Hi Peace,Sometimes the boards words of enthusiasm can do more...

Hi Peace,

Sometimes the boards words of enthusiasm can do more harm than good, imo. I came close to jumping in at the beginning of September, just as a couple of red flags appeared, which have stalled my entry plans in the short term.

? July 2012
"The first research payment from our partner, Janssen, is disclosed in our Appendix 4C for the fourth quarter. As I’m sure our shareholders understand, for commercial reasons, we must maintain confidentiality on the financial aspects of our Janssen agreement. However, what we can say is that the terms are 'commensurate' with other multi-product drug discovery deals of this size and scope. We look forward to announcing further news from this collaboration as the program progresses."

It's usually one of the more reliable indicators, but one would hope on this occasion that the Chairman's words of confidence in the size of the Janssen deal are not commensurate with the size of his share holding.

? Chairman: Ordinary shares 250,000

? September 2012
"Under the terms of the agreement Phylogica will receive a 'significant royalty' on all sales of Le Métier’s cosmetic products that contain PYC35."

LM intends to use PYC35 in its Peau Vierge anti-aging creams = 1 x Day Creme + 1 x Night Creme = 2 products

Le Metier de Beaute report annual gross sales revenue of approx $5m

LMDB x 50 products averages @ $100k in sales revenue per product, before costs

Does one need to establish how large PYC's "significant royalty" receipts may amount to from here...?

? September 2012
"The next scheduled payment from Janssen is 'chunky' and comes on the 12-month anniversary."

One would hope for PYC s/holders that the company ED's definition of "chunky" is a lot more meaningful than, "significant"

? ED and CFO: Ordinary shares *8,471,956

* "At the annual general meeting of shareholders held 24 November 2011, shareholders approved the Loan Funded Share Plan. Allocation of 6,000,000 shares to Nick Woolf were also approved at this meeting."

In Mr Woolf's defense I believe the loan funded allocation of 6m shares was based on a sp of over 6c in 2011, so subject to no 'insurance' clause in that loan funded plan, one may substract the last red flag. Imo.

To close on a positive note, I do believe with a MktCap of only $11.5m Phylogica offers plenty of upside from these levels for the l/termers like you and I - In the short term, well those 3 over-due deals may all come in next week, but one should not hold his breath. Imo, it's always a promising sign that none of the current global partners have abandoned any programs with PYC.

Further exposure to PYC's technology offerings on the international stage during 2013 should keep drawing attention from the majors, and I note Dr Watt is presenting again during a session this year chaired by Novartis peptide discovery director, Dr Vorherr at the 15th TIDES Conference during the 3rd week of May in Boston. Dr Watt presented at this same conference held in Vegas last year.