Header updated on 24th April 2008

Market has been looking for an announcement re a licensing deal for Cetilistat, the obesity drug; instead it has been hit with the withdrawal of Renzapride, colonitis drug, following an unauspicious performance at Phase III. Folloiwng has been edited to reflect the situation

Alizyme is a speciality biopharmaceutical company that has been developing product categories for inflammatory gastrointestinal disorders, obesity and supportive cancer care . It is currently trading at a five year low of around 27p with a market cap. of around 60m. Prudential owned a near 20% stake (reduced in sale today?) There was good institutional taku-up of a placing in March rasing 10m at 50p; no wonder there has been "angry" selling. The directors hold 3.34million shares or about 1.7% of the equity (of which Tim McCarthy, CEO has 1.1million); thus, after some 10 years of development effort, they must be comletely focused on the success of the company and multiplying the value of their holdings (but with real doubts about their marketing competence). Alizyme had previously raised capital sums in the past three years at around 70p and 100p so it was somewhat surprising to see the share fall through its 70p support level. Clearly one reason is the current disaffection with the biopharm. market. Another has to be disappointment for the failure of the CEO, Tim McCarthy, to deliver on his expectation that 2007 would be a transformative year. The key question is whether 2008 will be that year and when is it likely to happen? The following points are relevant:

1. Alizyme did sign one deal in late-2007: with Prometheus Labs (U.S.) for the Colal-Pred, at a potential market of $250m, the smallest potential of their four products. Prometheus pay $2.5m up-front with a total of $15m payable upon future development milestones. They are responsible for all US development costs and will pay Alizyme undisclosed royalty rates which will increase with net sales. The deal was followed by a Japanese licensing agreement (which also gave Alizymen access to additional potential drug candidates).

2. This perhaps sets a precedent for subsequent deals for their other products. Cetistat (obesity) has an estimated potential of $1 billion p.a. sales and ATL-104 (mucositis) has a potential of $500m sales. The U.S. FDA has encouraged AZM to also launch a Phase III exercise for Cetistat for all diabetes sufferer because of positive II results for diabetes sufferers who also suffer from obesity.

3. Whilst the development programmes for the other drugs are on-going and appear to be satisfactorily funded from present resources, this is not the case for Cetilistat. The "Product and Company Update statement" (7th Jan 2008) says that 'the Phase III development programme is now ready to commence following the conclusion of a commercial deal'. So, perhaps for the first time, the development programme would be delayed if there was not a funding deal in either the U.S. or Europe. The reason for the sp shooting to nearly 200p in 2004 was the signing of a deal with Takada of Japan for some $50M development funding.

In response to a question at the Conference to report the Renzapride fiasco, McCarthy seemed pleased that there were six potential bidders for Cetilistat; however, that implies any announcement is some time away. When it comes, however, taking a line from the Takada and Prometheus deals it would seem likely that there would be of the order of $100m funding to support development. Of course, the major cash flow will be from licensing of actual sales. The analysts do their own discounted cash flow exercises; those seen tend to dwarf current valuations of the company.

There is not a strong argument for jumping in unless and until the sp establishes a baseline. Given the peaks in the sp, the time will probably come when there will be a very significant jump. An alternative scenario, is that management continue to rpove their level of incompetence and a buy-our results. Clearly the strength of the company is in their biochemists.

Eric

Who is Ramping again??

Agree that pharmas are very much out of favour. The prospects for Alizyme have strengthened significantly: (a) FDA approvals for Cetistat proptocols; (b) new market opening up for Diabetes treatment; (c) foundations set for Cetilistat licensing; (d) promise of good newsflow this year for that and re Phase III reporting on renzapride and COLAL-PRED (e) 10m funds raised at 50p. So much more value built-up since share was trading in 100p to 180p range. From what I can see AZM is further forwrd than most comparable companies and has a better portfolio spread.

It is, of course, difficult to read the short term. You could conclude that this is one that it is best to tuck away - perhaps a 10-bagger over four to five years. I am happily building up a CFD position by topping up when there is a margin of funds. What about the short-term. A report is due on Renzapride in April but that could be just taken in market's stride. Probably the next step up will have to await the licensing agreement for Cetilistat; the pressure on that is that Phase III is awiting the agreement so I expect it by June.

