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.

*Henderson Morley - Initiation of Coverage with a Speculative Buy rating at 1p

19th April 05

Henderson Morley is in the process of exploiting its new, patented technology that could revolutionise the treatment of some common diseases - and some not so common. The company is currently focusing on the Human Papilloma Virus (HPV) and adenovirus - types of virus that are responsible for non-life threatening conditions such as conjunctivitis, skin warts, genital warts and verrucae, but also more serious conditions such as cervical cancer. The platform actually stops viruses from forming within an infected cell by affecting its salt balance. This is a new way of targeting virus activity and its products will be unique in the market place.

Because salts such as potassium and sodium are essential for the function of cells, altering the balance of salts within a cell by this method could result in other beneficial applications, not just for the treatment of viruses. This is another avenue the company is keen to exploit, which could open other revenue streams.

The potential revenues generated by its treatment pipeline are enormous and the company is carefully seeking licensing partners to ensure that it can fully exploit this revenue stream. Costs are being managed effectively and its first product, for the treatment of viral conjunctivitis, is in phase II trials.

The investment risk with this company is effectively lower than in some of its biotechnology peers, as the company is exploiting proven chemical compounds with decades of extensive safety testing. The products will also be novel and target an increasingly important area of biological research - anti-viral activity.

Should the company meet its licensing and milestone payment targets, the upside to the shares is potentially enormous. On a risk weighted DCF basis we value the company at up to 12.8 million pounds - around 4 times the current market value. The shares are a speculative buy.

*This report cannot be regarded as impartial as GE&CR has been commissioned to write it by Henderson Morley which is also a client of Bishopsgate Communications, a firm owned by RSH, the ultimate owner of GE&CR
Key Data
EPIC HML
Share Price 1p
Spread 0.9-1.1p
NMS 10,000
Market Cap. 3.2 million pounds
12 Month Range 0.825-1.55p
Shares Issued 322,300,000
Market AIM
Website www.henderson-morley.com
Sector Biotech
Cash in bank 470,000 pounds
Contact Andrew Knight. executive chairman
0121 442 4600


Background
The science behind Henderson Morley's business is at the cutting edge of current biochemical understanding - but what it is trying to do is actually quite simple. That's the beauty of the platform it has developed. In a nutshell, the company has taken 2 common drugs - which have already undergone rigorous safety testing - and has found a new way of using them to treat some very common viral conditions, when an effective treatment does not already exist. The system is called ionic contra-viral therapy, or ICVT for short, and the platform is currently in phase II trials for the treatment of viral conjunctivitis, but it has proved effective for a wide variety of conditions including skin warts, verrucae and genital warts.



What is a virus?
The discovery of antibiotics by Alexander Fleming in the 1920s revolutionised public health. It was arguably one of the greatest scientific discoveries ever made. The ability to control a simple infection was revolutionary - and it is something that we now take for granted. But the problem with antibiotics is that they do not work with viruses. A virus particle is the simplest and smallest living thing known.

And it is tiny. If you placed a virus particle next to a bacterium, the virus would be dwarfed. It consists of only a string of genetic material encased in a shell, which is mainly protein. A virus is such a simple organism that it does not have the capacity to reproduce itself. This is a major difference between bacteria and viruses. Because a virus does not have the equipment to reproduce, it has to hijack the reproductive systems of another cell - and turn it into a virus factory. An infected cell will then be used to churn out million of new viruses which will, in turn, re-infect other cells and the cycle begins once more. Henderson Morley's ICVT platform interferes with the replication of the virus within the cell - preventing fully-formed virus particles from being manufactured and killing the infection stone dead.

It is very difficult to kill a virus - that's why they are so dangerous. Some of the most serious communicable diseases known to medical science are viral in origin - HIV/AIDS, Ebola and even cervical cancer. Viruses pose a considerable challenge to the body's immune system because they hide within cells. There are many broad-spectrum antibiotics, but hardly any broad-based anti-virals. To the man on the street, the main public health threat is seen as coming from methicillin-resistant Staphylococcus aureus (MRSA), but it is actually the battle with viruses which looks likely to be the main threat and focus over the next 100 years.


