re: Ann: Phylogica Signs Collaboration and Li... The company has...

re: Ann: Phylogica Signs Collaboration and Li... The company has stated that it is their objective to achieve finacial sustanability in 2011, which means they are able to deliver their products to market while covering any expenses & generating profit, leading to a point where there is no longer a requirement to go back to the market for capital. Current cash in bank (not including any payments that may come forward) will keep the company progressing until mid 2011.

As for will the company actually earn money it comes down to how succesfull the current partnerships are in delivering. It's not uncommon looking at peers overseas for significant milestones to be issued before they even reach the pre-clinical stage, but i guess thats the game if people knew the outcome, it wouldn't be trading here.

So yes as they reach milestones they will take payment & any that do move to commercialisation will inturn pay long life royalties.

Roche is the first major company to be partnered to Phylogica & their next move is imminent. To enter into Stage 2 a pre-determined (but un-disclosed) eight figure payment is required from Roche - so i guess anywhere from $10m-$99m ?



From the Chairman:

"The Phylogica team has found a number of these entirely new drug carriers. Most have never been indentified before by anyone. They have been manufactured, tested and sent to Roche for their review. We hope to have their response shortly and are optimistic they will confirm theseexciting results and open new paths for new drugs."