Eric

Alizyme PLC
17 March 2008


For Immediate Release 17 March 2008


ALIZYME PLC



TR - 1: NOTIFICATION OF MAJOR INTERESTS IN SHARES



1. Identity of the issuer or the underlying issuer of existing
shares to which voting rights are attached:


Alizyme plc


2. Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights


3. Full name of person(s) subject to the notification obligation:


M&G Investment Funds 3


4. Full name of shareholder(s) (if different from 3.)


Nortrust Nominee Ltd A/C MKK01


5. Date of the transaction and date on which the threshold is crossed or
reached:


12 March 2008


6. Date on which issuer notified:


14 March 2008


7. Threshold(s) that is/are crossed or reached:


14%


8. Notified details:

A: Voting rights attached to shares

+------------+---------------------+------------------------------------------------+
|Class/type |Situation previous to|Resulting situation after the triggering |
|of shares |the Triggering |transaction |
| |transaction | |
|if possible +----------+----------+----------+-------------------+-----------------+
|using the |Number of |Number of |Number of |Number of voting |% of voting |
|ISIN CODE |Shares |Voting |shares |rights |rights |
| | |Rights +----------+----------+--------+--------+--------+
| | | |Direct |Direct |Indirect|Direct |Indirect|
+------------+----------+----------+----------+----------+--------+--------+--------+
|Ordinary |22,271,275|22,271,275|33,128,590|33,128,590| |14.98% | |
|Shares | | | | | | | |
| | | | | | | | |
|GB 2p | | | | | | | |
| | | | | | | | |
|GB0000374289| | | | | | | |
+------------+----------+----------+----------+----------+--------+--------+--------+

B: Financial Instruments

Resulting situation after the triggering transaction
Type of Expiration Exercise/ Number of voting % of voting
financial date Conversion rights that may be rights
instrument acquired if the
Period/Date instrument is
exercised/
converted.

n/a n/a n/a n/a n/a

Total (A+B)

Number of voting rights % of voting rights
33,128,590 14.98%


9. Chain of controlled undertakings through which the voting rights and/or the
financial instruments are effectively held, if applicable


n/a


Proxy Voting:


10. Name of the proxy holder:


n/a


11. Number of voting rights proxy holder will cease to hold:


n/a


12. Date on which proxy holder will cease to hold voting rights:


n/a


13. Additional information


With reference to item 3, M&G Investments Funds 3 is an Open Ended Investment
Company (OEIC) and is not a Prudential group company and must be separately
disclosed.


This OEIC Fund is managed by M&G Investment Management Limited (a wholly owned
subsidiary of Prudential plc) and will have been previously attributed to
Prudential plc solely on the basis that M&G Investment Management Ltd has direct
fund management control over the shares identified in this notification


14. Contact name:


David Campbell, Finance Director


15. Contact telephone number:


+ 44 (0) 1223 896000


For further information, please contact:

David Campbell, Finance Director
ALIZYME plc Tel No: + 44 (0) 1223 896000


Further information on Alizyme can be found on the Company's website:

www.alizyme.com


Alizyme PLC
17 March 2008


For Immediate Release 17 March 2008


ALIZYME PLC



TR - 1: NOTIFICATION OF MAJOR INTERESTS IN SHARES



1. Identity of the issuer or the underlying issuer of existing
shares to which voting rights are attached:


Alizyme plc


2. Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights


3. Full name of person(s) subject to the notification obligation:


Prudential plc group of companies


4. Full name of shareholder(s) (if different from 3.)


BK OF NEW YORK(NOMS)LTD/636922
NORTRUST NOMINEE LTD A/C MHF01
NORTRUST NOMINEE LTD A/C MKK01
NORTRUST NOMS LTD A/C MEL01
PRUCLT HSBC GIS NOM(UK) PAC AC
PRUCLT HSBC GIS NOM(UK) PPL AC
PSIT2 US HIGH TECH FUND