Intellectual property
The company has combined 2 drugs - Digoxin and Furosemide. Digoxin is currently used for the treatment of heart failure and chronic atrial fibrillation. Furosemide is one of the top 30 prescribed drugs in the world each year. It is a diuretic and is used in the treatment of heart and liver failure. Both drugs do not have a history of being used as viral treatments - Henderson Morley's patented platform is a unique application. The topical use of Furosemide has been looked at extensively and no adverse side effects have been noted. In fact, some positive effects have been reported with the drug on an anti-inflammatory front. The situation is slightly different with Digoxin, which has shown some negative effects on patients at high doses when used to treat heart disease. However, it has been shown that the localised application of the treatment on skin at controlled concentrations is very unlikely to result in an adverse reaction. All in all, the safety of these drugs when used in topical application should not give investors any need for concern.

The company was granted a European patent for its ICVT in March 2004 and a US patent in November 2004. These will run to 2020.

Why is ICVT so unique?
What is interesting about Henderson Morley's ICVT platform is that it offers a treatment that is broader than most of the current ultra-specific virus treatments. The researchers have found that a combination of Digoxin and Frusemide alters the electrochemistry of a cell and prevents DNA viruses from reproducing. The technology does not work with RNA viruses. The main difference between the two type of virus is a slight difference in the chemical composition of the genetic material. The exact mechanism that the 2 drugs employ to prevent the virus being replicated is due to the inhibition of new viral DNA synthesis. The chemicals act in concert to changed the balance of salts in the cell - potassium in particular - and this prevents a complete virus being formed. The change in concentration is localised and not-systemic, as the treatment is applied by gel, cream or by another suitable carrier. The beauty of the treatment is that this only affects the metabolism of the cell slightly and produces no damaging effects.

Conjunctivitis now trials in Phase II
The company has licensed the conjunctivitis application of its treatment to private Austrian pharma group Croma Pharmaceuticals. This is in line with the company's strategy. Henderson Morley is not a large scale pharmaceutical group and the company does not intend to manufacture the products generated by its intellectual property. The company is more an ideas factory which aims to find effective treatments and licence their use by companies with the appropriate manufacturing and distribution set up. Croma has successfully completed Phase I trials in humans and is in the process of recruiting patients for Phase II trials. Exclusive EU and South American rights have been granted to the Austrian group, with Henderson Morley receiving a percentage of gross sales in these areas, but the company did not licence Croma in the US and Japanese territories - or the rest of the world. The company aims to seek further licensing deals once Phase II trials are complete.

There has been a slight snag in recruiting candidates for this trial - but it does not look like a serious problem in the greater scheme of things. On April 21st this year the company announced that Croma had encountered some difficulty recruiting enough patients for its trial of the treatment. Basically, the incentives for people infected with the disease to take part in the trial were not significant enough for people to commit to, what was potentially 6 or 7 visits to a medical practitioner for testing during the treatment. Chairman Andrew Knight reaffirmed his commitment to Croma as a partner, although he was disappointed completion of the trial had been delayed. Croma is attempting to recruit 140 people for the trial.

Growth strategy
The company is continuing to collect data on other disease areas relevant to ICVT and is working on improving formulation. In conjunction with its Business Development consultant, Dr Daniel Kirrcherr, the company is continuing discussions with potential partners for the dermal application of ICVT. Dr Kirrcherr is experience in the field, having held the position of business development director at US healthcare giant Johnson & Johnson.

The company aims to have an active presence in the ophthalmic market in 2006, with treatment for skin and genital warts as well as verrucae in the market by 2009.

Two areas of interest that Henderson Morley has taken a particular look at so far as product diversification goes, are Molluscum contagiosum; and as an orphan status treatment for respiratory papillomatosis (RRP).

Molluscum contagiosum is a relatively common condition in children, with an incidence of 2%-8% globally. There is currently no ant-viral treatment for these embarrassing skin lesions. Although this disease is associated with children, it is growing in prominence as a sexually-transmitted disease in adults because of its skin-to-skin contact transmission mechanism.

If a disease is rare and life threatening and there is no adequate treatment then it may qualify as "orphan status." The approval process for products granted this status is faster, cheaper and less clinically rigorous. Henderson Morley is examining whether the ICVT treatment could be used as an orphan status treatment for respiratory papillomatosis. This is a rare, unpleasant disease that results in the growth of numerous wart-like lesions in the respiratory tract.



