book £11.0m £9.4m
Peter Coleman
Finance Director
25 March 2009 Cobra Biomanufacturing Plc 9
Board of Directors
Peter Fothergill BA FCIM (Age 63), Non Executive Chairman
Peter has 40 years’ experience in the international healthcare
industry, including Chairmanship of Fisons Plc’s multinational
research-based Pharmaceutical Division and Consumer Health
Division, where he led a series of strategic development
initiatives, including acquisitions in North America, Europe
and Asia, whilst achieving significant organic growth. He was
a main Board Director 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 private 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.
Simon Saxby PhD (Age 50), Chief Executive
Simon Saxby has 26 years’ experience in the biotechnology
industry, latterly as Chief Executive of Alpha Biologics Sdn
Bhd, a Malaysian contract manufacturing organisation with
an office and laboratories in Cambridge UK. Simon was a
founder of Murex Diagnostics, which was sold to Abbott
Laboratories for $350m, a co-founder and operations director
of Quantum Biosystems Ltd, he led the development of a
CMO business for Unisyn Technologies in Massachusetts, USA
for 4 years and has held appointments with KS Biomedix Plc,
Xenova Group Plc and Synexis Ltd. 
Peter Coleman FCMA MBA (Age 42), Finance Director
Peter has 14 years’ experience in the
pharmaceutical/biotechnology industry and has been Cobra’s
Finance Director since its flotation on AIM in June 2002. Prior
to Cobra he was employed in a variety of senior financial and
corporate development roles.  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.  
Michael Gatenby FCA (Age 64), 
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 and Chairman of Alliance Pharma Plc.  
David Oxlade BSc (Age 59), 
Independent Non Executive Director
After graduating with an Honours Degree in Biochemistry,
David has worked in the biotechnology, diagnostic and
therapeutic health care industries for over 30 years. He has
held senior management positions in Asia and the USA as well
as in Europe. Previously Chief Executive of Xenova Group Plc
and President of Syva Co in California, David is currently
Chairman of BioAnaLab Ltd and a member of EuropaBio’s
Emerging Enterprise Council. Appointed an Honorary Fellow
of Brunel University in 2003, David chaired the European
Working Group of the (DTI) Bioscience and Innovation
Growth Team (2003) and was appointed to the BioScience
Leadership Council in 2004.
Professor Nigel Slater FREng (Age 55), 
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. He is a
member of the MHRA Biologicals and Vaccine Expert Advisory
Group and his research portfolio has included collaborations
with a number of leading pharmaceutical companies. He is
the author of a number of scientific papers and patents.
Additionally, he has relevant biomanufacturing development
and engineering experience with Wellcome Plc and Unilever
Nederland BV.
Peter Fothergill Simon Saxby Peter Coleman Michael Gatenby David Oxlade Nigel Slater Cobra Biomanufacturing Plc 10
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 2008.
Principal Activities and Future Developments
Cobra Biomanufacturing Plc is a holding company, with
wholly owned subsidiaries, Cobra Biologics Limited, Cobra
Oral Technology Limited, Cobra Biomanufacturing EBT
Limited and Cobra Biomanufacturing LLC.  The principal
activity of the Group is the provision of manufacturing
services for protein, virus and DNA based pharmaceuticals. 
Cobra has always traditionally had a strong presence in the
provision of DNA manufacturing services and specialist
protein manufacture and will continue to do so. However it is
also in the process of expanding its offering in the biggest
sector of the market which is the provision of manufacturing
services for mammalian cell secreted protein based products,
a market segment that lends itself to the greater use of
disposable manufacturing systems, which reduce costs,
increase operating efficiency and potentially increase capacity
without the requirement for major investment in
manufacturing facilities. Cobra will seek to reinforce its
position as one of the few contract manufacturing
organisations capable of manufacturing commercial
quantities of regulatory compliant viral products, with
additional viral contracts.
Cobra’s main source of business over the last few years has
been North America. However it is now also applying a
greater marketing emphasis in the Far East, supported by the
DNA contract with ViroMed Co Limited in South Korea and
the appointment of a commercial agent in Japan.
Business Review
The Group is required by the Companies Act to set out in this
report a fair review of the business of the Group during the
financial year and of the position of the Group at the end of
the financial year and a description of the principal risks and
uncertainties facing the Group. The information that fulfils
this requirement can be found in the Financial and Business
Review on pages 5 to 8. The Business Review also includes a
section on the Key Performance Indicators of the Group.
Results and Dividend
The Group loss for the year after providing for taxation was
£3.3m (2007: £1.8m loss) and an equivalent amount has been
deducted from reserves. The Directors do not propose the
payment of a dividend (2007: nil).
The accumulated profit and loss reserve carried forward for
the Group amounted to £38.8m (2007: £35.5m). 
Directors
The Directors in office throughout the year are listed below.  
Executive
Simon Saxby 
(1) (2)
Chief Executive
Peter Coleman Finance Director and Company
Secretary
Non Executive
Peter Fothergill 
(3)
Non Executive Chairman
Michael Gatenby
David Oxlade
Nigel Slater
David Thatcher 
(1) (4)
Peter Coleman retires by rotation and, being eligible, offers
himself 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 Group agrees 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 2008 the trade creditors for the Group
represented 64 days (2007: 52 days) of the amounts invoiced
by suppliers.
Health and Safety
The Group considers Health and Safety to be a top priority in
its workplace and is committed to continual improvement of
its Safety, Health, Environmental and Fire Protection
Procedures through the training of all its employees.  
Third Party Indemnity
The Group has made a third party indemnity provision for the
benefit of the Directors which was made during the year and
remains in force at the date of this report.
(1) On 18 January 2008: Simon Saxby was appointed Chief Operating Officer and
Board Director and David Thatcher stepped down as Chief Executive to become a
Non Executive Director
(2) On 1 June 2008: Simon Saxby was appointed Chief Executive
(3) On 1 November 2008: Peter Fothergill became a Non Executive Chairman
(4) On 17 January 2009: David Thatcher stepped down as a Non Executive Director Cobra Biomanufacturing Plc 11
Report of the Directors
Environmental Policy
The Group is committed to the continuous improvement of
good environmental practice. Whilst our activities have a
relatively low environmental impact, we recognise the
importance of compliance with relevant environmental
legislation and seek to reduce progressively the impact of the
business on the environment. 
The Group complies with the Environmental Agency’s
directive ‘Treatment of Non-Hazardous Waste for Landfill’,
which requires the Group to whenever possible recycle non-
hazardous waste at source, such as paper, cardboard,
aluminium and steel cans, plastic bottles, neon tubes and
batteries. The Group also complies with the EU’s ‘Waste
Electrical and Electronic Equipment Regulations’ which
requires the separate collection, treatment, recovery and
environmentally sound disposal of its electrical equipment.
The Group has been audited by the Carbon Trust to find ways
of reducing its carbon footprint and is currently
implementing its recommendations and will continue to look
for ways to minimise the use of valuable resources and
monitor its environmental performance on a regular basis.
Research and Development
To maintain the Group’s scientific competitive edge, Cobra
has a molecular biology team, which employed on average 5
people in 2008 (2007: 6), through which the Group generates
revenue from customer research contracts, develops its own
intellectual property, through innovative manufacturing
processes, in addition to the Group’s oral vaccine platform
technology, ORT-VAC. 
Charitable and Political Contributions
During the year the Group made no political or charitable
contributions (2007: £nil).
Employee Involvement
The Group recognises and seeks to encourage the
involvement of its employees, with the aim being to recruit,
motivate and retain employees. Employees are given training
where appropriate. 
Each employee receives a staff handbook, which outlines the
Group’s employment policies and includes a commitment to
equal opportunities. The handbook is designed to attract and
motivate employees regardless of sex, race, religion or
disability. The staff handbook has also been updated to
reflect the Employment Equality (Age) Regulations which
came into force on 1 October 2007 and wherever practicable
gives full consideration to applications for employment from
disabled persons.
The Group operates an annual bonus scheme and a share
option scheme, which grants options to individuals within the
Enterprise Management Incentive Scheme. 
Pension Scheme
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.  
Employee Share Schemes
Employee involvement in the financial performance of the
Group is encouraged through participation in the Company’s
share option schemes.  Further information on share options
is shown in note 25 on pages 43 and 44.
Major Interests in Shares
At 23 March 2009, the following shareholders held interests in
excess of 3% of the ordinary share capital:
No of
Percentage ordinary 
Shareholder holding shares
Mr and Mrs Dixon 43.9% 19,450,000
Pershing Keen Nominees 6.7% 2,983,500
Chase Nominees 6.6% 2,931,675
Vidacos Nominees 5.9% 2,615,213
Cavendish Asset Management 5.1% 2,272,000
Lynchwood Nominees 3.6% 1,590,000
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
28 May 2009 at 11.00am at the offices of Cobra
Biomanufacturing Plc, County Trading Estate, Watlington
Road, Cowley, Oxfordshire OX4 6LX. Notice of the Annual
General Meeting, together with notes on the resolutions, is
on pages 50 and 51. In addition to the ordinary business there
are two items of special business for consideration at the
forthcoming Annual General Meeting. These are: 
1. Under this resolution it is proposed to give authority for
the Directors to allot ordinary shares. Resolution 4 would
give the Board the authority to allot up to 14,779,800
ordinary shares of 1p each which represents one third of
the current issued ordinary share capital of the Company
pursuant to s80 of the Companies Act 1985, together with
a further 14,779,800 ordinary shares of 1p each which   Cobra Biomanufacturing Plc 12
Report of the Directors
represents a further one third of the issued ordinary share
capital of the Company in respect of a rights issue. The
authority would expire at the earlier of the conclusion of
the Company’s next Annual General Meeting held after
the passing of this resolution or 10 July 2010 if earlier. In
the event that:
(a) the actual usage of this authority exceeds one third of
the nominal value of the issued ordinary share capital, and
also,
(b) in the case of issuance being in whole or in part by way
of a fully pre-emptive rights issue monetary proceeds
exceeding one third of the pre-issue market capitalisation
of the Company.  
Then, in accordance with guidelines issued by the
Association of British Insurers, it is intended that all
members of the Board wishing to remain in office would
stand for re-election at the next Annual General Meeting
of the Company following the decision to make the issue
in general.
2. A special resolution to renew until the end of the next
Annual General Meeting or, if sooner, 10 July 2010 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 £44,339 (being 10% of the issued equity share
capital of the Company). The Directors consider that it is in
the best interests of the shareholders that the Board
should have this limited power in order to retain flexibility.
In the opinion of the Directors the passing of these
resolutions is in the best interests of the shareholders.
Statement of Directors’ Responsibilities in
Respect of the Financial Statements
The Directors are responsible for preparing the Annual Report
and the associated financial statements in accordance with
applicable laws and regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the
Directors are required to prepare the financial statements in
accordance with IFRS as adopted by the European Union and
have also elected to prepare financial statements for the
Company under IFRS. The financial statements are required by
law to be properly prepared in accordance with IFRSs as
adopted by the European Union, the Companies Act 1985 and
Article 4 of the IAS Regulation.
IAS 1 requires that the financial statements present fairly for
each financial year the Group’s financial position, financial
performance and cash flows. This requires the faithful
representation of the effects of the transactions, other events
and conditions in accordance with the definitions and
recognition criteria for assets, liabilities, income and expenses
set out in the International Accounting Standards Board’s
‘Framework for the Preparation and Presentation of Financial
Statements’. In virtually all circumstances, a fair presentation
will be achieved by compliance with all applicable IFRSs.
However, Directors are also required to:
1. properly select and apply accounting policies;
2. present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information;
3. provide additional disclosures when compliance with
specific requirements in IFRSs is insufficient to enable users
to understand the impact of particular transactions, other
events and conditions on the entity’s financial position and
financial performance; and
4. make an assessment of the Group’s ability to continue as a
going concern.
The Directors are responsible for keeping proper accounting
records which disclose with reasonable accuracy at any time
the financial position of the Group and enable them to ensure
that the financial statements comply with the Companies Act
1985. They are also responsible for safeguarding assets of the
Group and hence take reasonable steps for the prevention
and detection of fraud and other irregularities. 
