Management's Discussion and Analysis
September 8, 2010
The following is management's discussion and analysis (MD&A) of the results of operations for LPBP Inc.
(LPBP or the Company and which was previously named Hemosol Inc.) for the three months and nine months
ended July 31, 2010 and its unaudited financial statements and accompanying notes. This MD&A should be read
in conjunction with the audited financial statements for the year ended October 31, 2009.
This MD&A is intended to enable readers to gain an understanding of LPBP’s current results and financial
position and provides the information that management believes is required to gain an understanding of LPBP's
current results and to assess the Company's future prospects. Accordingly, certain sections of this report may
contain forward-looking statements that are based on current plans and expectations. These forward-looking
statements are affected by risks and uncertainties that are discussed in this document and that could have a
material impact on future prospects. Readers are cautioned that actual events and results will vary.
Pursuant to a May 2004 plan of arrangement (the Arrangement), the Company entered into an agreement with
MDS Inc. (MDS) which resulted in a reorganization of the Company's business (the Blood Products Business)
and MDS's Ontario clinical laboratories services business (Labs LP). Shareholders, other than MDS, hold
0.44% of the equity shares and 52.5% of the voting shares of the Company. MDS, a related party, holds
99.56% of the equity shares and 47.5% of the voting shares of the Company.
On October 4, 2006, MDS agreed to sell its Canadian diagnostics business in a transaction valued at $1.3
billion. MDS’s Canadian diagnostics business included its general partnership interest in the business of Labs LP.
To effect this transaction, MDS Laboratory Services Inc. (MDS Labs), the general partner of Labs LP,
proposed the sale by Labs LP of the business and assets associated with the labs bus