Genetic Technologies Limited

Quarterly Activities Report and Appendix 4C of the ASX Listing Rules for the quarter ended 30 June 2017 - Seite 2

In April 2017, the Company received $260k for ongoing eligible research and development expenditure under the Australian Governments R&D Tax Incentive program.

As at 30 June 2017, the Company had $11.0M in cash.

BREVAGenplus Marketing Update

Product repositioning and transition to direct self-pay program laying the foundation for wider market adoption

As reported last quarter, the Company has completed the commercial repositioning and repricing of BREVAGenplus, and in the process has refined its marketing strategy. As further reported, effective 1 April 2017, the Company commenced transitioning from a traditional reimbursement system, through insurance providers, to a direct patient self-pay program, with a new list price of USD $349.00 per test.

Genetic Technologies is pleased to report that market feedback to date suggests that the self-pay program is being well received by primary care providers. The market is beginning to recognise the benefits of the BREVAGenplus model and more importantly has indicated the need for a breast cancer risk assessment tool that can be readily administered during a wellness visit. Historically, healthcare providers are challenged with the implementation of any breast cancer risk assessment tool, including algorithmic models. The challenge primarily exists in the time necessary to implement a new test in an already time sensitive preventive patient examination visit that offers a relatively low reimbursement benefit.

It is with this in mind, that the next stage of the Company's commercial efforts will be focused on creating an ease of product use protocol that, at a minimum, will maintain the efficiency of a healthcare provider's daily routine. Inherent with the go-forward marketing plan, is to ensure healthcare providers and patients are supplied with consultation tools to alleviate time restraints associated with administering each test.

BREVAGenplus includes medical management that recommends medical risk reduction and lifestyle changes if a patient's results indicate high risk. Although a primary care provider may prescribe medical risk reduction, most primary care providers are requesting a referral site for patients receiving a high risk score. Whether breast surgeon, oncologist or breast centre, the referral site can properly examine and better consult the patient. The approval and acceptance of BREVAGenplus by the referral site represents the completion of the patient management model. With the referral site in place, the primary care provider is in a position to confidently recommend BREVAGenplus to their patient population that qualify, and refer all high risk patients to their preferred specialist.