The Directors are responsible for the maintenance and
integrity of the corporate and financial information included
on the Company’s website. Legislation in the United Kingdom
governing the preparation and dissemination of the financial
statements may differ from legislation in other jurisdictions.
Going Concern
In determining the appropriate basis of preparation of the
financial statements, the Directors are required to consider
whether the Group can continue in operational existence for
the foreseeable future, this being a period of not less than
twelve months from the date of the approval of the financial
statements.
Cobra had cash and cash equivalents of £0.3m as at 30
September 2008 and incurred a loss of £3.3m for the twelve
months ended 30 September 2008.  The Group’s Directors
have prepared a detailed cash flow forecast for the period
ending 30 September 2010 (“the forecast”) which includes a
number of assumptions regarding income, expenditure, cash
flows and the availability of the Group’s existing overdraft
facilities. In preparing the forecast, the Directors have taken into
account the recent trading activity of the Group, notably the
improved trading in the second half of the financial year 2008
and the current £11m secured contracted order book.  The
Directors have also reviewed the value and content of the
priority leads, taking into account the historical conversion
rate of priority leads into secured contracts, the cost base and
capital required to deliver on the income forecast, the
availability of the Group’s overdraft and the assumptions
relating to the timing of the Group’s cash flow.   
However, given the nature of the Group’s business, typified by
both the variety and size of each contract, in conjunction with
the current global economic climate, it is inherently difficult
to accurately forecast the timing of contract signatures and
the associated subsequent cash flows. In this regard
theDirectors have made prudent assumptions regarding the
conversion of the priority leads into signed contracts and
ultimately cash.
In addition the Group’s overdraft facility is due for renewal at
the end of August 2009, however based on current information
available to them and the historic pattern of renewal of the
facility the Directors believe the facility will be renewed, on
similar terms to those currently in existence. The Directors
therefore consider it reasonable to include the availability of the
facility in their assessment of the going concern basis of
preparation of the financial statements. 
The factors set out above highlight there are material
uncertainties in providing an accurate forecast for the Group,
being the difficulty in accurately forecasting the timings of
contract signatures and the subsequent cash receipts, and the
impending renewal of the existing overdraft facilities with the
bank. This therefore may cast doubt about the Group’s ability to
continue as a going concern for the foreseeable future and as a
result it may be unable to realise its assets and discharge its
liabilities in the normal course of business.  Notwithstanding,
the Directors believe that they have a reasonable expectation
that the Group will be able to operate within its available
resources and there will be sufficient funds to enable the Group
to continue as a going concern for the foreseeable future. 
Auditors
In the case of each of the persons who are Directors of the
Company at the date when this report is approved:
1. as far as each of the Directors is aware, there is no relevant
audit information (as defined in the Companies Act 1985) of
which the Group’s auditors are unaware; and
2. each of the Directors has taken all the steps that they ought
to have taken as a Director to make themselves aware of any
audit information (as defined) and to establish that the
Group’s auditors are aware of that information.
This statement is given and should be interpreted in accordance
with the provisions of s234ZA of the Companies Act 1985.
Deloitte LLP have expressed their willingness to continue in
office as auditors and a resolution to re-appoint them will be
proposed at the forthcoming Annual General Meeting.
By the Order of the Board
Peter Coleman
Finance Director and Company Secretary
25 March 2009
Cobra Biomanufacturing Plc 13
Report of the Directors 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 adopts the necessary
structures and procedures. Although Cobra Biomanufacturing
Plc is listed on the Alternative Investment Market and
therefore is not required to comply with the Combined Code,
the Board has reviewed the corporate governance of the
Group and has implemented the changes it has felt
appropriate, given the Group’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 comprises two Executive Directors, a Non Executive
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 Company 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 ten times during the financial year with each
member attending as follows: 
No of meetings held No of meetings
whilst a member attended
Board member
Peter Fothergill 
(3)
10 10
Simon Saxby 
(1) (2)
77
Peter Coleman 10 10
David Thatcher 
(1) (4)
10 10
Michael Gatenby 10 10
David Oxlade 10 10
Nigel Slater 10 10
Board Committees
The following committees deal with specific aspects of the
Group’s affairs:
Audit Committee: comprises the three Independent 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 the audit and non-audit fees of the external auditors
together with their independence and objectivity. 
Remuneration Committee: comprises the three Independent
Non Executive Directors with Nigel Slater as Chairman.  The
Committee 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 and the three independent Non Executive
Directors. Peter Fothergill is the Chairman of the Committee.
The Committee operates within specific terms of reference,
which includes a regular review of the Board structure, size
and composition and identifying and nominating candidates
to fill board vacancies, as and when they arise.     
Details of all the committee’s terms of reference are available
on the Company’s website www.cobrabio.com. The table
overleaf shows the number of committee meetings during
the financial year and member’s attendance.
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.
(1) On 18 January 2008: Simon Saxby was appointed Chief Operating Officer and
Board Director and David Thatcher stepped down as Chief Executive to become a
Non Executive Director.
(2) On 1 June 2008: Simon Saxby became Chief Executive.
(3) On 1 November 2008: Peter Fothergill became a Non Executive Chairman
(4) On 17 January 2009: David Thatcher stepped down as a Non Executive Director Cobra Biomanufacturing Plc 15
Corporate Governance Statement
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 Board 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 Senior Management Team (the SMT) meets
every two weeks to review and discuss the current issues
facing the Group and its financial performance. The SMT is
comprised of the operational Senior Executives, including
the Chief Executive and the Finance Director who each
provide an update. Each member of the SMT 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 SMT.   
6. The Board and the SMT then monitor the actual monthly
financial performance of the Group against the budget
and the half year revised forecast, with any significant
variances highlighted and explained. 
The Board has established and embedded within the Group a
risk management review process, whereby major key risks
facing the Group have been identified and then allocated to
the appropriate member of the SMT, whose responsibility it is
to manage this risk, by cascading the control and
improvement measures through to the employees of the
Group via the Performance Management System. This process
is reviewed bi-annually by the SMT for effectiveness with a
report presented annually to the Board.
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.
The Board encourages individual shareholders to attend the
Company’s Annual General Meeting, where there is an
opportunity for them to raise general business matters with
the full Board. The 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 will 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.
Audit Committee Remuneration Committee Nomination Committee
No of No of No of
meetings No of meetings No of meetings No of
held whilst meetings held whilst meetings held whilst meetings
a member attended a member attended a member attended
Committee member
Peter Fothergill n/a n/a n/a n/a 1 1
Michael Gatenby 221111
David Oxlade 221111
Nigel Slater 221111 Cobra Biomanufacturing Plc 16
Report on Directors’ Remuneration
UNAUDITED INFORMATION
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 by 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, by
offering Directors the opportunity to participate in the
Company’s share options scheme. 
Non Executive Directors’ Remuneration
Non Executive Directors are appointed for an initial period of
twelve months and then on a rolling contract subject to three
months’ notice either by themselves or the Company 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
2008 is set out in the following table:
Total Total
2008 2007
£000’s £000’s
Non Executive Directors
Michael Gatenby 23 23
David Oxlade 23 23
Nigel Slater 
(1)
23 23
David Thatcher 
(2)
16 -
Total 85 69
Executive Directors’ Remuneration
The Committee determines and agrees with the Board on the
Group’s framework of executive remuneration. 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 managers. 
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 once in the year to 30 September 2008
and the Board accepted the Committee’s recommendations
without amendment.
The current members of the Committee are Michael Gatenby,
David Oxlade 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,
Chief Executive and Finance Director may be invited to attend
meetings and the Committee consults them on proposals
relating to the remuneration of Executive Directors and
senior managers. They do not attend when the Committee
discusses matters relating to their own remuneration.
(1) Nigel Slater’s salary was paid via his consultancy company Bio-Development
Limited
(2) On 18 January 2008: David Thatcher stepped down as Chief Executive to be a Non
Executive Director. His non executive director’s salary was paid via his consultancy
company Biosurvey Consulting Limited Cobra Biomanufacturing Plc 17
Report on Directors’ 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 Executive Directors the opportunity to increase their
earnings by meeting and outperforming short term
objectives through the executive bonus scheme and longer
term objectives through the LTIP scheme. 
3. Evolve compensation schemes that encourage Executive
Directors to hold shares in the Company such as the LTIP
scheme.
4. Overall, reward executives fairly and responsibly for their
contribution to the Group’s short and long term
performance; and 
5. Aligns, where appropriate the interests of the Executive
Directors with those of the members.
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.
Performance related bonus: the annual bonus further
motivates the Executive Directors and other Senior Executives
to achieve the Group’s financial objectives for the financial
year. The Committee reviews regularly the basis of the bonus
and the targets to be achieved. Given the financial
performance for 2008, the Committee decided not to pay a
bonus to the Executive Directors or the Senior Executives.  
Long term incentive arrangements: the Company operates
the Cobra Biomanufacturing Plc 2007 Long Term Incentive
Plan (LTIP) for the Executive Directors, in addition to the
Company’s unapproved share option scheme, which is open
to all employees of the Company. Both schemes are able to
grant options within the Enterprise Management Scheme.
The LTIP is designed to link a substantial part of the long term
reward of the Executive Directors to the investment of their
own funds in the Company’s shares, to align Executive
Director’s remuneration to improvements in the Company’s
performance and help retain them over the long term. The
LTIP allows for two types of award:
Matching award: this takes the form of an option to acquire
a number of shares in the Company at nil cost up to a
maximum of three times the number of shares acquired by
the participant through the scheme’s trust or a SSIP/SSAS
pension scheme up to a maximum of £40k in any financial
year. The ability to exercise the option will be subject to the
prior satisfaction of a performance target. 
Option award: this award does not require the participant to
invest their own funds to be granted nil cost share options.
However the value of share options granted will be limited to
one times salary in each financial year. 
The first awards under the LTIP were made in August 2007
and were matching awards (details of which are included in
the Directors’ Share Options and Performance Related Share
Awards table on page 19). The performance targets in
achieving the options were over a three year period and were
split 50% on achievement of a cumulative EPS target of 12
pence and 50% on total shareholder return in comparison to
other companies within the FTSE Small Cap Pharmaceutical
and Biotechnology Sector.
Other benefits: the Chief Executive, Simon Saxby and the
Finance Director, Peter Coleman both receive as benefits a
motor car, private healthcare and death and disability in
service cover. 
Pension arrangements: the Chief Executive, Simon Saxby 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 made a contribution of
10% of their salary and both were required to make a
minimum contribution of 3% of their basic salary. The scheme
also provides a lump sum death in service benefit. 
Service Contracts
The Chief Executive, Simon Saxby has a notice period of 6
months and Peter Coleman, the Finance Director has 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. Cobra Biomanufacturing Plc 18
Report on Directors’ Remuneration
AUDITED INFORMATION
The basic salary, bonus, pension and benefits awarded to the Executive Directors during the year were as follows:
Compensation
Basic for loss of Remuneration Pension Remuneration Pension
salary Benefits office 2008 2008 2007 2007
£000’s £000’s £000’s £000’s £000’s £000’s £000’s
Executive Directors
Peter Coleman 105 8 - 113 8 108 7
Peter Fothergill
(1) (2)
120 3 - 123 16 111 16
Simon Saxby
(3) (4)
106 4 - 110 8 --
David Thatcher
(3)
56 4 175 235 5 187 17
Total 387 19 175 581 37 406 40
Directors’ Interests
At 30 September 2008, 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 Ordinary shares
of 1p each of 10p each Share options Share options
2008 2007 2008 2007
No (000’s) No (000’s) No (000’s) No (000’s)
Executive Directors
Simon Saxby 260 - - -
Peter Coleman 280 20 190 190
Non Executive Directors
Peter Fothergill 326 66 510 510
Michael Gatenby 160 30 - -
David Oxlade 130 - - -
Nigel Slater 139 9 - -
David Thatcher 197 67 - 646
From the end of the financial year until 25 March 2009 there have been no changes in the above interests.
UNAUDITED INFORMATION
Performance Graph
The graph shows the Company’s Total Shareholder Return
compared to the FTSE Small Cap Pharmaceutical &
Biotechnology Sector for the period from 13 June 2002 to 31
October 2008. Total Shareholder Return 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.