5. Date of the transaction and date on which the threshold is crossed or
reached:


12 March 2008


6. Date on which issuer notified:


14 March 2008


7. Threshold(s) that is/are crossed or reached:


19%





8. Notified details:

A: Voting rights attached to shares

+------------+---------------------+------------------------------------------------+
|Class/type |Situation previous to|Resulting situation after the triggering |
|of shares |the Triggering |transaction |
| |transaction | |
|if possible +----------+----------+----------+-------------------+-----------------+
|using the |Number of |Number of |Number of |Number of voting |% of voting |
|ISIN CODE |Shares |Voting |shares |rights |rights |
| | |Rights +----------+----------+--------+--------+--------+
| | | |Direct |Direct |Indirect|Direct |Indirect|
+------------+----------+----------+----------+----------+--------+--------+--------+
|Ordinary |29,569,831|29,569,831|44,197,627|44,197,627| |19.98% | |
|Shares | | | | | | | |
| | | | | | | | |
|GB 2p | | | | | | | |
| | | | | | | | |
|GB0000374289| | | | | | | |
+------------+----------+----------+----------+----------+--------+--------+--------+

B: Financial Instruments

Resulting situation after the triggering transaction
Type of Expiration Exercise/ Number of voting % of voting
financial date Conversion rights that may be rights
instrument acquired if the
Period/Date instrument is
exercised/
converted.

n/a n/a n/a n/a n/a

Total (A+B)

Number of voting rights % of voting rights
44,197,627 19.98%


9. Chain of controlled undertakings through which the voting rights and/or the
financial instruments are effectively held, if applicable


Prudential plc (parent Company)

M&G Group Limited (wholly owned subsidiary of Prudential plc)

M&G Limited (wholly owned subsidiary of M&G Group Limited)

M&G Investment Management Limited (wholly owned subsidiary of M&G Limited)

M&G Securities Limited (wholly owned subsidiary of M&G Limited)

Prudential Pensions Limited (wholly owned subsidiary of Prudential plc)

The Prudential Assurance Company Limited (wholly owned subsidiary of Prudential
plc)



Proxy Voting:


10. Name of the proxy holder:


n/a


11. Number of voting rights proxy holder will cease to hold:


n/a


12. Date on which proxy holder will cease to hold voting rights:


n/a


13. Additional information


None


14. Contact name:


David Campbell, Finance Director


15. Contact telephone number:


+ 44 (0) 1223 896000


For further information, please contact:

David Campbell, Finance Director
ALIZYME plc Tel No: + 44 (0) 1223 896000


Further information on Alizyme can be found on the Company's website:


www.alizyme.com




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






Alizyme PLC
17 March 2008


For Immediate Release 17 March 2008


ALIZYME PLC



TR - 1: NOTIFICATION OF MAJOR INTERESTS IN SHARES



1. Identity of the issuer or the underlying issuer of existing
shares to which voting rights are attached:


Alizyme plc


2. Reason for the notification:

An acquisition or disposal of voting rights
An event changing the breakdown of voting rights


3. Full name of person(s) subject to the notification obligation:


Barclays PLC


4. Full name of shareholder(s) (if different from 3.)



5. Date of the transaction and date on which the threshold is crossed or
reached:


11/03/2008


6. Date on which issuer notified:


12/03/2008


7. Threshold(s) that is/are crossed or reached:


5% to below notifiable %


8. Notified details:

A: Voting rights attached to shares

+------------+---------------------+------------------------------------------------------+
|Class/type |Situation previous to|Resulting situation after the triggering transaction |
|of shares |the Triggering | |
| |transaction | |
|if possible +----------+----------+----------+---------------------+---------------------+
|using the |Number of |Number of |Number of |Number of voting |% of voting rights |
|ISIN CODE |Shares |Voting |shares |rights | |
| | |Rights +----------+----------+----------+----------+----------+
| | | | |Direct |Indirect |Direct |Indirect |
+------------+----------+----------+----------+----------+----------+----------+----------+
|Ordinary |11,025,963|11,025,963|Not |Not |Not |Not |Not |
|Shares | | |Reportable|Reportable|Reportable|Reportable|Reportable|
| | | | | | | | |
|GB0000374289| | | | | | | |
+------------+----------+----------+----------+----------+----------+----------+----------+

