Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Another company exposed to the expiry of patents – and who therefore could be looking for a licencing deal for SDC1801 - is Bristol Myers Squibb. They potentially could be losing exclusivity soon of Revlimid, Eliquis and Opdivo.
• Revlimid has reported global sales of $12.1 billion and its patent expiration is said to be by 2026.
• Eliquis with reported sales of over $9 billion has a patent expiration between 2027 & 2029.
• Opdivo, with reported annual sales of over $6 billion has a patent expiration dated of 2028.
"Patent Cliffs" are becoming the big issue for the major players in our sector.
Bristol Myers Squibb could therefore be one to watch regarding a partnership for SDC1801....
Good luck, Brighty
Yes $47 Million for a licencing deal would would appear to be the industry average. As you point out Evotec secured $50 Million upfront from BMS last year. The royalties element of up to £4Billion was also interesting as part of that particular licencing deal. If that happened here we would be all smiling!
The big opportunity for Sareum now that we are a P1 clinical company is that most license deals by big pharma happen at platform and discovery stages.
* The average upfront payment for licencing Discovery Platform drugs in 2023, according to JP Morgan, was $47 Million and the average Preclinical licencing deal was $55 Million.
* Some of the licencing deals over the last 12 months, see below, have been incredible. Could SDC1801 be next?
* Akeso was paid $500 million upfront by Summit Therapeutics in 2023 to in-license ivonescimab. Additionally, the partnership outlines a potential deal value of up to USD 4.5 billion.
* Alnylam received an upfront cash payment of USD 310 million from Roche in 2023 to co-develop and co-commercialize Zilebesiran. Additional development, regulatory, and sales milestones could potentially elevate the deal value to USD 2.8 billion.
* Evotec was paid $50 Million upfront in 2023 by Bristol Myers Squibb. Tiered royalties on product sales further underscore the financial commitment, resulting in USD 4bn potential deal value.
* Kelun-Biotech was paid an upfront $175 Million by Merck in 2023 to co-develop preclinical antibody-drug conjugates. Future development, regulatory, and sales milestone payments, which could total up to USD 9.3 billion.
So, if we take JP Morgan's $47 Million - $55 Million average for a pre-clinical licencing deal in 2023 that bodes well for Sareum's SDC1801....
Good luck, Brighty
Another great day of rises
The added bonus is that AIM company is using their A.I technology to help Sareum lead assets . There is avery good chance SAR trials will be positive as the success rate of PYC tech is very high and work with Merck, Sar etc
Those that have been shareholders in Sareum for many moons will know that:
1. In combination with Dexamethasone the SAR science works.
2. In combination with AstraZeneca's WEE1 inhibitor Adavosertib the SAR science works.
3. In combination with Merck’s Keytruda the SAR science works.
4. In combination with Eli Lillys Gemcitabine the SAR science works
and we know
5.SDC-1801 reduced the levels of cytokines associated with Acute Respiratory Distress Syndrome (ARDS) in human lung cells infected with SARS-CoV-2 and demonstrated a profile that was superior to the anti-inflammatory steroid dexamethasone and similar to the JAK1/JAK2 inhibitor baricitinib.
i.e.IMO it is a no-brainer that very soon a major pharmaceutical company is going to do a licencing deal with Sareum based on the above information. Finance might not be the BOD's forte but science certainly is.
The takeaway for me has to be that there were 15 Phase I deals signed in 2023, double compared to 2022. Very encouraging to read that. With patents expiring soon at many of the major pharmaceutical companies they will be looking to on-licence new candidates. That has to be good news for SDC-1801 and therefore Sareum's shareholders. Topline data is out soon. It could be a game changing few weeks here.
To confirm that the average upfront payment for licencing Discovery Platform drugs in 2023, according to JP Morgan, was $47 Million and the average Preclinical licencing deal was $55 Million. That's why we are invested in Sareum and in this sector.....
Good luck, Brighty
The holy grail is obviously a takeover of Sareum for £1 Billion + but in the short to medium term a licencing deal for SDC1801 with a major global pharma - not a Sierra style deal this time - is the most likely. What are the actual chances of this happening if the SDC1801 data from Australia proves as good as we expect. The answer is pretty good if you read the latest J.P. Morgan report on licencing deals in the pharma sector. In summary:
* There were 495 R&D partnerships and licensing agreements in 2023 in our sector.
* There were 115 life sciences R&D licensing agreements signed in the third quarter of 2023.
* There were 108 licensing agreements in the fourth quarter of 2024.
* The volume of in-license deals in the preclinical, Phase 1, Phase 2 and Phase 3 stages has remained steady.
* In terms of total deal value sizes, that equated to $8.2 billion in total in upfront cash and equity licencing transactions on 108 deals in Q4.
* Big pharma continues to pay well for clinical-stage biotechs with meaningful growth in upfront payments for Phase I assets
* Phase I biotechs also enjoyed a hefty 42% increase in upfront payments year over year.
* 15 Phase I deals were signed in 2023, which is almost double compared to 2022.
In summary, as JP Morgan states, "Big pharma continues to pay well for Phase I assets". Sareum operates in a multi billion sector. Bring it on.....
Good luck, Brighty