2002 2003 2004 2005 2006 2007
20
40
60
80
100
120
140
160
2008
0
Cobra Biomanufacturing Plc Total Return Index
FTSE Small Cap Pharma and Bio Total Return Index
(1) On 1 November 2008: Peter Fothergill became a Non Executive Chairman.
(2) Peter Fothergill’s pension and benefits were paid via his consultancy company
Countersett Limited.
(3) On 18 January 2008: Simon Saxby was appointed Chief Operating Officer and
Board Director and David Thatcher stepped down as Chief Executive to be a Non
Executive Director.
(4) On 1 June 2008: Simon Saxby became Chief Executive. Cobra Biomanufacturing Plc 19
Report on Directors’ Remuneration
At At Date from
1 October Granted Forfeited 30 September Exercise which Expiry Performance
2007 In year In year 2008 price exercisable date conditions
No (000’s) No (000’s) No (000’s) No (000’s) pence
David Thatcher
(1)
Unapproved scheme 230 - (230) - 100.0 14.06.05 12.06.12 n/a
Unapproved scheme(i) 269 - (269) - 96.5 08.07.06 06.07.13 n/a
Unapproved scheme 116 - (116) - 27.5 13.07.07 11.07.14 n/a
LTIP matching award 31 - (31) - Nil 01.10.09 23.08.16 1&2
646 - (646) -
Peter Fothergill
Unapproved scheme 200 - - 200 100.0 14.06.05 12.06.12 n/a
Unapproved scheme 207 - - 207 96.5 08.07.06 06.07.13 n/a
Unapproved scheme 73 - - 73 27.5 13.07.07 11.07.14 n/a
LTIP matching award 30 - - 30 Nil 01.10.09 23.08.16 1&2
510 - - 510
Peter Coleman
Unapproved scheme 60 - - 60 100.0 14.06.05 12.06.12 n/a
Unapproved scheme(ii) 74 - - 74 96.5 08.07.06 06.07.13 n/a
Unapproved scheme(ii) 33 - - 33 27.5 13.07.07 11.07.14 n/a
LTIP matching award 23 - - 23 Nil 01.10.09 23.08.16 1&2
190 - - 190
(1)
On 18 January 2008 David Thatcher, stepped down as Chief Executive to become a Non Executive Director, and as in the intervening 6 months period after that date he
did not take up his option to purchase shares he is deemed to have forfeited his right to do so. 
Performance Criteria:
1. EPS Target: for each complete 1 penny by which the aggregate of the earnings per share in respect of the financial years 2007, 2008 & 2009 is achieved, the participant
is entitled to exercise 4.17% of the options granted, up to a maximum 12 pence or 50% of the options granted. 
2. TSR: If the Company is ranked equal to the 50th percentile of the FTSE Small Cap Pharmaceutical and Biotechnology Sector at the end of the financial year 2008, the
participant is entitled to exercise 25% of the options granted, for each complete 1% by which the Company is ranked above the 50th percentile, the participant is
entitled to exercise a further 1%, up to a maximum of the 75th percentile or 50% of the options granted.
Notes:
(i) 103,627 of the options were granted under the Enterprise Management Incentive Scheme (EMI Scheme).
(ii) All of the options were granted under the EMI scheme.  
All of the share options granted to the Directors under the unapproved share option scheme 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 2008 was 3.50 pence
(28 September 2007 29.25 pence) and the range during the year was 28.50 pence to 3.50 pence.
Nigel Slater
Chairman - Remuneration Committee
25 March 2009
Director’s Share Options and Performance Related Share Awards
The Directors have been awarded share options over the Company’s shares as follows:  Cobra Biomanufacturing Plc 20
Independent Auditors’ Report to the Members
of Cobra Biomanufacturing Plc
We have audited the Group and Parent Company financial statements (the ''financial statements'') of Cobra Biomanufacturing Plc
for the year ended 30 September 2008 which comprises the Group Income Statement, the Group and Parent Company Balance
Sheets, the Group and Parent Company Cash Flow Statements, the Group and Parent Company Statements of Changes in Equity
and the related notes 1 to 31. These financial statements have been prepared under the accounting policies set out therein. We
have also audited the information in the Report on Directors’ Remuneration which is described as being audited.
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' responsibilities for preparing the Annual Report and associated financial statements in accordance with applicable
law and IFRSs as adopted by the European Union are set out in the Statement of Directors' Responsibilities. 
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and
International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and have been properly prepared
in accordance with the Companies Act 1985 and as regards the Group financial statements, Article 4 of the IAS Regulation. We
also report to you whether in our opinion the information given in the Report of the Directors is consistent with the financial
statements. The information given in the Report of the Directors includes specific information presented in the Financial and
Business Review that is cross referenced from the Business Review section of the Financial and Business Review. 
In addition we report to you if, in our opinion, the Company has not kept proper accounting records, if we have not received all
the information and explanations we require for our audit, or if information specified by law regarding directors' remuneration
and other transactions is not disclosed.
We read the other information contained in the Annual Report as described in the contents section and consider whether it is
consistent with the audited financial statements. The other information comprises the Report of the Directors, the unaudited part
of the Report on Directors’ Remuneration, the Chairman's Statement, the Financial and Business Review and the Corporate
Governance Statement. We consider the implications for our report if we become aware of any apparent misstatements or
material inconsistencies with the financial statements. Our responsibilities do not extend to any further information outside the
Annual Report.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices
Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial
statements. It also includes an assessment of the significant estimates and judgments made by the Directors in the preparation of
the financial statements, and of whether the accounting policies are appropriate to the Group's and Company's circumstances,
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order
to provide us with sufficient evidence to give reasonable assurance that the financial statements to be audited 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. Cobra Biomanufacturing Plc 21
Independent Auditors’ Report to the Members
of Cobra Biomanufacturing Plc
Opinion
In our opinion:
• the financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union, of the state of
the Group's and Parent Company’s affairs as at 30 September 2008 and of the Group’s loss for the year then ended;
• the financial statements have been properly prepared in accordance with the Companies Act 1985; and, 
• the information given in the Report of the Directors is consistent with the financial statements.
Emphasis of matter
Without qualifying our opinion, we draw attention to the disclosures made in Note 3 of the financial statements concerning the
Group’s ability to continue as a going concern. The Group incurred a net loss of £3.3m during the year ended 30 September 2008,
and at that date had cash and cash equivalents of £0.3m. The ability of the Company to continue as a going concern is dependent
upon the amount and value of the priority leads and the timing of lead conversion and the resultant receipt of cash pertaining to
those leads and the continued availability of the overdraft facility on the same terms as it is currently, when that facility comes up
for renewal at the end of August 2009.
The Directors have prepared a cash flow forecast which makes assumptions about the conversion of forecasted leads to secured
contracts, and the subsequent receipt of cash relating to those forecasted leads.  Due to the nature of the Group’s business typified
by the variety and size of each contract and in conjunction with the current global climate, it is inherently difficult to forecast
accurately the timing of contract signatures and the associated subsequent cash flows, but the Directors consider that their
assumptions are prudent.
Additionally, the current overdraft facility is due for renewal at the end of August 2009. This facility has been consistently available
to the Group, and through continual dialogue with the bank the Directors are confident that this facility will continue to be
renewed on the same basis as it is currently. 
These conditions, along with other matters as set forth in Note 3, indicate the existence of certain material uncertainties which may
cast significant doubt about the Group’s ability to continue as a going concern. The financial statements do not include the
adjustments that would result if the Group was unable to continue as a going concern, as it is not practicable to determine or
quantify them. 
Deloitte LLP
Chartered Accountants and Registered Auditors 
Cambridge, United Kingdom
25 March 2009 Cobra Biomanufacturing Plc 22
Group Income Statement 
for the Year Ended 30 September 2008
Notes 2008 2007
£000’s £000’s
Revenue 5&6 7,009 9,194
Cost of sales (4,686) (5,329)
Gross profit 6 2,323 3,865
Sales, marketing and distribution costs (1,048) (1,058)
Research and development (532) (606)
Administrative expenses (excluding share based payments) (3,789) (3,914)
Share based payments (20) (32)
Total administrative expenses (3,809) (3,946)
Reorganisation costs - (90)
Operating loss (3,066) (1,835)
Finance income 10 18 101
Finance costs 11 (334) (151)
Loss before tax (3,382) (1,885)
Taxation 12 107 110
Loss for the year attributable to equity holders of the Parent Company 7 (3,275) (1,775)
Basic loss per share 14 (11.0)p (9.1)p
The results for the year and preceding year are derived from continuing activities. Cobra Biomanufacturing Plc 23
Group Group Company Company
2008 2007 2008 2007
Notes £000’s £000’s £000’s £000’s
Non current assets
Property, plant and equipment 15 8,203 8,504 - -
Intangible assets 16 125 143 - -
Investments in subsidiary 17 - - 600 600
8,328 8,647 600 600
Current assets
Inventories 18 301 382 - -
Trade and other receivables 19 1,848 1,456 4,464 1,833
Short term investments - 275 - 275
Cash and cash equivalents 19 291 1,338 277 1,336
2,440 3,451 4,741 3,444
Total assets 10,768 12,098 5,341 4,044
Current liabilities
Bank loans and overdraft 20 (371) (194) (30) -
Obligations under finance leases 21 (663) (639) - -
Trade and other payables 22 (2,138) (1,674) (372) (274)
Deferred income (1,091) (516) - -
(4,263) (3,023) (402) (274)
Net current (liabilities)/assets (1,823) 428 4,339 3,170
Non current liabilities
Bank loans 20 (1,763) (1,916) - -
Obligations under finance leases 21 (704) (890) - -
(2,467) (2,806) - -
Total liabilities (6,730) (5,829) (402) (274)
Net assets 4,038 6,269 4,939 3,770
Equity
Called up share capital 24 443 1,959 443 1,959
Deferred shares 24 1,763 - 1,763 -
Share premium 10,411 9,634 10,411 9,634
Merger reserve 29,729 29,729 - -
Other reserves 473 453 473 453
Profit and loss reserve (38,781) (35,506) (8,151) (8,276)
Total equity 4,038 6,269 4,939 3,770
The financial statements on pages 22 to 49 were approved by the Board of Directors on 25 March 2009 and were signed on its
behalf by:
Peter Fothergill
Chairman
Peter Coleman
Finance Director 
Balance Sheets
as at 30 September 2008 Cobra Biomanufacturing Plc 24
Cash Flow Statements
for the Year Ended 30 September 2008
2008 2007 2008 2007
Group Group Company Company
Notes £000’s £000’s £000’s £000’s
Net cash (outflow)/inflow from operating activities 26 (1,265) (871) 260 (263)
Investing activities
Proceeds from disposal of property, plant and equipment 54 - - -
Interest received 18 63 15 54
Payments to acquire property, plant and equipment (798) (1,069) - -
Payments to acquire intangible assets - (4) - -
Decrease in short term deposits 275 - 275 -
Net cash (outflow)/inflow from investing activities (451) (1,010) 290 54
Financing activities
New borrowings - 487 - -
Repayment of borrowings (111) (253) - (1,796)
(Increase)/decrease in amounts owed by Group undertakings - - (2,665) 571
Lease finance acquired via sale and leaseback 580 558 - -
Repayment of capital elements of finance leases (742) (502) - -
Increase in overdraft 135 80 30 -
Issue of ordinary shares 1,024 - 1,024 -
Interest on bank loans (152) (45) - -
Interest element of finance leases (118) (106) - -
Net cash inflow/(outflow) from financing activities 616 219 (1,611) (1,225)
Decrease in cash and cash equivalents (1,100) (1,662) (1,061) (1,434)
Opening cash and cash equivalents 1,338 2,940 1,336 2,784
Effect of foreign exchange gains/(losses) 53 60 2 (14)
Closing cash and cash equivalents 291 1,338 277 1,336 Cobra Biomanufacturing Plc 25
Statements of Changes in Equity
as at 30 September 2008
Group
Share Deferred Share Merger Other Profit and 
capital shares premium reserve reserves loss reserve Total
£000’s £000’s £000’s £000’s £000’s £000’s £000’s
At 1 October 2006 1,959 - 9,634 29,729 421 (33,731) 8,012
Share based payments ---- 32 - 32
Loss for the year ----- (1,775) (1,775)
At 30 September 2007 1,959 - 9,634 29,729 453 (35,506) 6,269
Capital reorganisation (see note 24) (1,763) 1,763 -----
Issue of new equity shares (see note 24) 247 ----- 247
Premium arising on issue of equity shares - - 990 - - - 990
Expenses arising on issue of equity shares - - (213) - - - (213)
Share based payments ---- 20 - 20
Loss for the year ----- (3,275) (3,275)
At 30 September 2008 443 1,763 10,411 29,729 473 (38,781) 4,038
Company
Share Deferred Share OtherProfit and
capital shares premium reserves loss reserve Total
£000’s £000’s £000’s £000’s £000’s £000’s
At 1 October 2006 1,959 - 9,634 421 (8,318) 3,696
Share based payment - - - 32 - 32
Profit for the year ---- 42 42
At 30 September 2007 1,959 - 9,634 453 (8,276) 3,770
Capital reorganisation (see note 24) (1,763) 1,763 ----
Issue of new equity shares (see note 24) 247 ---- 247
Premium arising on issue of equity shares - - 990 - - 990
Expenses arising on issue of equity shares - - (213) - - (213)
Share based payments - - - 20 - 20
Profit for the year ---- 125 125
At 30 September 2008 443 1,763 10,411 473 (8,151) 4,939 Cobra Biomanufacturing Plc 26
Notes to the Financial Statements 
for the Year Ended 30 September 2008
1 GENERAL INFORMATION
Cobra Biomanufacturing Plc is a company incorporated in the UK under the Companies Act 1985. The address of the registered office is
given on page 53. The nature of the Group’s operations and its principal activities are set out in note 6 on pages 32 to 34 and in the
Financial and Business Review on pages 5 to 8. 
