janssen, page-6

Hi Tony,
What I find particularly intriguing is the fact that the technology is already proven to work i.e. Phylogica has "efficiently penetrated cells to deliver [Janssen's] therapeutic cargoes to their targets". The goal of the current collaboration with Janssen is to provide independent evidence of the results already achieved by Phylogica and Janssen scientists.

It would appear that Janssen are ready to deal subject to independent confirmation. Unless Phylogica fabricated the results, confirmation would appear to be purely a function of repeating the experiment.

I believe that this explains why the Chairman indicated that "the Australian market may not be efficiently valuing Phylogica at this stage".

If the technology works rest assured everybody, including as you say our current collaborators in Genentech, Pfizer and Medlmmune, will want it. A range of blockbuster drugs whose mechanisms of action are well known, which may already have come off patent, may potentially find new intracellular targets. Phylogica's ability to maintain funding through this period will tell a lot about the near term prospects of the science.

Regards,

Wayne.