melbourne shareholder briefing, page-15

Whether tongue in cheek, back of the envelope or just plain hopeful - I can't tell. Nonetheless, whatever the directors valuation number for the phylomer libraries, it is clearly based upon the very solid framework of negotiations with the "investment arms of [several] major drug companies".

Mr Market has assigned a valuation for Phylogica but it isn't within cooee of the numbers being crunched by Big Pharma who are currently doing due diligence. Wilson told us plainly in the Chairman's Update that the share price is both disappointing and frustrating. It is worth contemplating the significance of the comment by the newly appointed director.

"[Phylogica] controls global access to a new source of proprietary therapeutics," said Curnock Cook.

Curnock Cook is a big hitter who has been brought on board to help develop and execute Phylogica's exit strategy by trade sale. What is the value of global access to a new source of proprietary therapeutics? That's the $2B question.

Meanwhile, the business of doing business is ongoing. Retail investors may think that progress is slow but Wilson exclaims that "[he is] not aware of another Australian biotechnology company who has signed partnerships with major pharma at this rate".

The current set up is exciting. Investors are applying one matrix of valuation while Big Pharma is undoubtedly applying yet another based upon global access to a library which may unlock many doors to difficult-to-drug disease targets.