The financial information for the year ended 30 September 2007 and 2008 has been prepared under the historical cost basis and is
presented in pounds sterling because this is the currency of the primary economic environment in which the Group operates.
2 ADOPTION OF NEW STANDARDS
In the current year, an interpretation issued by the International Financial Reporting Interpretations Committee is effective. This is IFRIC
11 IFRS 2 ‘Group and Treasury Share Transactions’. The adoption of this interpretation has not led to any significant changes in the Group’s
accounting policies.
The Group also adopted IFRS 7 ‘Financial Instruments: Disclosures’ in the year. The adoption of this standard has resulted in further
disclosures around the Group’s risk management policies and financial assets and liabilities.
At the date of signing these financial statements, the following Standards and Interpretations which have not been applied in these
financial statements were in issue but not effective: 
IFRS 1 (revised) First Time Adoption of IFRS
Amendment to IFRS 2 Vesting conditions and cancellations
IFRS 3 (revised) Business Combinations
IFRS 8 Operating Segments
IFRIC 10 Interim Financial Reporting and Impairment
IFRIC 12 Service Concession Arrangements
(1)
IFRIC 13 Customer Loyalty Programmes
IFRIC 15 Agreements for the Construction of Real Estate
IFRIC 16 Hedges of a net Investment of a Foreign Operation
IFRIC 17 Distribution of Non cash Assets to Owners
IFRIC 18 Transfer of Assets from Customers
IAS 1 (revised) Presentation of Financial Instruments
IAS 23 (revised) Borrowing Costs
Amendment to IAS 27 Consolidation and Separate Financial Statements
IAS 32 (amended) IAS 1 
(amended) Puttable Financial Instruments and Obligations Arising on Liquidation
Amendments to IAS 39 Financial Instruments: Recognition and Measurement: Eligible Hedged Items
Amendments to IAS 39 Reclassification of Financial Assets: Effective Date and Transition
The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the
financial statements of the Group, except for additional disclosures on the adoption of IFRS 8.
3 SIGNIFICANT ACCOUNTING POLICIES 
The Group’s financial information has been prepared in accordance with IFRS as adopted by the European Union (EU) and implemented
in the UK.
Accounting policies: The principal accounting policies adopted in the preparation of this financial information are set out below.  These
policies have been consistently applied to all periods presented, unless otherwise stated. 
Going concern: In determining the appropriate basis of preparation of the financial statements, the Directors are required to consider
whether the Group can continue in operational existence for the foreseeable future, being a period of not less than twelve months from
the date of the approval of the financial statements.
(1) IFRIC 12 is not yet endorsed and therefore cannot be effective Cobra Biomanufacturing Plc 27
Notes to the Financial Statements 
for the Year Ended 30 September 2008
3 SIGNIFICANT ACCOUNTING POLICIES (continued)
The Group had cash and cash equivalents of £0.3m as at 30 September 2008 and incurred a loss of £3.3m for the twelve months ended
30 September 2008.  The Group’s Directors have prepared a detailed cash flow forecast for the period ending 30 September 2010 (“the
forecast”) which includes a number of assumptions regarding income, expenditure, cash flows and the availability of the Group’s
existing overdraft facilities.
In preparing the forecast, the Directors have taken into account the recent trading activity of the Group, notably the improved trading
in the second half of the financial year 2008 and the current £11m secured contracted order book.  The Directors have also reviewed
the value and content of the priority leads, taking into account the historical conversion rate of priority leads into secured contracts,
the cost base and capital required to deliver on the income forecast, the availability of the Group’s overdraft and the assumptions
relating to the timing of the Group’s cash flow.   
However, given the nature of the Group’s business, typified by both the variety and size of each contract, in conjunction with the
current global economic climate, it is inherently difficult to accurately forecast the timing of contract signatures and the associated
subsequent cash flows. In this regard the Directors have made prudent assumptions regarding the conversion of the priority leads into
signed contracts and ultimately cash.
In addition the Group’s overdraft facility is due for renewal at the end of August 2009, however based on current information available
to them and the historic pattern of renewal of the facility the Directors believe the facility will be renewed, on similar terms to those
currently. The Directors therefore consider it reasonable to include the availability of the facility in their assessment of the going
concern basis of preparation of the financial statements. 
The factors set out above highlight there are material uncertainties in providing an accurate forecast for the Group, notably the
difficulty in accurately forecasting the timings of contract signatures and the subsequent cash receipts, and the impending renewal of
the existing overdraft facilities with the bank. This therefore may cast significant doubt about the Group’s ability to continue as a going
concern for the foreseeable future and as a result it may be unable to realise its assets and discharge its liabilities in the normal course
of business.  Notwithstanding, the Directors believe that they have a reasonable expectation that the Group will be able to operate
within its available resources and there will be sufficient funds to enable the Group to continue as a going concern for the foreseeable
future.
This financial information therefore does not include the adjustments that would result, if the Group were unable to continue as a
going concern.
Basis of consolidation: The Company has taken the exemption available under Section 230 of the Companies Act 1985 from presenting
an income statement for the Company, Cobra Biomanufacturing Plc only. The consolidated financial information comprises the
accounts of Cobra Biomanufacturing Plc and its subsidiary undertakings (the Group), Cobra Biologics Limited, Cobra Oral Technology
Limited, Cobra Biomanufacturing EBT Limited and Cobra Biomanufacturing LLC up to 30 September 2008.
Revenue: Excludes value added tax and represents amounts receivable in respect of the sale of services during the year. Revenue on
contracts is invoiced in accordance with the terms of the agreement with the customer. Non refundable deposits, which are usually
invoiced and paid upon contractual signature, are recognised as revenue as the contract progresses. The remainder of the contractual
revenue is recognised upon the stage of completion when the outcome of the contract can be foreseen with reasonable certainty and
after allowing for costs of completion.
Research and development expenditure: Expenditure on new manufacturing process improvements or know how, which includes
internal wage costs and external costs such as patenting, external studies and consultancy which the Group is satisfied that it is
probable that future economic benefit will result, is capitalised as an intangible asset and amortised through research and
development expenditure over its expected useful life. Capitalisation commences from the point at which the technical feasibility and
commercial viability can be demonstrated.   
Expenditure that does not meet the above criteria is written off in the period in which it is incurred.
Intangible assets: Are stated at cost less provisions for amortisation and impairments. Patents are amortised over their estimated useful
economic lives from the time they are available for use until the end of their patent lives, which in the case of our capitalised patents
is 10 years.
Property, plant and equipment: Depreciation is provided on all property, plant and equipment, other than freehold land, at rates
calculated to write off the cost less residual value of each asset evenly over its expected useful life as follows:
Freehold buildings between 15 and 50 years
Plant and laboratory equipment between 6.67 and 15 years
Office equipment 4 years
Motor vehicles 3 years Cobra Biomanufacturing Plc 28
Notes to the Financial Statements 
for the Year Ended 30 September 2008
3 SIGNIFICANT ACCOUNTING POLICIES (continued)
The cost of property, plant and equipment includes directly attributable finance costs, calculated on a day to day basis, on expenditure
incurred during construction and modification. The carrying values of property, plant and equipment 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.
Impairment: The carrying value of property, plant and equipment and intangibles with finite lives are reviewed for impairment when
events or changes in circumstances indicate the carrying value may be impaired. If any such indications exist, the recoverable value of
the asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to determine the recoverable
amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which it belongs.
Taxation: The tax income represents the sum of the current tax receivable and deferred tax. The tax currently receivable is based
on the taxable loss for the year. Taxable losses differ from the net loss as reported in the income statement because it excludes
items of income and expenses that are taxable or deductible in other years and it further excludes items that are never taxable
or deductible.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities
in the financial statements and the corresponding tax bases used in the computation of taxable loss, and is accounted for using
the balance sheet asset method. Deferred tax liabilities are generally recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible
temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary differences arise from the
initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities
in a transaction that affects neither the taxable loss nor the accounting loss.
Deferred tax liabilities are recognised for taxable temporary differences arising from investments in subsidiaries and associates,
and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is
probable that the temporary difference will not reverse in the foreseeable future. The carrying value of deferred tax assets is
reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient profits will be available
to allow all or part of the asset to be recovered. 
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is
realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited direct
to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when there is a
legally enforceable right to off set current tax assets against current tax liabilities and when they relate to income taxes levied by
the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.
Government grants: Amounts received from government grants in respect of capital expenditure are credited to a deferred
income account and are released to the income statement 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.  
Inventories: Are stated in the balance sheet at the lower of cost incurred in bringing each element of inventory to its present
location and condition, and net realisable value. 
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.
Provision is also made for slow moving or obsolete items. 
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 income statement 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.
Share based payments: The Group has applied the requirements of IFRS 2 ‘Share Based Payments’. In accordance with the
transitional provisions, IFRS 2 has been applied to all grants of equity instruments after 7 November 2002, which were unvested
at 1 October 2005.
The Group makes equity settled share based payments to its employees and directors.  Equity settled share based payments are
measured at fair value at the date of grant by use of the Black Scholes model and expensed on a straight line basis over the vesting
period of the award.  At each balance sheet date, Cobra revises its estimate of the number of options that are expected to become
exercisable. Cobra Biomanufacturing Plc 29
Notes to the Financial Statements 
for the Year Ended 30 September 2008
3 SIGNIFICANT ACCOUNTING POLICIES (continued)
The value of any shares or options granted is charged to the income statement over the period the shares vest, with a
corresponding credit to reserves.  When share options are exercised, the proceeds received, net of any transaction costs, are
credited to share capital (nominal value) and share premium. 
Financial instruments: Financial assets and financial liabilities are recognised in the Group’s Balance Sheet when the Group
becomes a party to the contractual provisions of the instrument.
Financial assets: All financial assets are recognised and derecognised on a trade date where the purchase or sale of a financial
asset is under a contract whose terms require delivery of the investment within the timeframe established by the market
concerned, and are initially measured at fair value, plus transaction costs, except for those financial assets classified as at fair value
through profit or loss, which are initially measured at fair value. 
Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’ (FVTPL),
‘held-to-maturity’ investments, ‘available-for-sale’ (AFS) financial assets and ‘loans and receivables’. The classification depends on
the nature and purpose of the financial assets and is determined at the time of initial recognition.
Financial assets at FVTPL: Financial assets are classified as at FVTPL where the financial asset is either held for trading or it is
designated as at FVTPL. A financial asset is classified as held for trading if it is a derivative that is not designated and effective as
a hedging instrument.
