I guess there lies the difference in perspective - I have been...

I guess there lies the difference in perspective - I have been involved as an investor since 2013 and I have never got the impression from him the a deal is just around the corner nor do I get that impression from their announcements or company presentations. I think you had to be involved before this time to have that impression. No disrespect to NW but I looked at PYC a number of times prior to 2013 and I just couldn't pull the trigger - it seemed very 'salesy' - a little too much for my liking. All I have experienced from RH since I started investing is genuine belief and enthusiasm but frankly too much caution on the 'selling the dream' side - my interpretation is that they got their fingers burned, have had their feet held to the fire and now understand what it takes to play in the competitive pond. I went to the shareholders presentation late last year in Sydney and the only thing missing was a relevent audience - RH has got to the right balance between science and $$ in his explanations but the audience he was presenting to was underwhelming. I have also seen a private briefing note that has been shared with offshore fund managers (it's all just publically available information but summarised for sharpening marketing purposes and was not produced by any staff at PYC or promoted by them) and it has been well received so I hope the audience is broadening - the recent pick up in buying made me wonder if some were taking a small stake but any life was crushed by the global volatility of late - maybe it returns. I won't share the whole note as it came through non company sources so I don't want to get anyone into trouble - the thrust of it was simply focus, focus and focus but acknowledges the significant lead time and investment in the development to date. At the risk of upsetting someone I will cut and paste a section which I am sure will attract the ire of our resident commentators (critics) . . . . Please don't blame the company or any of their staff - they didn't write it and weren't asked about it - but it's nice to know someone bothered to write it.

2. Understanding Phylogica’s true source of advantage

Phylogica’s approach to intracellular delivery of large molecules relies on a drug having four properties. Phylogica has adopted a modular approach to drug development where each of these four properties is conferred by a discrete module of a broader drug compound. The four properties are:

1) the ability to target a particular cell type within the body for delivery of the drug

2) the ability to cross the cell membrane and be active within the cell’s cytoplasm

3) the ability to interact with a target inside the cell in a way that beneficially changes the behaviour of that cell

4) the ability to protect the drug between the site of administration (typically a vein) and the site of action (a tumour in Phylogica’s case)

Phylogica has distinctive capabilities in contributing the two modules directed towards properties 2 and 3. These are the two most unique elements of the drug compound.Properties 1 and 4 are more generic problems and have been addressed by a variety of groups through a number of different approaches. Phylogica can license the technologies best suited to its Phylomer platform for inclusion in a lead compound.

Phylogica’s core piece of intellectual property is a library of peptides (Phylomers) that have naturally developed the properties outlined in points 2 and 3 (above). A significant amount of effort has been invested over the past decade in identifying the few Phylomers amongst the trillions in the libraries that have the greatest ability to cross cell membranes and interact with targets. These efforts have yielded a series of Phylomers with the ability to fulfil elements 2 and 3.Building on this, Phylogica’sfocus is now on translating this potential to practical, commercial-ready product development for evaluation in a clinical trial. The early part of this product development path has been encouraging with Phylogica achieving World leading results across both properties 2 and 3 in its chosen and commercially attractive therapeutic area of oncology against the high value Myc target.