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.

A bit further to fall now.

from where to where? ..... and of course it would be interesting to hear whether or not you have shorted already (and quantum of course), either HML or any other of the stocks you have attempted to dis or deramp

arguably set by trailing stopp too tight and have been shut out, but what the hell .... very nice profit and slightly above the notional target I had set at Day 1 ..... please, everyone, be careful ..... a few months ago HML rocketed and then dived again and it is certainly a truism that the anticipation proves much better than the arrival.

As I said above the deal was always in the price. The deal isn't even that good.

The money is for development and will add little to their profit.

It will be years before revenues and profit!

The MMs will beat you to death now - up a bit, down a bit, the illusion of a rally etc.

Shares rise on rumour and fall on confirmation. HML is no different.

Haystack
Not in but looks a bit over sold the deal looks OK by me, at first glance

But yes you are right Shares rise on rumour and fall on confirmation punters should read the deal.

If you have just got out have a look at ERX

HS has only proved right after the event....... in fact he called it badly wrong by calling to short when the price was still about 4p ..... in fact, ithas been above 5 for several days, reaching a high just below 6 before today's presumably momentary 6.38

For myself, i am afraid that for once i was an accurate smartarse .... see post 136

I never called to short it ever as I don't short stocks. My comments were that the deal was already in the price and it would fall on confirmation. That has been apparant for a long time. I expect it to fall quite a bit more yet to maybe 2p or lower, maybe even to 1p. Their revenue will consist only of money to commercialise their product and conduct trials for the present. That won't help their profitability much, consequently there is little point in holding these unless you don't mind a long wait.

HS .... you're full of shit ..... if you don't short any stocks, why not, given the comments you make or if you don't short, please enlighten us all as to what stocks you actually hold ...... i have asked you the same Q before but, not to my surprsie at least, you never respond ..... and before you say, "Cynic has sour grape syndrome," read back a little that I got out a few days ago with a slightly greater profit than I hoped

I rarely post on stocks that I hold. What would be the point? I posted on HML as it looked like a hyped-up stock from the start that private investors would get shafted on. This happens a lot.

Certain people spot stocks that they can ramp and do so. They get out after the suckers have pushed up the price. The price collapses and the small investors are locked in for the long term. HML was always going to turn out that way.

It became clearer when the details of a possible deal were spelt out ages ago. The initial phase would be commercialisation and testing after a licence deal. That means that revenue is a long way off. All they get for quite a time is development money. Once the licence deal is announced the price collapses as it is all jam tomorrow at that stage.

the point of posting on stocks you already hold is to impart knowledge or information or reasoning to other memebers as to why you think X looks a good investment.

that apart, for the benefit of us all, which stocks do you think are worth considering to buy (after all, you never short), for your own portfolio cannot be static? ..... or would you not post on those in case the price rose on the back of what you write?

It is more interesting and entertaining to post on bad stocks. The purpose of these BBs is just entertainment, isn't it?

in a word, NO ..... along with most others, if i want entertainment, i watch television or read a book or play golf or similar ..... so as i said, you are just a windbag (methane!) and full of shit .... suggest you migrate to ADVFN where you should find plenty of low life of similar mentality to yourself

I have been on ADV.. since 1999 and have migrated here as it is more polite and pleasant. If my posts bother you then I suggest you are more selective about what you read. Try looking at iii and you will find hoards of punterss that claim to be buying more of HML. They have been taken for suckers once and are begging to be taken for a ride again.

i assume the members of ADVFN also found you a pain ...... unfortunately your posts seem to invade certain threads that interest me

Haystack, Try posting on the AEN thread, they need a bit of help !!

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.

The market seems unimpressed. The price has fallen again 11% today already!

last chance to get in ERX before the milestone payment news comes out