A financial asset other than a financial asset held for trading may be designated as at FVTPL upon initial recognition if such
designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or the
financial asset forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is
evaluated on a fair value basis, in accordance with the Group's documented risk management or investment strategy, and
information about the Group is provided internally on that basis; or it forms part of a contract containing one or more embedded
derivatives, and IAS 39 Financial Instruments: Recognition and Measurement permits the entire combined contract (asset or
liability) to be designated as at FVTPL.
Financial assets at FVTPL are stated at fair value, with any resultant gain or loss recognised in profit or loss. The net gain or loss
recognised in profit or loss incorporates any dividend or interest earned on the financial asset. 
Loans and receivables: Trade receivables, loans, and other receivables that have fixed or determinable payments that are not
quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost less any
impairment.
Impairment of financial assets: Financial assets, other than those at FVTPL, are assessed for indicators of impairment at each
balance sheet date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that
occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of
trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is
considered un-collectable, it is written off against the allowance account. Subsequent recoveries of amounts previously written
off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit
or loss.
Cash and cash equivalents: Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly
liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in
value.
Derecognition of financial assets: The Group derecognises a financial asset only when the contractual rights to the cash flows from
the asset expire; or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another
entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the
transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay.
If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to
recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
Financial liabilities and equity: Financial liabilities and equity instruments are classified according to the substance of the
contractual arrangements entered into. 
Equity instruments: An equity instrument is any contract that evidences a residual interest in the assets of the Group after
deducting all of its liabilities. Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue
costs. Cobra Biomanufacturing Plc 30
Notes to the Financial Statements 
for the Year Ended 30 September 2008
3 SIGNIFICANT ACCOUNTING POLICIES (continued)
Financial guarantee contract liabilities: Financial guarantee contract liabilities are measured initially at their fair values and are
subsequently measured at the higher of the amount of the obligation under the contract, as determined in accordance with IAS
37 Provisions, Contingent Liabilities and Contingent Assets; and the amount initially recognised less, where appropriate,
cumulative amortisation recognised in accordance with the revenue recognition policies set out above.
Financial liabilities: Financial liabilities are classified as either financial liabilities ‘at FVTPL’ or ‘other financial liabilities’.
Financial liabilities at FVTPL: Financial liabilities are classified as at FVTPL where the financial liability is either held for trading or
it is designated as at FVTPL. A financial liability is classified as held for trading if it is a derivative that is not designated and
effective as a hedging instrument. A financial liability other than a financial liability held for trading may be designated as at
FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency
that would otherwise arise; or the financial liability forms part of a group of financial assets or financial liabilities or both, which
is managed and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk management
or investment strategy, and information about the Group is provided internally on that basis; or it forms part of a contract
containing one or more embedded derivatives, and IAS 39 Financial Instruments: Recognition and Measurement permits the entire
combined contract (asset or liability) to be designated as at FVTPL.
Financial liabilities at FVTPL are stated at fair value, with any resultant gain or loss recognised in profit or loss as the Group chooses
not to disclose the effective interest rate for debt instruments that are classified as at fair value through profit or loss. The net
gain or loss recognised in profit or loss incorporates any interest paid on the financial liability. 
Other financial liabilities: Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction
costs. Other financial liabilities are subsequently measured at amortised cost. 
Derecognition of financial liabilities: The Group derecognises financial liabilities when, and only when, the Group’s obligations
are discharged, cancelled or they expire.
Derivative financial instruments: The Group enters into a variety of derivative financial instruments to manage its exposure to
interest rate and foreign exchange rate risk, including foreign exchange forward contracts, interest rate swaps and foreign
currency options. Further details of derivative financial instruments are disclosed in note 27 to the financial statements.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured
to their fair value at each balance sheet date. A derivative with a positive fair value is recognised as a financial asset whereas a
derivative with a negative fair value is recognised as a financial liability. 
The resulting gain or loss is recognised in profit or loss immediately. The Group designates certain derivatives as either hedges of
the fair value of recognised assets or liabilities or firm commitments (fair value hedges), hedges of highly probable forecast
transactions or hedges of foreign currency risk of firm commitments (cash flow hedges), or hedges of net investments in foreign
operations.
A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the instrument is more than
12 months and it is not expected to be realised or settled within 12 months. Other derivatives are presented as current assets or
current liabilities.
Fair value hedges: Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in
profit or loss immediately, together with any changes in the fair value of the hedged item that is attributable to the hedged risk.
The change in the fair value of the hedging instrument and the change in the hedged item attributable to the hedged risk are
recognised in the line of the income statement relating to the hedged item. 
Employee benefits: The Group operates a defined contribution pension scheme, covering all eligible employees. Contributions to
the defined contribution pension scheme and all other employee benefit costs, most notably holiday pay are charged to the
income statement on an accruals basis. Cobra Biomanufacturing Plc 31
Notes to the Financial Statements 
for the Year Ended 30 September 2008
4 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
Critical judgements in applying the Group’s accounting policies
In the process of applying the Group’s accounting policies, which are described in note 3, the Directors have made the following
judgements that have the most significant effect on the amounts recognised in the financial statements (apart from those
involving estimations, which are dealt with below).
Revenue recognition: in making their judgement with regard to revenue recognition for its manufacturing services business, the
Directors have considered the detailed criteria for the recognition of revenue for the provision of services set out in IAS 18
‘Revenue’ and in particular for each service contract whether a stage deliverable had been achieved. 
Going concern: in making their judgement with regard to going concern, the Directors have considered the recent trading activity
of the Group in conjunction with the preparation of a detailed cash flow forecast for the twelve month period from the date of
these accounts. Further details on the judgements applied in determining the basis upon which the Directors have made their
judgements on going concern can be found in note 3 on page 26. 
Key sources of estimation uncertainty
Impairment of assets: Determining whether the non current assets of the Group and the Company’s investment in subsidiaries are
impaired requires an estimation of the value in use of the cash generating units to which the assets have been allocated. The value
in use requires management to estimate the future cash flows expected to arise from the cash generating unit and a suitable
discount rate in order to calculate the present value. 
Additionally, estimates and assumptions have been made by management in respect of the fair values of the impairment of trade
receivables, contract profitability, share options, the estimated useful life of tangible and intangible assets, accruals and
prepayments.
5 REVENUE
All revenue is generated from continuing operations, the analysis of which is as follows:
2008 2007
£000’s £000’s
The rendering of services 6,871 9,099
License revenue 138 95
7,009 9,194
Finance income is disclosed separately in the income statement and has been excluded from this note. 
The licensing revenue generated in the current and preceding year was received from a North American customer, whose product
type was protein and the payment is associated with contract manufacturing services.  Cobra Biomanufacturing Plc 32
Notes to the Financial Statements 
for the Year Ended 30 September 2008
6 BUSINESS AND GEOGRAPHICAL SEGMENTS
The Group provides contract manufacturing services for the biopharmaceutical industry. 
Management segments the Group’s service contracts by revenue and gross profit contribution into business segments, defined by
the customer’s product type (i.e. protein, virus, DNA and Cell Line) and geographically, by the four key territories in which its
customers are located (North America, Europe excluding UK, UK and Rest of the World) to provide some level of trend
performance, recognising that there will always be a degree of variability in segmental performance due to the technical
complexity and scientific uniqueness of each service contract.
Management does not allocate sales, marketing and distribution costs, research and development, administrative expenses, share
based payments, finance income, finance costs, taxation and net assets to individual service contract or business or geographic
segments, as they are regarded by the Group as central overheads/assets.
Business segments: The business segmental results for 2008 and 2007 are as follows:
2008 Protein Virus DNA Cell Line Total
£000’s £000’s £000’s £000’s £000’s
Revenue by customer product type 2,383 2,392 1,653 581 7,009
Cost of sales (1,569) (1,350) (1,365) (402) (4,686)
Gross profit 814 1,042 288 179 2,323
Sales, marketing and distribution costs (1,048)
Research and development (532)
Administrative expenses (excluding share based payments) (3,789)
Share based payments (20)
Total administrative expenses (3,809)
Operating loss (3,066)
Finance income 18
Finance costs (334)
Loss before tax (3,382)
Taxation 107
Loss for the year (3,275)
Net assets 4,038 Cobra Biomanufacturing Plc 33
Notes to the Financial Statements 
for the Year Ended 30 September 2008
6 BUSINESS AND GEOGRAPHICAL SEGMENTS (continued)
2007 Protein Virus DNA Cell Line Total
£000’s £000’s £000’s £000’s £000’s
Revenue by customer product type 4,288 2,802 1,817 287 9,194
Cost of sales (2,378) (1,318) (1,522) (111) (5,329)
Gross profit 1,910 1,484 295 176 3,865
Sales, marketing and distribution costs (1,058)
Research and development (606)
Administrative expenses (excluding share based payments) (3,914)
Share based payments (32)
Total administrative expenses (3,946)
Reorganisation costs (90)
Operating loss (1,835)
Finance income 101
Finance costs (151)
Loss before tax (1,885)
Taxation 110
Loss for the year (1,775)
Net assets 6,269
Geographic segments: the geographical segmental results for 2008 and 2007 are as follows: 
North Europe Rest of the
2008 America (excl UK) UK World Total
£000’s £000’s £000’s £000’s £000’s
Revenue by customer location 3,473 1,330 1,550 656 7,009
Cost of sales (1,894) (1,192) (1,144) (456) (4,686)
Gross profit 1,579 138 406 200 2,323
Sales, marketing and distribution costs (1,048)
Research and development (532)
Administrative expenses (excluding share based payments) (3,789)
Share based payments (20)
Total administrative expenses (3,809)
Operating loss (3,066)
Finance income 18
Finance costs (334)
Loss before tax (3,382)
Taxation 107
Loss for the year (3,275)
Net assets 4,038 Cobra Biomanufacturing Plc 34
Notes to the Financial Statements 
for the Year Ended 30 September 2008
6 BUSINESS AND GEOGRAPHICAL SEGMENTS (continued)
North Europe Rest of the
2007 America (excl UK) UK World Total
£000’s £000’s £000’s £000’s £000’s
Revenue by customer location 5,985 2,834 212 163 9,194
Cost of sales (2,645) (2,515) (125) (44) (5,329)
Gross profit 3,340 319 87 119 3,865
Sales, marketing and distribution costs (1,058)
Research and development (606)
Administrative expenses (excluding share based payments) (3,914)
Share based payments (32)
Total administrative expenses (3,946)
Reorganisation costs (90)
Operating loss (1,835)
Finance income 101
Finance costs (151)
Loss before tax (1,885)
Taxation 110
Loss for the year (1,775)
Net assets 6,269
7 LOSS FOR THE YEAR
This is stated after charging/(crediting): 2008 2007
£000’s £000’s
Net foreign exchange rate losses/(gains) 64 (38)
Research and development 532 606
Depreciation of property, plant and equipment 912 850
Amortisation of intangible assets 18 17
Staff costs (see note 9) 4,899 4,967
Loss on sale of property, plant and equipment 7 -
Impairment loss recognised on trade receivables (see note 19) 81 71
Reversal of impairment losses recognised on trade receivables (see note 19) (54) (99)
Government grants (24) (96) Cobra Biomanufacturing Plc 35
Notes to the Financial Statements 
for the Year Ended 30 September 2008
8 AUDITORS’ REMUNERATION
2008 2007
Fees payable to Company’s auditors for the audit of annual accounts £000’s £000’s
Audit of Company’s financial statements 18 17
Audit of Company’s subsidiary’s financial statements 17 16
Total audit fees 35 33
Fees payable to Company’s auditors for other services to the Group
Other services pursuant to legislation 10 16
Tax services 3 5
Other services 5 2
Total non audit fees 18 23
9 STAFF COSTS
Directors’ remuneration
The full detail of Directors’ remuneration and share options are included in the Report on Directors’ Remuneration on pages 16
to 19.
Employees
The average monthly number of people (including directors) employed:
Group 2008 2007
No. No.
Manufacturing 81 92
Sales, marketing and distribution 10 11
Research and development 5 6
Administration 27 27
123 136
Their aggregate remuneration comprised:
2008 2007
£000’s £000’s
Wages and salaries 4,116 4,340
Social security costs 403 426
Other pension costs 380 201
4,899 4,967
Included in the wages and salaries analysis above are the effects of share based payments during the year of £20k (2007: £32k) Cobra Biomanufacturing Plc 36
Notes to the Financial Statements 
for the Year Ended 30 September 2008
9 STAFF COSTS (continued)
Company
The average monthly number of people employed by the Company within administration was 4 (2007: 3). 
