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.

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

The price should drop back now over the next few days.

hmmm, missed the boat again[ long term should be good i was just looking for a quick short grab and run before i disappear off to war and cant play stocks'n'shares for a good while
Alex

Why Haystack?
IMO, sp will certainly hold until the announcement is reality on 27th ...... what happens then depends on what the deal actually is and where sp stands at the time

The deal is in the price unless it is fantastic. The short term money that came in today will be out as soon as the price flattens and it will then drop. No more news for a while and the speculatiive traders will be out. Of course the deal may not turn out to be that good and then the price will tank, which is why the short termers won't wait.

out of curiosity, do you own any shares at all in anything, or even a portfolio of short positions?

if sp had hit 6p, it's previous high when the deal with US was first mooted, i might have agreed with you ..... however, since that time, a smaller deal with a European company has been concluded, so arguably even a 6p target would not be that ambitious.

I know you disagree with that view, so have you now taken a short position yourself and if not, why not?

Good response to hayskack Mr Cynic, he let his 'doom mongering' down with
ie. 'no more news for a while'---- is next Wed a while ??? etc etc
Could we ask h/s to join the iii site amoung the 500+ crap posters 20/21st inst..
This is a clean(ish) BB site, and his coments did not profit short players albeit he
did his best--

nr

HS is fully entitled to his view, but there would seem to be a marked reticence to financially back any of his bearish statements either here or elsewhere.

And lo and behold it has fallen today. As I said above the short term money is leaving.

It looks like most holders are expecting a very good deal. If that is the case then the deal will already be in the price. If it is just a good deal then the price should fall after the deal is announced (maybe after a small short term rise)

Fair play to Haystack because the price has collapsed and is down an horrendous 1% today so give him credit LOL Anyway I'm willing to lose money if needs be but I'm expecting big things from HML!!