Good article in Shares entitled Biotech Blockbusters (14th Jan 2008). It takes you throught the development life-cycle and a good introduction for anyone not familiar with the sector.

They highlight three companies (my immediate reaction was to compare with Alizyme, a long-time favourite of mine). The companies are:

Antisoma Cap. 103.8m cash 61.4m
Novartis deal for cancer drug worth up to $890m. Entering Phase III this year: take 18 mths then follow up trials 2 and a half years. Handling three other drugs themselves, with first reporting Phase II this year.

Protherics Cap. 171.6m cash 46.9m
Revenues from existing drugs of 14.8m. AstraZeneca deal roth up to 195m plus royalties. Expanded Phase II trial starting this year. With Phase II report on another drug due this year.

Oxford Biomedica Cap. 99.4m cash 42.5m
Sanofi-Aventis deal could be worth E518m. Due to report Phase III trials in 2009. Other early Phase drugs.

They stress the essentials as being: (a) More than one promising drug; (b) Strong management team with deal making potential; (c) Solid cash balance - visibility of funding for next 12-18 months at least.

Each of these companies has landed deals at earlier stages than Alizyme, drawing attention to question-marks under (b). Stronger in cash than Alizyme but not really a problem. Alizyme score as being two or three years ahead with two drugs reporting Phase III this year, including a potential blockbuster in Renzapride, and Cetilistat, another blockbuster, entering Phase III when a deal has been completed.

Its striking how much all of these companies have come back in the market. AZM's 80m cap. doesn't look out of line. The key, of course, is a deal. A deal along the lines negotiated by the above would put AZM well ahead because of the nearness to marketing and licensing fees and thus lower risk of failure.

It could help each of us to open a dialogue on the topic.

Hoping to get some relevant comment! Come on guys and gals!

Eric