Their aggregate remuneration comprised:
2008 2007
£000’s £000’s
Wages and salaries 85 69
Social security costs 4 4
89 73
10 FINANCE INCOME 
2008 2007
£000’s £000’s
Bank interest receivable 18 63
Exchange rate gains - 38
18 101
11 FINANCE COSTS
2008 2007
£000’s £000’s
Interest payable on bank loans 152 45
Interest payable on finance leases 118 106
Exchange rate loss 64 -
334 151
12 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 2008 and 2007.
2008 2007
£000’s £000’s
Taxation on loss on ordinary activities
Tax credit in relation to R&D claim (99) (100)
Adjustments in respect of previous periods (8) (10)
(107) (110) Cobra Biomanufacturing Plc 37
Notes to the Financial Statements 
for the Year Ended 30 September 2008
12 TAXATION (continued)
Factors affecting the tax credit for the year
The tax assessed for the year is lower than the standard rate of corporation tax in the UK.  The differences are explained below:
2008 2007
£000’s £000’s
Loss on ordinary activities before tax (3,382) (1,885)
Loss on ordinary activities multiplied by the standard rate 
of Corporation Tax in the UK of 28% (2007 30%) (947) (566)
Effect of
Disallowed expenses and non taxable income 11 5
Depreciation in excess of capital allowances 239 237
Other timing differences 5 18
Adjustment in respect of previous periods (8) (10)
Tax losses carried forward 617 176
Difference in R&D rate and standard rate of tax (24) 30
Current tax credit for the year (107) (110)
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
£17m (2007: £15m). 
In March 2007, the UK Government announced that it would introduce legislation that would reduce the corporation tax rate to
28% with effect from 1 April 2008. This legislation has now been fully enacted. The deferred tax assets and liabilities, previously
stated at 30% of the temporary differences, were re-measured to 28% of those amounts. In addition the effective tax rate for the
year ended 30 September 2008 is 28%. 
Deferred taxation
The deferred tax recognised and not recognised is as follows:
Group Not Not
Recognised Recognised Recognised Recognised
2008 2008 2007 2007
£000’s £000’s £000’s £000’s
Accelerated capital allowances - (526) - (661)
Other timing differences - (15) - (11)
Tax losses - (4,802) - (4,455)
- (5,343) - (5,127)
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.
Company
The deferred tax recognised and not recognised was £ nil (2007: £ nil)
13 PROFIT ATTRIBUTABLE TO MEMBERS OF THE PARENT COMPANY
The profit dealt with in the accounts of the parent company for the year ended 30 September 2008 was £125k (2007 £42k profit). Notes to the Financial Statements 
for the Year Ended 30 September 2008
Cobra Biomanufacturing Plc 38
14 LOSS PER ORDINARY SHARE
2008 2007
£000’s £000’s
Loss for the year (3,275) (1,775)
Loss per share
Weighted average number of shares (000’s) 29,694 19,591
Loss per share (pence) (11.0) (9.1)
The loss for the year and the weighted average number of ordinary shares for calculating the diluted loss per share for the year
ended 30 September 2008 are identical to that 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.
15 PROPERTY,  PLANT AND EQUIPMENT
Group Plant and Freehold Assets
laboratory Motor Office land & under
equipment vehicles equipment buildings construction Total
£000’s £000’s £000’s £000’s £000’s £000’s
Cost
At 1 October 2006 5,766 8 549 4,229 86 10,638
Additions 790 - 68 7 134 999
Transfers - - - 180 (180) -
At 1 October 2007 6,556 8 617 4,416 40 11,637
Additions 527 - 43 4 98 672
Disposals (105) - - - - (105)
At 30 September 2008 6,978 8 660 4,420 138 12,204
Depreciation
At 1 October 2006 1,599 6 316 362 - 2,283
Charge for the year 575 2 103 170 - 850
At 1 October 2007 2,174 8 419 532 - 3,133
Charge for the year 648 - 88 176 - 912
Depreciation on disposals (44) - - - - (44)
At 30 September 2008 2,778 8 507 708 - 4,001
Carrying amount
At 30 September 2008 4,200 - 153 3,712 138 8,203
At 30 September 2007 4,382 - 198 3,884 40 8,504
Freehold land and buildings with a carrying value of £3.7m (2007: £3.9m) are pledged as security for the Group’s borrowing
facilities with Nat West (see note 20 on page 41. The Group is not allowed to pledge these assets as security for other borrowings
or to sell them to another entity.
The net book value of tangible fixed assets includes £2.2m (2007: £2.0m) 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 £74k (2007: £74k) of capitalised interest relating to the property mortgage loan taken out to
purchase freehold land and buildings. Cobra Biomanufacturing Plc 39
Notes to the Financial Statements 
for the Year Ended 30 September 2008
16 INTANGIBLE FIXED ASSETS
Group Patents
£000’s
Cost
At 1 October 2006 161
Additions -
At 1 October 2007 161
Additions -
At 30 September 2008 161
Amortisation
At 1 October 2006 1
Charge for the year 17
At 1 October 2007 18
Charge for the year 18
At 30 September 2008 36
Carrying amount
At 30 September 2008 125
At 30 September 2007 143
Patent costs are amortised evenly over their useful economic lives.
17 INVESTMENTS
Company Shares in subsidiary
undertaking
£000’s
Cost
At 1 October 2007 and at 30 September 2008 600
Provisions
At 1 October 2007 and at 30 September 2008 -
Net book value
At 1 October 2007 and at 30 September 2008 600
At 30 September 2008 the Company had the following wholly owned subsidiary undertakings:
Subsidiary undertaking Nature of business Country of incorporation
Cobra Biologics Ltd Manufacture of protein, virus and England and Wales
DNA based pharmaceuticals
Cobra Oral Technology Ltd Research and development of oral vaccines England and Wales
Cobra Biomanufacturing EBT Ltd Employee benefit trust England and Wales
Cobra Biomanufacturing LLC Dormant USA Cobra Biomanufacturing Plc 40
Notes to the Financial Statements 
for the Year Ended 30 September 2008
18 INVENTORIES
Group Group Company Company
2008 2007 2008 2007
£000’s £000’s £000’s £000’s
Raw materials & consumables 150 222 - -
Work in progress 151 160 - -
301 382 - -
19 OTHER FINANCIAL ASSETS
Cash and cash equivalents
Cash and cash equivalents comprise cash and short term bank deposits with a maturity of 3 months or less. The carrying amount
of these assets is approximately equal to their fair value.
Trade and other receivables Group Group Company Company
2008 2007 2008 2007
£000’s £000’s £000’s £000’s
Trade receivables 1,236 790 - 4
Amounts owed by Group undertakings - - 4,454 1,789
Other receivables 299 292 - 18
Prepayments 313 374 10 22
1,848 1,456 4,464 1,833
The average credit period taken on the sales of services is 58 days (2007: 36 days). No interest is charged on the receivables that
are overdue. An allowance has been made for estimated irrecoverable amounts from the sale of services of £109k (2007: £82k).
This allowance relates to specific unpaid balances.
The Group’s most significant customer accounts for £325k of trade receivables at 30 September 2008 (2007: £212k) 
Impairment losses Gross Impairment Net Gross Impairment Net
The ageing of total trade receivables at the 2008 2008 2008 2007 2007 2007
reporting date was: £000’s £000’s £000’s £000’s £000’s £000’s
Not past due 1,037 (15) 1,022 612 (17) 595
Past due 0 to 30 days 226 (35) 191 175 - 175
Past due 31 to 60 days 26 (8) 18 18 (13) 5
Past due 61 to 90 days 24 (23) 1 18 (13) 5
Past due 91 to 120 days 4- 4 3- 3
More than 120 days past due 28 (28) - 46 (39) 7
1,345 (109) 1,236 872 (82) 790
The movement in the allowance for impairment in respect of trade receivables during the period was as follows:
Group Group
2008 2007
£000’s £000’s
Balance at the beginning of the year 82 110
Impairment reversed (54) (99)
Impairment recognised 81 71
Balance at the end of the year 109 82 Cobra Biomanufacturing Plc 41
Notes to the Financial Statements 
for the Year Ended 30 September 2008
19 OTHER FINANCIAL ASSETS (continued)
Included in the Group’s trade receivables are debtors with a carrying amount of £214k (2007: £195k) which are past due, but for
which the Group has not provided, as there has not been a significant change in the credit quality of the receivables, the
amounts are still considered recoverable. The Group does not hold any collateral over these balances.   
The Directors consider that the carrying amount of trade and other receivables approximates their fair value.
20 BANK LOANS AND OVERDRAFT
Group Group Company Company
2008 2007 2008 2007
£000’s £000’s £000’s £000’s
Secured borrowings
Bank overdraft 215 80 30 -
Loan 1,919 2,030 - -
2,134 2,110 30 -
Bank loans and overdrafts are repayable as follows:
Within one year 371 194 30 -
In the second year 156 156 - -
In the third to fifth years inclusive 468 468 - -
After five years 1,139 1,292 - -
2,134 2,110 30 -
Amount due for settlement within 12 months (371) (194) (30) -
Amount due for settlement after 12 months 1,763 1,916 - -
All borrowings are held in Sterling, the other principal features of the Group’s borrowings are as follows;
The Group has a bank overdraft facility of £340k (2007: nil) which currently expires on 31 August 2009 and is repayable on
demand. The Group currently pays an interest rate of 2.95% over the National Westminster Bank Plc’s base rate on the balance
of the bank overdraft. At 30 September 2008, the Group had an un-drawn committed borrowing facility of £125k.  
The loan is a mortgage facility, secured against freehold land and buildings. They are repayable in monthly instalments, over a
13 year period commencing November 2007. The Group pays an interest rate of 1.65% over the National Westminster Bank Plc’s
base rate on the outstanding balance.  
21 OBLIGATIONS UNDER FINANCE LEASES
Group Group Company Company
2008 2007 2008 2007
£000’s £000’s £000’s £000’s
Finance leases are repayable as follows:
Within one year 663 639 - -
In the second year 408 511 - -
In the third to fifth years inclusive 296 379 - -
1,367 1,529 - -
Amount due for settlement within 12 months (663) (639) - -
Amount due for settlement after 12 months 704 890 - -
It is the Group’s policy to lease certain plant and equipment. The average lease term is 36 months (2007: 33 months). For the year
ended 30 September 2008 the average effective borrowing was 8.7% (2007: 8.0%). Interest rates are fixed at the contract date.
All lease payments are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
All lease obligations are denominated in Sterling.
The fair value of the Group’s lease obligations is approximate to their carrying values.
The Group’s obligations under finance leases are secured by the lessor’s rights over the leased assets. Notes to the Financial Statements 
for the Year Ended 30 September 2008
22 OTHER FINANCIAL LIABILITIES
Trade and other payables Group Group Company Company
2008 2007 2008 2007
£000’s £000’s £000’s £000’s
Trade payables 1,233 1,085 216 124
Taxation 223 125 74 36
Accruals and other provisions 682 464 82 114
2,138 1,674 372 274
Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit
period taken by the Group for trade payables is 64 days (2007: 52 days). For most suppliers no interest is charged on trade
payables.  
23 OTHER FINANCIAL COMMITMENTS
At 30 September 2008 the Group had outstanding commitments for future minimum lease payments under non cancellable
operating leases, which fall due as follows: 
Land & buildings Other
2008 2007 2008 2007
£000’s £000’s £000’s £000’s
Within one year 237 230 24 30
In the second to fifth year 728 728 14 30
After five years 363 546 - -
1,328 1,504 38 60
Operating lease payments represent rentals payable by the Group for certain of its office equipment and properties. Leases are
negotiated for an average term of 12 and 5 years respectively and rentals are fixed for an average of 2 and 5 years respectively. 
The Company has no amounts payable under non-cancellable operating leases.
24 CALLED UP SHARE CAPITAL
On 4 June 2008 the Company subdivided and reclassified each existing ordinary 10 pence shares into one new ordinary 1 pence
share and nine deferred 1 pence shares. The rights attached to the new ordinary 1 pence shares are identical in all respects to
those of the existing 10 pence shares.