Directors & Management
Andrew Knight - Executive chairman and main investor in the company. He is a successful entrepreneur with significant small business development experience.
Dr Ian Pardoe - Chief executive and developer of one of the company's antiviral candidates. He also has more than 15 years of medical practice experience.
Chris Pate - Finance director and qualified chartered accountant.
Professor Michael Fowler - Non-executive director and professor of biotechnology at Sheffield University. Dr Fowler was also a founding director of Phytera Inc, which assembled a diverse collection of plant species in culture and has industrialised their growth and manipulation in the laboratory before the company was sold to American company Galileo Laboratories.


Balance Sheet, Cashflow & Financial Results
The latest financial results for the company are from the 6-month period to October 31st, which showed pre-tax losses of 391,331 pounds, compared with losses of 377,365 in the same period in the previous year. Cash at the bank as of October 31st 2004 was 476,600 pounds. The company says it has sufficient funding through to the first quarter of 2006, so it should not be tapping the market soon for further funding. The company also has a relatively low cash burn - especially for one that operates in this company's field of operation - which currently stands at around 65,000 pounds a month.

In the 2004 financial reporting year the company reduced its loss per share to 0.36p from 0.4p in the prior year. Pre-tax losses increased, however, to 773,903 pounds from 684,793 pounds in 2003.


Shareholders
Chairman Andrew Knight owns 22.50%
Director Dr Ian Pardoe owns 13.40%.

The directors currently have options over 15.4 million shares. There are 322 million shares in issue.

The bulk of the shares are held by private investors.

Risks
The biotechnology sector by its very nature has a certain degree of risk for investors - and it has never been for the feint hearted. The success or failure of trials can make or break a share price and there are many regulatory hoops to jump through. That said, the risks associated with this particular biotechnology group are less than with most. The company has a relatively low cash burn for a biotech company - because there is no-large scale research spend needed. The company is working on the formulations and finding deals with partners, but the most significant part of the R&D has already been accomplished. The company is now pushing the products through the appropriate testing and regulatory systems and working on partnership and licensing deals. The company's management is also prudent on their fixed costs. This cost control is welcome in any business and bodes well for its expansion. There is a major advantage in the fact the two compounds used as the basis of the ICVT platform are widely know, widely used and have both been approved as treatments for decades. This eases any regulatory risk associated with the shares, but obviously does not eliminate it completely.


Potential market size
In order to make an assessment of the potential future revenues from this company, it is essential to look at the size of the market in which the company operates. There are, obviously, a number of assumptions made in the valuation, but these assumptions are deliberately conservative. So, with the platform development further along the approval line for a treatment for viral conjunctivitis, let's quantify the market for Henderson Morley's platform in this area.

It is very likely that you have suffered from an eye infection at some point in your life. It is a relatively common condition that is annoying and unpleasant - but is hardly a "serious" matter. Any sufferer would welcome a cheap and easy solution to the problem - but exactly how widespread is the disease?

It is very difficult to quantify exactly how many cases there are each year because the condition is not a notifiable disease, but a trawl through available data from a diverse range of sources can give a good indication of the number of potential cases of adenovirus-induced eye infections. A study published in the British Medical Journal found that 2%-5% of all medical consultations concerned the eye - with 44% of these down to infective conjunctivitis. A separate study in the same respected journal found that about half of these infective cases are caused by viruses. According to the Royal Society of General Practitioners and Royal College of Ophthalmologists, around 35% of all eye problems presented in general practice are infective conjunctivitis, with 13-14 cases per 1000 population each year.

This data allows for a rough calculation of the number of cases of viral conjunctivitis each year in the UK. If, conservatively, we use the lower figure from the study published in the British Medical Journal, then 2% of GP consultations concern the eye. Between 35%-40% of these infections are a result of infective conjunctivitis. Half of these infections are caused by a virus, so we can assume that around 20% of GP consultations that involve the eye are down to viral conjunctivitis. The average number of GP consultation in the UK between 1972 and 2001 was 4 per person. With the UK population standing at around 60 million people, the rough calculation below gives an idea of its incidence:

Percentage of consultations that involve the eye x incidence of viral conjunctivitis in eye infections x UK population
= 2% x 20% x 60,000,000
= 0.02 x 0.2 x 60,000,000
= 0.004 x 60,000,000
= 240,000 case per year in the UK

This is a conservative estimate. The incidence can also be calculated less conservatively as follows:

Percentage of conjunctivitis incidents that are viral x conjunctivitis rate per 1000 population x UK population/1000
= 50% x 13%-14% per 1000 x 60,000
= 6.25 x 60,000
= 375,000 cases per year in the UK.

