Main Web Site : www.henderson-morley.com

On line shop web site : http://www.herpesexpert.com (Frost and Simpson)

Investor Relations email : investors@henderson-morley.com

Henderson Morley is a drug discovery company

The company has been developed specifically to carry out preliminary sourcing and screening of candidates to combat diseases caused by the herpes family of viruses and certain other DNA viruses

Latest GECR update 15th October 2006

Latest GE&CR update - 15th Oct 2006 :


The news investors have all been waiting for - regarding negotiations with a US dermatological pharmaceutical firm has finally been unveiled. The licence has been granted under an agreement to
Cutanea, a U.S. pharmaceutical company, specialising in the development of dermatology products in the US market.

The licence is for new applications of ICVT for the treatment of dermatological conditions in humans. The agreement and takes the form of an exclusive American, Mexican and Canadian wide licence to bring products to market through a programme of pre-clinical and clinical development of treatments either by Cutanea or through a sub-licence. Under the terms of the Agreement, Henderson Morley will receive up to 6.675 million dollars in development and commercialisation milestone payments up to the point at which the application receives regulatory approval, and will receive royalties on net sales thereafter.

Under its business plan, Henderson Morley has stated its belief that, following clinical development and regulatory licence approval, sales of the product in excess of $1.5 billion could be achieved over the subsequent ten year period. This would give a potential royalty to Henderson Morley in excess of $115 million over this term.

As a drug discovery company, it is imperative that Henderson continues to grant licenses to further develop its technology portfolio. This is the group's third ICVT license agreement. Encouragingly, Cutanea has a great management team with a proven track record of commercialising dermatology products.

Meanwhile, the company has announced that it has been working away on a vaccine against Koi Carp Herpes virus. The group believes it is now ready to start field trials of a
candidate vaccine, in a collaboration with the Internationally renowned Hagerman
Aquaculture Research Institute in Idaho USA. The initial immunogenicity studies should produce results within 6 months, enabling Henderson Morley scientists to optimise the vaccine formulation, with a view to securing a product licence from the veterinary authorities as soon as practicable.

Clearly activity at Henderson Morley has been significant in recent weeks. The licensing announcement is very encouraging, but with the news now out of the way, the shares have eased - a classic case of buy on the rumour, sell on the news. That said, the stock has now pulled back below the recent placing price. With so much going on at the company, further newsflow in the shorter term is far from unlikely.

*Henderson Morley is a corporate client of Bishopsgate Communications which is owned by RSH, the ultimate owner of GE&CR.

Forecasts and a formal recommendation are suspended ahead of the publication of a detailed note next month.

What is similar is that there probably will still be testing and product development after any deal is struck, thus delaying any revenue. This is what the original announcement said in March. It sounds like it would take a long time: -

preclinical and clinical development of the treatment including research and development, manufacture, laboratory and clinical testing,

"The term sheet also states that the licence territory ('Territory') will cover
the United States of America, Canada and Mexico and that the licensee will fund
and use all reasonable efforts to bring the Licensed Products to market through
a programme which includes the preclinical and clinical development of the
treatment including research and development, manufacture, laboratory and
clinical testing, and marketing of the Licensed Products."

You are making a giant mistake Haystacks....this will come good later this month when the US deal is announced.
H.

if rather than when ..... this deal has now been delayed twice, and it is a truism that deals that take a long time rarely come out well

The revenues from the US deal are likely to be a couple of years away. In that case the price may well fall on a deal announcement. The current price reflects the US deal already. The price should drop on confirmation.

Yawn

Is it my imagination, but was not the US deal meant to be finalised on 18th August having already been delayed at least once?

yep one week to go, hmmmmmmmmmmmmmmmmmmmmm................

good rise today, someone's expecting something, will they get it?

Just made a call and bought on the (very) brave assumption that good news travels much faster than bad (old stock market adage!) ..... this morning's RNS re US talks progressing well is a couple of days in advance of the Friday "deadline" ..... judgement is now whether or not one waits for the final announcement before taking any (hope!) profit.

deal has been signed

Where is the RNS?

I've held this for a long time and recently we've see a step improvement - this is the glimmer of Light at the end of the tunnel.. but no-one knows how far that spot is - it could be a vast vista, or we could see rivals and poor deals wrecking a stellar performance.
FWIW that is why the sp is jerking about - and until the Co delivers orders and profits it will remain so. ( A good Deal would help).
Thre is nothing "certain" just yet IMHO.
However, it's a better bet "now" that ever before and I don't think Management has over-egged the business - so there is a reasonable chance they will deliver, but there is still risk.....do you feel lucky?

cynic I am surprised at your interest, this is dragging out but the yanks are tough negotiators, they must be interested, but to what degree. thought about going back in yesterday but may have missed the opportunity now, so will sit it out

Hello
Anyone in these looks like very good news
Bought a few myself today

Henderson Morley PLC
20 September 2006


FOR IMMEDIATE RELEASE 20 SEPTEMBER 2006

HENDERSON MORLEY PLC
(AIM)

Business: Drug Discovery Company

RE: NEGOTIATION PERIOD

Further to Henderson Morley's announcement on 31 August 2006, the Board is
pleased to announce that considerable progress has been made in negotiations,
and that each party now expects to be in a position to sign a licence agreement
by 27 September 2006.

The Board will provide a further update in due course.

--ENDS--


Enquiries:

HENDERSON MORLEY PLC Tel: 0121 442 4600
Andrew Knight, Chairman

BREWIN DOLPHIN SECURITIES LTD Tel: 0113 241 0126
Neil Baldwin

BISHOPSGATE COMMUNICATIONS LTD Tel: 020 7430 1600
Dominic Barretto
Nick Rome




This information is provided by RNS
The company news service from the London Stock Exchange

that's very encouraging .... by the way, RNS was released deliberately just after London market close ...... lemmings could well be leaping on board tomorrow

enjoy the ride!!!

steveo- 'enjoy the ride' the patient holders will, I have no dought.
The posters broke the record I think-- cira 500 posts in 1 day on iii,
albeit 482 of them CR+P.
Next few days trading could be fun for all--- anyone for 8p+ by next tuesday
if the deals with a big boy ?

Nice to see some news.

Not the big news, as that will be when it is signed and financials known, however it should move HML a few percent tomorrow, along with lots of tree shakes.

Great news, at least it puts down the doom mongers to a point.

I still think the Euro deal could produce a few surprises along the way, and will double up personally if I can get them cheap enough, good luck all.

dibbles,
what would you consider a fair price to get in at?

only ask as i think i missed the boat with erx
Alex