The deferred shares created on 4 June 2008 have no voting or dividend rights and, on a return of capital, the right only to receive
the amount paid up thereon after the holders of the new ordinary 1 pence shares have received the aggregate amount paid up
thereon plus £10k per new ordinary 1 pence share. They are, in effect, worthless.
Also, on 4 June 2008 the Company issued a further 24,748,000 ordinary 1 pence shares, at a placing price of 5 pence per share. 
Ordinary share capital
Authorised No. 000’s £000’s
Ordinary 10 pence shares at 1 October 2007 27,000 2,700
Ordinary 10 pence shares subdivided into ordinary 1 pence shares 243,000 -
Converted into deferred shares (176,320) (1,763)
Ordinary 1 pence shares at 30 September 2008 93,680 937
Cobra Biomanufacturing Plc 42 Cobra Biomanufacturing Plc 43
24 CALLED UP SHARE CAPITAL (continued)
Ordinary share capital (continued)
Allotted, called up and fully paid No (000’s) £000’s
Ordinary 10 pence shares at 1 October 2007 19,591 1,959
Ordinary 10 pence shares subdivided into ordinary 1 pence shares 176,320 -
Transferred to deferred shares (176,320) (1,763)
Issued in the year 24,748 247
Ordinary 1 pence shares at 30 September 2008 44,339 443
Deferred share capital
Allotted, called up and fully paid No. (000’s) £000’s
Deferred shares at 1 October 2007 --
Ordinary shares converted into deferred shares 176,320 1,763
Deferred shares at 30 September 2008 176,320 1,763
25 SHARE BASED PAYMENTS
The Company operates an unapproved share option scheme for all employees of the Group. All of the share options granted
under the unapproved share option scheme have been 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. The vesting period is 3 years. If
the options remain unexercised after a period of 10 years after grant, the options expire. Options are forfeited if the employee
leaves the Group before the options vest.
The Company also operates an LTIP scheme for Executive Directors, details of which can be found in the Report on Directors’
Remuneration on page 19. Both the LTIP and unapproved share option scheme are able to grant options within the Enterprise
Management Scheme.
Details of the share options outstanding during the year are as follows:
Unapproved share option scheme 2008 2008 2007 2007
Number of Weighted Number of Weighted
share options average exercise share options average exercise
(000’s) price (in £) (000’s) price (in £)
Outstanding at the beginning of the year 1,620 0.85 1,670 0.86
Granted during the year 84 0.22 59 0.56
Forfeited during the year (668) 0.82 (109) 0.89
Exercised during the year -- --
Outstanding at the end of the year 1,036 0.82 1,620 0.85
Exercisable at the end of the year 871 0.90 1,505 0.88
LTIP scheme 2008 2008 2007 2007
Number of Weighted Number of Weighted
share options average exercise share options average exercise
(000’s) price (in £) (000’s) price (in £)
Outstanding at the beginning of the year 84 nil - nil
Granted during the year - nil 84 nil
Forfeited during the year (31) nil - nil
Exercised during the year - nil - nil
Outstanding at the end of the year 53 nil 84 nil
Exercisable at the end of the year - nil - nil
Notes to the Financial Statements 
for the Year Ended 30 September 2008 Notes to the Financial Statements 
for the Year Ended 30 September 2008
Cobra Biomanufacturing Plc 44
25 SHARE BASED PAYMENTS (continued)
There were no share options exercised in the year (2007: nil). The options outstanding at 30 September 2008 had a weighted
average exercise price of £0.78 (2007: £0.81) and a weighted average remaining contractual life of 5.2 years (2007: 5.9 years). In
financial year 2008, 83,572 options were granted on 26 February 2008, the aggregate of the estimated fair value of those options
granted on that date is £16k. In financial year 2007, 58,697 options were granted on 15 February 2007, the aggregate of the
estimated fair value of those options granted on those dates is £21k.  
The inputs into the Black Scholes model are as follows:
2008 2007
Weighted average share price £0.75 £0.75
Weighted average exercise price £0.72 £0.72
Expected volatility 50.4% 50.4%
Expected life 8 years 8 years
Risk free rate 4.6% 4.6%
Expected dividend yield 0.0% 0.0%
26 NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES
Group Group Company Company
2008 2007 2008 2007
£000's £000's £000's £000's
Operating (loss)/profit (3,066) (1,835) 108 (12)
Reorganisation costs - 90 - -
Depreciation of property, plant and equipment 912 850 - -
Amortisation of intangible fixed assets 18 17 - -
Loss on sale of property, plant and equipment 7 - - -
Share based payments 20 32 20 32
Decrease in inventories 81 213 - -
(Increase)/decrease in trade and other receivables (527) 812 34 22
Increase/(decrease) in deferred income 575 (679) - -
Increase/(decrease) in trade and other payables 607 (436) 98 (305)
(1,373) (936) 260 (263)
R&D tax credit 108 65 - -
Net cash (outflow)/inflow from operating activities (1,265) (871) 260 (263)
27 FINANCIAL INSTRUMENTS
The Group has exposure to the following risks from its use of financial instruments;
• Credit risk
• Market risk
• Liquidity risk
This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and
processes for measuring and managing risk, and the Group’s management of capital. The Board of Directors have overall
responsibility for the establishment and oversight of the Group risk management framework. Risk management policies and
systems are reviewed bi-annually to reflect changes in market conditions and the Group’s activities. The Group’s Audit Committee
oversees how the Board and senior management monitors compliance with the Group’s risk management framework.   Cobra Biomanufacturing Plc 45
Notes to the Financial Statements 
for the Year Ended 30 September 2008
27 FINANCIAL INSTRUMENTS (continued)
Capital management risk
The Group manages its capital to ensure that the entities within the Group are able to continue as going concerns, whilst
maximising shareholders’ returns through the optimisation of the debt and equity balance. The capital structure of the Group
consists of debt, which includes the borrowings in note 20 on page 41, cash and cash equivalents and equity attributable to equity
holders as disclosed in the Statement of Changes in Equity on page 25.
Gearing ratio
The Group’s Board of Directors review the capital structure and as part of this review considers the cost of capital and the costs
associated with each class of capital. The gearing ratio at the year end is as follows:
Group 2008 2007
£000’s £000’s
Debt (2,134) (2,110)
Cash and cash equivalent 291 1,338
Net debt (1,843) (772)
Equity 4,038 6,269
Net debt to equity 0.46 0.12
Debt is defined as long and short term borrowings as disclosed in note 20 on page 41, equity includes all capital and reserves of
the Group attributable to the equity holders of the Company, Cobra Biomanufacturing Plc.  
Externally imposed capital requirements
The Group is required by National Westminster Bank Plc to hold on deposit £275k as security for its mortgage facility. 
Significant accounting policies
Details of significant accounting policies and the methods adopted, including the criteria for recognition, the basis for
measurement and the basis upon which the income and expenditure is recognised, in respect of each class of financial asset,
financial liability and equity instrument are disclosed in note 3 on pages 26 to 30 of the financial statements.
Categories of financial instruments
Group 2008 2007
£000’s £000’s
Financial assets
Fair value through profit and loss (‘FVTPL’) - Held for trading 3 4
Loans and receivables (including cash and cash equivalents and treasury deposits) 1,527 2,403
1,530 2,407
Financial liabilities
Fair value through profit and loss (‘FVTPL’) - Held for trading 99 -
Amortised cost 1,233 1,085
Financial guarantee contracts 3,501 3,639
4,833 4,724 Cobra Biomanufacturing Plc 46
Notes to the Financial Statements 
for the Year Ended 30 September 2008
27 FINANCIAL INSTRUMENTS (continued)
Market risk
The activities of the Group, exposes the Group to the financial risks of changes in the foreign exchanges, primarily the US Dollar
and the Euro and interest rates. The Group enters into derivative financial instruments when appropriate, to manage this
exposure, including the following:
• Forward exchange rate contract to hedge against the exchange rate risk arising from the provision of services to overseas
customers; and
• Interest rate swaps to mitigate the risk of fluctuating interest rates.
Foreign currency risk management
The Group generates a significant proportion of its order book and subsequent revenue from overseas customers in either US
Dollars or Euros, with the majority of its costs denominated in GBP Sterling. This exposure to different currencies can result in
gains or losses with respect to the movements in foreign exchange rates and the impact of such fluctuations can be material.
Accordingly the Group, when appropriate enters into foreign currency forward contracts and/or options to manage this exposure. 
The carrying amounts of the Group’s foreign currency denominated monetary assets/(liabilities) at 30 September 2008 are as
follows;
Liabilities Liabilities Assets Assets
2008 2007 2008 2007
£000’s £000’s £000’s £000’s
US Dollar (158) (71) 730 181
Euro (7) (62) 79 113
Foreign currency sensitivity analysis
The table below details the Group’s sensitivity to a 10% strengthening in foreign currency rates against GBP Sterling which in the
Board’s opinion is reasonable given current market conditions. The sensitivity analysis includes only outstanding foreign currency
denominated monetary assets/(liabilities) and adjusts their translation at 30 September 2008 for a 10% strengthening in foreign
currency rates. The analysis is performed on the same basis for 30 September 2007. 
US Dollar currency impact Euro currency impact
2008 2007 2008 2007
£000’s £000’s £000’s £000’s
Profit and loss account (130) (17) (4) -
Equity (130) (17) (4) -
A 10% weakening in foreign exchange rates against GBP Sterling would have an equal but opposite effect. 
The loss indicated in the table is due to the Group’s exposure to exchange rate movements in the US Dollar and Euro denominated
monetary assets and liabilities. However what is not reflected is the impact of an exchange rate movement in the US Dollar and
Euro denominated secured order book.  Cobra Biomanufacturing Plc 47
Notes to the Financial Statements 
for the Year Ended 30 September 2008
27 FINANCIAL INSTRUMENTS (continued)
Forward foreign exchange contracts
The following table indicates the periods in which the cash flows associated with derivatives that are identified as FVTPL are
expected to occur: 
Average exchange rate Foreign currency Contract value Fair value 
2008 2007 2008 2007 2008 2007 2008 2007
$000's $000's £000's £000's £000's £000's
Sell US Dollar
Less than 3 months 1.93 2.01 1,075 435 558 216 515 218
Within 3 to 6 months 1.90 2.00 850 150 447 75 418 76
Within 6 to 12 months 1.84 n/a 1,230 - 670 - 648 -
After 12 months 1.81 n/a 125 - 69 - 67 -
Total US Dollar fair value 1,648 294
2008 2007 2008 2007 2008 2007 2008 2007
€000's € 000's £000's £000's £000's £000's
Sell Euro
Less than 3 months n/a 1.43 - 100 - 70 - 70
Total Euro fair value - 70
Total fair value of forward exchange contracts 1,648 364
These arrangements are designed to alleviate exchange rate exposure on the secured order book for financial year 2009 and
beyond and are renewed and reviewed on a revolving basis as required.
Interest rate risk management
The Group is exposed to interest rate risk as the Group borrows funds at both fixed and floating interest rates. The risk is managed
by maintaining an appropriate mix of fixed and floating rate borrowings and by using interest rate swaps and cap contracts. The
Group’s exposure to interest rates on financial assets and liabilities are listed in the liquidity section of this note.
Interest rate sensitivity analysis
The sensitivity analysis below has been determined upon the exposure to interest rates for both derivatives and non derivative
instruments at the balance sheet date. For floating rate liabilities, the liability is prepared assuming the amount of the liability
outstanding at the balance sheet date was outstanding for the whole of the year. The calculation reflects a 0.5% weakening in
interest rate, which in the Board’s opinion is reasonable given current market conditions.
If interest had fallen by 0.5% and all other variables remained constant the effect on the Group’s financial statements would be
to decrease the loss for the year ended 30 September 2008 and increase reserves by £4k (2007: £2k). This is mainly due to the
Group’s exposure on its variable rate borrowings. 
A 0.5% increase in interest rates would have an equal but opposite effect.
