AFR Exclusive, page-79

I have just placed this post on the Roquefort Investments thread, where it seems more relevant, but for some reason it has not appeared on the forum, so will repeat here.

Roquefort has wasted little time in its drug development program.

In January it commenced in vitro screening in Perth of its lead antisense oligonucleotide candidates. The results have demonstrated that they are capable of significantly reducing MK mRNA levels in human cancer cells.

ROQ has filed a provisional patent application to cover the general use of the oligonucleotides in different clinical indications as a new platform for the development of anti-MK drugs. Its current focus is as anticancer agents.

Link to Roquefort’s LSE Announcement on patent filing

Last night the ROQ Chair and CSO gave investor presentations outlining the significance of the results and the Company’s business plans (access limited). It is sufficiently funded to complete pre-clinical work to a point where, if results are as anticipated, it expects to then be in a position to seek a partnership or sale deal to take the drug candidate(s) through human clinical trials. The timeframe is about a year.

Some relevant recent deals of comparable scientific scope and nature, and at the same stage of clinical development, were quoted as involving amounts above $2 billion.

The development is relevant to Anagenics on a number of levels, as determined by its patent licensing rights agreement with Lyramid, which ROQ currently owns.

The agreement requires payment to AN1 of 4% of net revenue from product sales deriving from use of those rights by the licensee, or 8% if sublicensed. Sale of Lyramid to a new owner would retain that payment commitment. Further to this, as confirmed by Halasz in a May21 conference call, sale of Lyramid shares involves payment of 4% of sale proceeds to Anagenics by the purchaser.

The partnership alternative by ROQ would represent sub-licensing of the Lyramid rights, which attracts the 8% royalty rate to AN1.

The term of the Lyramid licence is five years after all patents expire, whether current patents or patents arising out of the existing midkine IP. A 2022 dated patent therefore would extend the royalty payment commitments to at least 2047.

The value of the Anagenics’ patent portfolio is represented by the net present value of its future earnings, so we can only wish Roquefort every success in its development program, and appreciate the upside.