Taking an average of the 2 figures indicated that UK viral conjunctivitis cases per year in the UK alone amount to just over 300,000 - and that's in the UK alone. There will be more cases if there is an epidemic of the infection and the global marketplace for such a treatment is truly massive.

Disease incidence assumptions and market penetration

Henderson Morley's scientists have worked out the incidence of each disease they are targeting based on available scientific data. The figures can be regarded as erring on the cautious side. For example, in calculating the incidence of genital warts, the company has only taken into account new incidences of the infection going forward, rather that taking into account the pool of several million existing cases. The table below gives an indication of the incidence of each disease that is being targeted by the ICVT platform.

Our discounted cash flow model gives the company a Net Present Value of 12.8 million pounds - significantly higher than the current 3.22 million market value.

Conclusion
Henderson Morley has a number of advantages over other biotechnology companies. The compounds used in its platform are widely known, studied and used. This should allow for ease of approval once the trial process is complete. The company's potential market is also massive, with treatments currently in the marketplace not showing the efficacy of the Henderson Morley treatment. Should the company meet its targets for licensing agreements over the coming years then the valuation above should prove conservative. There are the normal risks associated with buying shares in the biotech space, but the risks are easily identifiable - with few of them relating to the actual technology itself. The experienced management and tight cost control, bodes well for the future and, with the company currently capitalised at 3.22 million pounds at 1p, the shares are a definite speculative buy.

PpP: Thanks for posting these details. As a sufferer from conjunctivitus as well as an investor, I have tried to digest it all.
Perhaps I'm missing something here, and I'm not in any case up to speed in the medical world, but it seems to me that amid a great deal of bio-medico babble they are simply offering a mix of 2 well known drugs, digoxin and furosemide in a cream for treatment of skin problems. If so, I'm a little surprised that they have secured patents for it and would be very surprised if they were able to defend them, for some cynic is bound to pop up and say it's no different from rubbing the wound with crocus leaves. But stranger things happen in the investment world, and in any case I don't care whether it's a quack cure or a witches brew, if the punters go for it so will I. And they certainly went for it in a big way on Thursday. So I'm watching very carefully.
But my overview of the market is that the AIM stocks are mostly being by-passed by investors and so are drifting downhill. It means I'll probably be sitting on my cash for some time, maybe till St Ledger day.
sd.

Latest Update from GECR 7th Sept 2005

Henderson Morley, remains in discussions with potential partners over out-licensing its ICVT anti-viral platform. These licenses will bring milestone payments and ultimately, royalties. The company will keep the market posted on developments.

Henderson Morley has a number of advantages over other biotechnology companies. The compounds used in its platform are widely known, studied and used. This should allow for ease of approval once the trial process is complete. The company's potential market is also massive, with treatments currently in the marketplace not showing the efficacy of the Henderson Morley treatment.

Should the company meet its targets for licensing agreements over the coming years then this company is significantly undervalued. There are the normal risks associated with buying shares in the biotech space, but the risks are easily identifiable - with few of them relating to the actual technology itself. Newsflow on licensing agreement is the catalyst that is awaited and we understand that the company is in discussions with a number of parties. The shares have failed to perform since we initiated coverage but the fundamentals are unchanged and we continue to rate the shares as a "speculative buy."

Latest Update from GECR 1st Oct 2005

Henderson Morley is continuing its key discussions with potential partners over the out-licensing its ICVT anti-viral platform. These licenses will bring milestone payments and ultimately, royalties. As with any biotechnology these discussions and negotiations take time. This company's product has a huge potential market and the efficacy of the treatment against the standard viral infections it was developed for is not in doubt. The company just has to strike the right deal at the right price. The company released its annual report this month, which is available ton the company's website

Henderson Morley has a number of advantages over other biotechnology companies. The compounds used in its platform are widely known, studied and used. This should allow for ease of approval once the trial process is complete. The company's potential market is also massive, with treatments currently in the marketplace not showing the efficacy of the Henderson Morley treatment. Should the company meet its targets for licensing agreements over the coming years then this company is significantly undervalued. There are the normal risks associated with buying shares in the biotech space, but the risks are easily identifiable - with few of them relating to the actual technology itself. Newsflow on licensing agreement are the catalysts that are awaited and the company is pursuing every opportunity vigorously.

We continue to value Henderson's portfolio on a heavily risk-weighted basis at 12.8 million pounds, more than six times the current market capitalisation. On that basis our stance remains speculative buy.