Interest rate swap contracts
Under interest rate swap contracts, the Group agrees to exchange the difference between fixed and floating rate interest amounts
calculated on agreed notional principal amounts. Such contracts enable the Group to mitigate the risk of changing interest rates
on the fair value of issued fixed rate debt held and the cash flow exposures on the issued variable rate debt held. The fair value
of interest rate swaps at the balance sheet date are determined by discounting future cash flows and the credit risk inherent in
the contract. The average interest rate is based upon the outstanding balances at the balance sheet date. Notes to the Financial Statements 
for the Year Ended 30 September 2008
Cobra Biomanufacturing Plc 48
27 FINANCIAL INSTRUMENTS (continued)
Interest rate swap contracts (continued)
The fixed interest rate applied to the interest rate swap contract for the term of the contract is 5.91%.
The notional principal value of the interest rate swap reduces over the period of the contract. The notional principal amount at
30 September 2008 was £0.5m until 8 November 2008 when this reduced to £0.4m, until 8 November 2009 when this reduces to
£0.2m. The contract expires on 8 November 2010.
The interest rate swap settles on a quarterly basis. The floating rate on the interest rate swap is 1.65% over the National
Westminster Bank Plc’s base rate.
The Group did not hold any interest rate swap contracts in the year ended 30 September 2007.
Credit risk management
The Group’s credit risk relates to trade receivables, short term investments and cash and cash equivalents. The credit risk on liquid
funds is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. The
Group has no significant concentration of credit risk related to receivables, as the exposure is spread over a number of customers
over different geographical areas. The Group uses publicly available trading records, web site analysis and press releases to rate
its customers.
Disclosures relating to the credit risk associated with trade receivables are in the financial and business review on pages 5 to 8 and
in note 19 on pages 40 and 41.
Liquidity risk management 
The Group manages liquidity risk by maintaining banking facilities, which includes a bank overdraft and mortgage with National
Westminster Bank Plc and by continuously monitoring both short and long term forecasts against actual cash flows and matching
maturity profiles of financial assets and liabilities. In addition to the bank overdraft, included in note 20 on page 41 is a description
of bank facilities available to the Group. 
The table overleaf details the Group's remaining contractual maturity for its non derivative financial liabilities. The table has been
drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be
required to pay. The table includes both interest and principal cash flows: Cobra Biomanufacturing Plc 49
Notes to the Financial Statements 
for the Year Ended 30 September 2008
27 FINANCIAL INSTRUMENTS (continued)
Liquidity risk (continued)
Less than Within 1 to Within 3 to Within 1 to 5 Due after 
1 month 3 months 12 months years 5 years Total
£000's £000's £000's £000's £000's £000's
2008
Obligations under finance leases 60 217 474 757 - 1,508
Loans 24711851,0121,4172,709
Other payables 14 14 220 - - 248
98 302 879 1,769 1,417 4,465
2007
Obligations under finance leases 61 184 490 1,086 - 1,821
Loans 13661801,1021,6953,056
Other payables 14 14 70 - - 98
88 264 740 2,188 1,695 4,975
Fair values of financial assets and financial liabilities
The fair value, based upon discounted cash flows of the financial instruments detailed above was not materially different from
their book values.
28 CAPITAL COMMITMENTS
Amounts contracted for but not provided in the financial statements amounted to £158k (2007: £nil), in respect of the purchase
of a 150L bioreactor. 
29 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 £374k (2007: £185k).  Contributions totalling £44k (2007: £27k) were payable at the year end.
30 CONTROLLING PARTY
The Directors are of the opinion that Mark Dixon’s 43.9% control of the issued share capital of the Company infers the right to
influence certain Board decisions. 
31 RELATED PARTY TRANSACTIONS
Group
Transactions between the Company and its subsidiaries which are related parties, have been eliminated on consolidation and are
not disclosed in this note.
Company
In the year a management fee of £1.9m (2007: £1.6m) was charged by Cobra Biomanufacturing Plc to Cobra Biologics Limited. Cobra Biomanufacturing Plc 50
Notice of Annual General Meeting
Notice is given that the Annual General Meeting of Cobra Biomanufacturing Plc will be held at the offices of Cobra Biomanufacturing Plc,
County Trading Estate, Watlington Road, Cowley, OX4 6LX on 28 May 2009 at 11.00am.
To transact the following business:
Ordinary Business
1. To receive the accounts for the year ended 30 September 2008 and the report of the Directors and the auditors thereon;
2. To re-elect as a Director, Peter Coleman;
3. To re-appoint Deloitte 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 5 to the passing of resolution 4) pass the following resolutions which
in the case of resolution 4 will be proposed as an ordinary resolution and in the case of resolution 5 will be proposed as a special resolution:
4. (i) 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
£147,797 (representing 33% of the current issued ordinary share capital of the Company) 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, 10 July
2010) 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.
(ii) That the Directors of the Company be and are herby generally and unconditionally authorised to exercise all powers of the
Company to allot equity securities (within the meaning of Section 94 of the Act) in connection with a rights issue in favour of
Ordinary shareholders where the equity securities respectively attributable to the interests of all Ordinary shareholders are
proportionate (as nearly as may be) to the respective numbers of Ordinary shares held by them up to an aggregate nominal
amount of £147,798 (representing 33.3% of the current issued ordinary share capital of the Company) 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,
10 July 2010) 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. 
5. 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 £44,339;
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 10 July 2010), save that the Company may before such expiry make any offers or agreements which would or might require equity
securities to be allotted after such expiry.
By order of the Board Registered in England No.4442927
Peter Coleman
Company Secretary 
25 March 2009
Registered Office
Stephenson Building
Keele Science Park
Keele, Staffordshire ST5 5SP Cobra Biomanufacturing Plc 51
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.
The right to appoint a proxy does not apply to persons whose shares are held on their behalf by another person and who have
been nominated to receive communications from the company in accordance with section 146 of the Companies Act 2006
(“nominated persons”).  Nominated persons may have a right under an agreement with the registered shareholder who holds the
shares on their behalf to be appointed (or to have someone else appointed) as a proxy.  Alternatively, if nominated persons do
not have such a right, or do not wish to exercise it, they may have a right under such an agreement to give instructions to the
person holding the shares as to the exercise of voting rights.
2. An explanation of the special business is given in the Report of the Directors on pages 11 and 12.
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 26 May 2009 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.
3. 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.
4. Any alterations to this proxy must be initialled.
5. The register of Directors’ interests in the Company’s shares and copies of the Directors’ service contracts will be available for
inspection at the Registered Office of the Company during normal business hours from the date of the notice until the date
of the meeting and at the place of the meeting from fifteen minutes before the meeting until it closes. Annual General Meeting: the Annual General Meeting will be held on 28 May 2009 at 11.00 am at the offices of Cobra
Biomanufacturing Plc, County Trading Estate, Watlington Road, Cowley, Oxfordshire, OX4 6LX. The notice of the meeting is set
out on pages 50 and 51.
Company Web Site: the Company’s website www.cobrabio.com provides information on the share price, products, activities and
other financial information. It also includes 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 the registrars, 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.
Capita Share Dealing Services
A quick and easy share dealing service is available to either sell or buy more shares. An on-line and telephone dealing facility is
available providing shareholders with an easy to access and simple to use service. The table below provides you with details of
the associated charges:
There's no need to pre-register and there are no complicated forms to fill in. The on-line and telephone dealing service allows
you to trade "real time" at a known price which will be given to you at the time you give your instruction. To deal on-line or
by telephone all you need is your surname, shareholder reference number, full postcode and your date of birth. Your
shareholder reference number can be found on your latest statement or Certificate where it will appear as either a 'folio
number' or 'investor code'. Please have the appropriate documents to hand when you log on or call, as this information will be
needed before you can buy or sell shares. For further information on this service, or to buy and sell shares, please contact:
• www.capitadeal.com (on-line dealing)
• 0871 664 0364 (telephone dealing) (Calls cost 10p per minute plus network extras)
Shareholder Information
Cobra Biomanufacturing Plc 52
Type of trade Online Telephone
Share certificates 1% of the value of the deal 1.50% of the value of the deal
(Minimum £17.50 max £50) (Minimum £22.50, max £100)
All transactions incur a Compliance charge of £2.50 Cobra Biomanufacturing Plc 53
Directors
Peter Fothergill        (Non Executive Chairman)
Simon Saxby            (Chief Executive)
Peter Coleman            (Finance Director & Company Secretary)
Michael Gatenby   (Independent Non Executive Director)
David Oxlade (Independent Non Executive Director)
Nigel Slater     (Independent Non Executive Director) 
Registered Office
Stephenson Building
Keele Science Park 
Keele                               
Staffordshire ST5 5SP    
+44 (0) 1782 714181
Registered in England No: 4442927
Auditors
Deloitte LLP
126-130 Hills Road
Cambridge CB2 1RY
Bankers
National Westminster Bank Plc
34 High Street
Nantwich
Cheshire CW5 5AZ
www.natwest.com/corporate
Registrars
Capita Registrars                                                                 
The Registry                                                                        
34 Beckenham Road                                                                                         
Beckenham                                                                          
Kent BR3 4TU                                                                     
+44 (0) 871 664 0300 (Calls cost 10p per minute plus network extras)
www.capitaregistrars.com
Directors, Registered Office and Advisors Cobra Biomanufacturing Plc 54
Glossary of Terms
Biopharmaceuticals: Medicines where the active principal
cannot be chemically synthesised and comprise either,
recombinant DNA, protein or virus.
Cell line: Cells used as medicinal products.
Cobra: Cobra Biomanufacturing Plc and its wholly owned
subsidiaries Cobra Biologics Limited, Cobra Oral Technology
Limited, Cobra Biomanufacturing EBT Limited and Cobra
Biomanufacturing LLC  (“The Group”).
Disposable manufacturing technologies: Equipment used in
a Biomanufacturing campaign that is disposed of at the end
of the campaign and therefore not reused or cleaned for the
next campaign, reducing the time and cleaning cost
between campaigns.
DNA: Deoxyribonucleic Acid, a molecule that encodes
genetic information. The DNA molecule consists of four
bases (adenine, cytosine, guanine and thymine) and a sugar
phosphate backbone, arranged in two connected strands to
form a double helix. 
cGMP: current 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 cell secreted protein products/manufacturing
services: Medicines (or manufacturing services) where
mammalian cells naturally secrete the target protein,
without the requirement for an additional recovery step to
break into the cells to recover the target protein.
Microbial recombinant protein products/manufacturing
services: Medicines (or manufacturing services) usually
produced in a strain of E-Coli which accumulates inside the
cell, thus requiring a further recovery process step. This
usually requires fixed equipment rather than disposable
technology, which requires cleaning between each
campaign.
MHRA: The UK pharmaceutical regulator, the Medicines and
Healthcare products Regulatory Agency
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 Cobra’s 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, with Plasmid DNA being
replicating circular DNA encoding genes.
Phase I clinical trials: The first stage of testing a drug
product candidate in human subjects. Normally, a small
group of between 20 to 80 healthy volunteers will be
selected. This phase includes trials designed to assess the
safety and tolerability of a drug product candidate. There
are some circumstances when real patients are used and this
occurs most often in cancer and HIV drug trials. 
Phase II clinical trials: Once the initial safety of the study
drug has been confirmed in Phase I trials, Phase II trials are
performed on larger groups of between 20 to 300 and are
designed to assess how well the drug works, as well as to
continue Phase I safety assessments in a larger group of
volunteers and patients. When the development process for
a new drug fails, this usually occurs during Phase II trials. 
Phase III clinical trials: Are randomized controlled multi
centre trials on large patient groups between 300 and 3,000
(or more depending upon the disease/medical condition
studied) and are aimed at being the definitive assessment of
how effective the drug is, in comparison with current 'gold
standard' treatment. Because of their size and comparatively
long duration, Phase III trials are the most expensive, time-
consuming and difficult trials to design and run, especially in
therapies for chronic medical conditions.
Protein products/manufacturing services: Medicines (or
manufacturing services), where the active ingredient is
protein.
Recombinant: Formed by combining two different segments
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/manufacturing services: Medicines (or the
manufacturing services) where the active ingredient is a
recombinant virus engineered to deliver DNA encoding a
therapeutic gene.
Vaccine: A preparation that contains an antigen, consisting
of disease causing organisms that are used to create
immunity against the disease that is caused by the organism. Cobra Biomanufacturing Plc 55 Cobra Biomanufacturing Plc 56  Keele Facility & Head Office
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