B: Financial Instruments

Resulting situation after the triggering transaction
Type of Expiration Exercise/ Number of voting % of voting
financial date Conversion rights that may be rights
instrument acquired if the
Period/Date instrument is
exercised/
converted.

n/a n/a n/a n/a n/a


Total (A+B)

Number of voting rights % of voting rights
Not Reportable Not Reportable


9. Chain of controlled undertakings through which the voting rights and/or the
financial instruments are effectively held, if applicable


Proxy Voting:


10. Name of the proxy holder:


n/a


11. Number of voting rights proxy holder will cease to hold:


n/a


12. Date on which proxy holder will cease to hold voting rights:


n/a


13. Additional information


n/a


14. Contact name:


David Campbell, Finance Director


15. Contact telephone number:


+ 44 (0) 1223 896000


For further information, please contact:

David Campbell, Finance Director
ALIZYME plc Tel No: + 44 (0) 1223 896000


Further information on Alizyme can be found on the Company's website:


www.alizyme.com




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

LONDON (Thomson Financial) - Investec Securities has upgraded Alizyme to 'Buy' from 'Hold', with a price target of 59p, saying it believes the wait for a major partnering deal is "almost over".

The broker said it hopes that the company's obesity drug Cetilistat will deliver a licensing deal in the short term, and adds that the company's Irritable Bowel Syndrome drug Renzapride may also be outlicensed in the next 12 months.

It adds that further value may come from the imminent results from late stage trials on Renzapride, due to report in April, and the ulcerative colitis treatment COLAL-PRED, which it expects to be positive. In a note to clients, the broker says it expects the company will not be coming back to the market for more cash for at least two years, pointing out that Alizyme has promised no more major R&D for at least two years without it being funded by a development partner.

ben.deighton@thomson.com

bsd/slm

COPYRIGHT

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This snippet from The Times on Saturday:

"Alizyme rose 1p to 39p ahead of results next week. Investec said that it was close to ending a five-year search for a big development partner."

Also in the FT, and the Guardian,
We shall see!

Also a mention in Saturday's FT re Investec comment and specifically relating it to Cetilistat.

Thanks for that Neil. I bought back in this morning as it seems to be moving in the right direction in any case.

Let's hope so Toya, it would be nice to see the SP stretch it's legs a bit!
Good luck!

Yes, even as far as 50p would be welcome. But when they really do manage another deal it could go much further.

Good buying volume again today. It certainly seems that an announcement re Cetilistat will come with the results. What will that be? If it parallels that late last year for Colal-Pred then it would be about 100K of stage payments with a licensing deal to follow. But remember that was only North America so it could be significantly better than that. Here's hoping.

Eric

I'm certainly delighted to see that my shares are already in profit from this morning, from which I can only assume that good news is indeed in the wind.

for which i too thank you

Did you get in today then, Cynic?

i did .... at 42.0

Good, glad to hear it!

Clever boys (and/or girls)!

Definitely not a boy, thanks Eric!

Buying getting going again. Topped up at 43.75p. Has anyone seen a mention of which day the results are. I am assuming that the Cetistat announcement will be made at the same time. They normally do an institutional briefing. I suspect Investec are well informed so that their price target of 59.something is possibly the next staging post.

Eric

Just been looking again at the Investec comments and the quote that AZM are about to conclude a deal which ends a 5-year search for a major development partner. I'm not sure that they will want a single partner as they could become vulnerable to a takeover which is clearly the last thing the directors want. So the forthcoming announcement could be very significant. A bit surprised that Investec's price targey is only 59p which gives a cap of about 130M. That is round about the level of the other players in this sector, but AZM are much nearer the market with three drugs in Phase III, two seen as blockbusters. A very significant part to the Cetilstat statement a month ago was that they had encouraged them to open another 12 month phase III exercise aimed at Diabetes alone apart from obesity considerations. That effectively adds a third blockbuster.

I am really looking for the announcement to generate a bit more steam and for the share to at least get to 70p before pausing. So don't take your profits too soon, Toya and Cynic. Tomorrow could be the day!

Eric