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.

Look again cynics

Mondays news will be GREAT

Harvey.

Bet you thought or even said that on/about July 18th too ...... but hope you are right.

Well Harvey, you got the announcement, and market obviously considered it all a big YAWN and price even seems to have dropped 0.5p at the last knockings.

Anticlimax! And it is going to be up to 19 months plus before the procuct is ready and then longer before any revenue.

LOL

"As part of the agreement Amistad must conduct and complete certain pre-clinical and pre-development milestones including formulation, at its own cost, within a period of 18 months from the date 45 days after July 27."

The Euro pharma deal underlines where the price is, the trading range, the upside would only come from here when the US deal arrives, if it does.

The weakness of the deal announced so far might suggest a fall from here as the US deal should be similar. The revenues look to be a long way off (probably a couple of years or so).

Different deals Haystack, the Euro one was always a partnership deal, not like the US one.

I am not biased either, as only holding a small free ride of HML shares left, but the Euro one was just a sideshow, the big one remains the US deal, if they can pull that off then the shares are worth more than they are now.


From UK-analyst.com

Henderson Morley** shares edged 0.5p lower to 3p after it announced details of a license agreement for a new application of its of Ionic Contra Viral Therapy (ICVT) for the topical treatment of genital and labial herpes and certain other dysplasias. The license has been granted to French group Amistad Pharma , a company focused on women's health care. It is an exclusive worldwide licence to bring products to market through a programme of pre-clinical and clinical development. Amistad will pay Henderson Morley 40% of all net receipts received in respect of sub-licences and it will receive a royalty equal to 10% of Amistad's sales. The market is still keenly awaiting details of a US licensing agreement, which is expected to be concluded in August

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