immune response, page-9

Yeah Peace, with the tech so ahead of the rest I just find it odd they haven't explored other targets & companies earlier. What do you make of this section in document?

The CEO Transcript: So is there more commitment with the MedImmune type deal?

Paul Watt: It's a different structure. There are two types of structures that have worked for companies like ours. One is an option-type structure (Roche), the other structure is a research FTE-based structure (MedImmune) to fund full-time equivalent (FTE) staff to screen, so acontract screening model. Both models have been shown to work and both allow access to downstream milestones.

Nick Woolf: I think the MedImmune deal is the model that we're focusing on going forward on the basis that it's so scalable with it being exclusive to a specific target and repeatable. The business model is essentially risk-free for us. We generate near term cash and then we have reach-through rights on the basis that our partner is successful, and there's no exposure for us to fund any of the down stream development.

Paul Watt: The other nice thing is that unlike standard biotech companies in Australia, where there's an enormous amount of investment in some programs before they receive revenue, in this case we're able to license the libraries for diverse target areas where there's no prior investment from Phylogica required and we can still access seven figures in licence and screening fees.

That's why our model is so scalable. We could screen for half a dozen companies in parallel with this model because we don't need to have any prior investment in developing a program of hits that we then try to license. We can start from scratch and screen our libraries against the targets which our pharma partners provide. At the moment we are investing in some improvements in our robotic capabilities which will enable us to screen even larger numbers of targets in parallel to handle more than a dozen deals simultaneously.