Hello, there is quite of lot of buying going on today, must be news coming, something has been leaked IMO !

This level of buying does not happen on HML, so something is happening then.

looks like another of your sad tales here PpP.With a 30% spread you are asking too much for investors to punt

coeliac1 if they are all as sad as BSP today, I do not care.

The strange thing is more buys piling into HML today, I can find no reference to any tips having come up (the last time it got any large buys was the 19th May when GECR started coverage, see post 1)

Will keep looking as have a massive paper profit from BSP today so in a good mood !

Henderson Morley PLC
28 October 2005

FOR IMMEDIATE RELEASE 28 OCTOBER 2005

HENDERSON MORLEY PLC
(AIM)

Business: Drug Discovery Company

Issue of Equity
&
Patent Update

Henderson Morley plc ('the Company') announces that the Board has, today, issued and allotted, conditional upon Admission, a total of 50 million new Ordinary shares through a Placing to an investor at a price of 0.5p per share, raising 250,000 for the Company. The total number of shares in issue is now
383,928,632.

The purpose of this Placing is to provide the Company with working capital to
continue to invest in its research and development and intellectual property.

Application will be made for the new shares to be admitted to AIM and trading in the new shares is expected to commence as soon as practicable.

The Company continues to invest in patents for the further development of its
platform technology, ICVT, and has recently received notification that the
Company has been granted a second EU patent for the ICVT platform.

Several new patent applications have been filed, including patents addressing
specific product formulations, improved and enhanced potency of ICVT and for the use of ICVT in completely different (ie non viral) disease areas addressing
significant unmet medical need.

--ENDS--

Copies of this announcement will be available free of charge to the public at
the Company's registered office at Metropolitan House, 2 Salisbury Road,
Moseley, Birmingham, B13 8JS and at the offices of Brewin Dolphin Securities
Ltd, 34 Lisbon Street, Leeds LS1 4LX for 14 days.
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
Maxine Barnes Mobile: 07860 489571
Dominic Barretto

Notes to Editors

Ionic Contra Viral Therapy
Developed in-house by Henderson Morley, ICVT is an innovative compound for
treating virus infections. It exploits the little known finding, that many of
the biological processes involved with virus DNA synthesis are sensitive to
local potassium ion concentrations.

ICVT uses a proprietary combination of two established drugs currently used in
cardiovascular medicine that have no prior use as anti-virals. The component
drugs used in ICVT cause depletion of intracellular potassium and inhibit the
replication of DNA viruses, while normal host cell metabolism and function is
only minimally affected. By combining two compounds that act on ion transport in different ways, the antiviral effect is enhanced. This combination therefore
offers the prospect of preventing viral replication with little or no adverse
effects.

The anti-viral effects of the two drugs in ICVT are synergistic. The effects of
ICVT on host cell metabolism have been measured in a variety of cell lines and
the rate of cell metabolism is unaffected by prolonged incubation with ICVT.
Pilot human studies have not demonstrated any local or systemic toxicity when
used at anti-virally effective doses.

Additionally, the component drugs used in ICVT have a long history of being
widely co-prescribed in the treatment of cardiovascular disease. As such, ICVT
offers potential in the treatment of a range of viral infections for which
current therapy is inadequate, such as adenovirus.

Further information on Henderson Morley plc can be accessed through the
Company's website at www.henderson-morley.com

This now clears up working cap for an extended period of time and should allow them to get something in place in terms of revenue generation.

HML playing up today, up 28%.

Another false dawn or is some good news finally just around the corner ?

It was a 3.5 million buy at way over the offer that made HML rise today, someone is confident of things to come.

More buys through and moving up again, you have to think something is happening now in the background.

Aim listed drug discovery firm Henderson Morley's recent rude market health continued, up .1p to .9p on heavy trading, after suggestions it was close to securing a licensing deal with a pharma company for one of it's anti-viral drugs.

Todays Daily Express. Market Report. David Shand. City and Business. p70.

Taken from there website;

As a drug discovery company, Henderson Morley does not have the infrastructure to take projects through the clinical trial process without a commercial partner.
Once certain in-house milestones have been achieved (typically in-vitro testing in the Company's own laboratories) partners will be sought to take a commercial licence for the technology.
This will enable Henderson Morley to continue to develop future opportunities whilst using the infrastructure and potential distribution of commercial partners.

