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Cairn’s Expertise in Niche Sectors (Biotech/Life Sciences)

• Cairn Financial Advisors has a strong focus on biotech and life sciences, sectors in which Faron Pharmaceuticals operates. By appointing Cairn, Faron is likely seeking a broker with specialized knowledge and industry relationships in the biotech space, which could be crucial for securing a strategic partnership or collaborations with other biotech companies, pharmaceutical giants, or even venture capital firms.

2. Personalized and Focused Approach

• Cairn is a boutique firm known for offering a personalized and hands-on approach to its clients. This could be an attempt by Faron to ensure that its specific needs are addressed in any potential deal. A smaller firm like Cairn may be able to provide Faron with more dedicated time and resources to navigate the intricacies of a partnership negotiation, especially in a critical period like a Phase 2 data readout or when preparing for strategic alliances.

3. Partnership and M&A Advisory

• Cairn’s reputation in M&A and capital raising could signal that Faron is seeking a partner or preparing for a takeover. A partnership, especially in oncology or immunotherapies, might require specialized knowledge of structuring deals, valuation, and strategic fit—all areas where Cairn excels.

• If Faron is preparing to negotiate a collaboration or license agreement for its assets (such as Bexmarilimab), Cairn could play a crucial role in guiding the company through those discussions and ensuring favorable terms with potential partners.

4. A Change of Focus or Strategic Direction

• Parting ways with Peel Hunt, a larger, more diversified broker, might indicate that Faron wants to focus its efforts on specific transactions in the biotech and life sciences space. If the company is looking at partnering opportunities or positioning itself for an acquisition, working with a firm that has a deep understanding of clinical data, regulatory hurdles, and specialized investors (such as those in biotech and rare diseases) could provide a more tailored and effective strategy.

5. Faron’s Stage in Development

• With Faron having promising Phase 2 data for Bexmarilimab, now may be an ideal time for the company to explore partnerships with larger pharma companies or to out-license its assets. Appointing Cairn as the sole broker could be a way to signal its seriousness and commitment to finding a strategic partner or securing a deal with a larger player.

6. Faron’s Strategic Moves

• Bexmarilimab has shown significant promise in clinical trials, and now that Faron has completed its enrollment for relapsed/refractory MDS patients and is heading toward Phase 2 readouts, securing a partner for further development and commercialization could be part of the strategy.

• A partnership could be particularly important in oncology, where development costs are high and partnerships with larger pharma companies could accelerate clinic

In the US, 20,000 new cases are reported every year in the US, making MDS one of the most common blood cancers

Approximately 25-30% of MDS patients have high-risk disease. The disease can progress to high-risk MDS and secondary AML in approximately 30% of cases. Although deaths can result from AML, mortality in MDS patients can be due to bleeding or infection without AML.

(Taken from Leukaemia and Lymphoma society website, so a conservative 25% is 5000 per annum).

So just the US alone is a conservative 5000 patients, each paying the Rytelo price, 25,000 per month = 5000 x (25,000 x 12- 300,000) = $1.5 B USD peak sales.

(Rytelo price information taken from Capital Markets day presentation- market research segment with Ralph Hughes).

Conservative Industry multiplier 4-6 x sales to value the drug. (Can be anywhere up to 10x for new and rapidly expanding sales drugs).

Conservatively, 4 x $1.5B USD = $6Bn per annum.

If we get positive data on the frontline, given other drugs are highly toxic and just aim to destroy blasts, whereas Bex unmasks the immune system to kill blasts and boost natural immunity, potentially leading to cure with Allogeneic Transplant, Faron have most definitely hit the jackpot bearing in mind this is just the USA and just HR MDS.

We also have a super expedited pathway to approvals, and will likely blow other Hemo treatments out of the water in AML, CMML, B-ALL (B-cell acute lymphoblastic leukemia), BCL (B-cell lymphoma), and TCL (T-cell lymphoma/leukemia), which are Clever 1 positive & would likely be effectively treated with Bex.

(Information taken from bio bank data, capital markets day presso).

Then we obviously have solid tumours, and autoimmune diseases. (Matins trial, & recent RNS on soluble clever-1). And are soon starting a combo study at no cost to ourselves being an investigator lead study, in lung and melanoma which should solidify the MoA in a sub-set of difficult to treat solid tumours- with 1st data before year end).

It would be good to see us get an absolute monster License Deal globally for MDS ($1bn upfront and 60/40 revenue split with all subsequent trial funding taken care of), where incorporating just Europe and Japan would x4 the US market size in MDS and then we could do the smart phase 2’s with the LD cash and wait for the MDS sales cash to start rolling in as we take this to its full potential, doing LD’s upon proving the added indications.

(Novartis recently paid $1bn upfront on roughly those terms for a Huntington’s disease oral drug which would have nowhere near the pricing power of an immunotherapy).

Either that or a mega buyout in the near term, which I can’t see being less than $6B - 12B usd, given the aforementioned, around £44- £88 per share, a broad valuation range which I believe factors in current cash position.

I put an order in for another 5000 at £1.75 limit over the weekend, which was just executed…

The figures are just too good he

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