"Significant Technical Developments Co-X-Gene™ Technology The Company’s wholly owned subsidiary Virax Immunotherapeutics Pty Ltd owns the Co-X-Gene TM technology, which it has sub-licenced to Transgene. The Company continues its strategy of adding value to this key technology asset through its strategic out-licensing to Transgene for use in two cancer vaccine products, both in advanced development (the products use Modified vacciniaAnkara as the delivery system). These products are: ? TG4001 (cervical cancer vaccine)–Phase IIb CIN2/3/HPV trials completed and undertaking Phase IIb OSCCs/HPV16 trials; and ? TG4010 (lung cancer vaccine)-Phase IIb trials completed and undertaking Phase IIb/ III trials. This is subject to an Option Agreement negotiated by Transgene with Novartis. The success of both products to date provides clinical validation of the Co-X-Gene TM technology. The Co-X-Gene TM technology asset, through the Transgene license, remains of significant value.
The developments in the two Transgene programs (TG4001 and TG4010) covered by the licence during the financial period were:TG4001 The licence agreement with Roche of April 2007 was terminated by Roche on 22 February 2011 for strategic reasons, notably prior to the completion of Phase II clinical testing and the availability of any data. This trial completed in Q4 2011, with the results released in Q2 2012. Transgene announced that they propose to seek a new partner for this program which was announced on 13 November 2012.
The program has been partnered with EORTC in which TG4001 will be administered in combination with chemo-radiotherapy in patients with HPV16 positive cancer of the oro-pharynx. Any funds Transgene receives during this re-partnering would be covered by the Virax Co-X-Gene technology Sub- licence; resulting in payments under the licence. TG4010 This program is subject to an option agreement with Novartis. The option is exercisable upon receipt of the data from Phase IIb clinical testing. This data is rescheduled for Q1 2014. Novartis then has 90 days to exercise its option (Q2 2014).
This last bit really excites me
***If exercised, Transgene may receive up to €700 million, plus royalties. Any funds Transgene were to receive upon exercise of this option during the term of the Virax Co-X -Gene™ technology Sub-licence would result in payments under the licence***
That payment would be about $1.075 BILLION in AUD terms
Even if VHL is entitled to say 1% of that it would be almost twice the current market cap
VHL Price at posting:
1.2¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)