Licensing opportunities are available for the following applications of ICVT:

Ocular infections

Dermal Infections

Veterinarian applications

Vaccines

In summary we now have the Express tip

Aim listed drug discovery firm Henderson Morley's recent rude market health continued, up .1p to .9p on heavy trading, after suggestions it was close to securing a licensing deal with a pharma company for one of it's anti-viral drugs.

13th Nov 05 Daily Express. Market Report. David Shand. City and Business. p70.


From their website;

As a drug discovery company, Henderson Morley does not have the infrastructure to take projects through the clinical trial process without a commercial partner.
Once certain in-house milestones have been achieved (typically in-vitro testing in the Company's own laboratories) partners will be sought to take a commercial licence for the technology.
This will enable Henderson Morley to continue to develop future opportunities whilst using the infrastructure and potential distribution of commercial partners.

Licensing opportunities are available for the following applications of ICVT:

Ocular infections

Dermal Infections

Veterinarian applications

Vaccines


And from the recent 28 Oct RNS;

The Company continues to invest in patents for the further development of its platform technology, ICVT, [b]and has recently received notification that the Company has been granted a second EU patent for the ICVT platform.

Several new patent applications have been filed, including patents addressing specific product formulations, improved and enhanced potency of ICVT and for the use of ICVT in completely different (ie non viral) disease areas addressing
significant unmet medical need.

I hope that the rumoured deal is for this significant unmet medical need area, but there is plenty of wood on the fire now, just waiting for the flames to come through the smoke.

Latest update from GECR 11th Dec 05;

Henderson Morley is continuing its key discussions with potential partners over the out-licensing its ICVT anti-viral platform. The company undertook a further fundraising on October 28th, raising 250,000 pounds at 0.5p a share to provide working capital for this purpose. This should be sufficient for some time as the company has a low cash burn of around 40,000 pounds per month. Once licensing deals are struck, these will bring milestone payments and ultimately, royalties. As with any biotechnology these discussions and negotiations take time - but the product is good and it works. The antiviral treatments have great scope for becoming over-the-counter medicines and the company just has to strike the right deal at the right price. We continue to believe that the potential of the Henderson Morley portfolio is not discounted in its share price and that the stock will be re-rated significantly when a licensing deal is announced.

Latest Update from GECR 8th Jan 2006

Henderson Morley is continuing its key discussions with potential partners over the out-licensing its ICVT anti-viral platform and undertook a fundraising in October, raising 250,000 pounds at 0.5p a share to provide working capital for this
purpose. This should be sufficient for some time as the company has a low cash burn of around 40,000 pounds per month. Once licensing deals are struck, these will bring milestone payments and ultimately, royalties.
As with any biotechnology operation these discussions and negotiations take time - but HM's antiviral treatments have great scope for becoming over-the-counter medicines and the company just has to strike the right deal at the right price.
Henderson Morley is in the process of exploiting its new, patented technology that could revolutionise the treatment of some common diseases - and some not so common.
The company is currently focusing on the Human Papilloma Virus (HPV) - a type of virus that is responsible for non-life threatening conditions such as conjunctivitis, skin warts, genital warts and verrucae, but also more serious conditions such as cervical cancer. The platform actually stops viruses from forming within an infected cell be affecting its salt balance. This is a new way of
targeting virus activity and its products will be unique in the market place. The potential revenues generated by its treatment pipeline are enormous and the company is carefully seeking licensing partners to ensure that it could fully exploit this revenue stream.
Management is confident that the right deal can be struck at the right price and are continuing to work towards this goal. The stance remains "speculative buy."

.

Interims out today, there is some juicy news though, this new use sounds good.

Business Review

Research continues in the anti-viral and vaccine pipeline. The technology known
as PREPS and L-particles, which was originally developed by the UK Government's
Medical Research Council Virology unit in Glasgow, is owned by the Company.
Following independent research in the USA, new and potentially valuable
applications of this technology have been discovered in the multi-billion dollar organ transplant rejection market. A new patent has been filed for the new use of PREPS and L-particles as immunomodulators, with potential application as a treatment for diseases of an overactive immune system such as Rheumatoid Arthritis, acute and chronic organ rejection and connective tissue disorders. As a result, the Company has retained a US based biotechnology licensing consultant with a view to exploiting this potential application.

The Company now has 25 granted patents in respect of its ICVT technology
platform with a significant number of other patents filed and under examination
by the patent authorities.

Any ideas on the volume and rise today PP ?