Member Info for dippfs

Q if dilution is to be 100 / 200 / 300% will there be any value in shares already held

SS totally understand the question but not at liberty to discuss. Clarity when announced.

Q Amanda horton, porton down. Big deal to shareholders, UK govt interest. What happened

RM invitro testing, covid. Stay focussed on broad spectrum

Q but UK government is interested

RM covid one of the viruses we expect to bump into. We have made a marker with government

so if another pandemic happens they know SNG is there. Covid mountain is not the way forward.

One of the arrows - been trying to get into platform trials but they are all struggling. Perhaps

worked out for the best that we didnt get involved.

Q accounts, gross value of product. 118M losses on balance sheet. All shareholders money,

inventory valued at NIL. Will it be factored in what we have contributed.

SS we have always said shareholders will be given the opportunity to decide if they want to

participate or not in next phase of development. Yes 118M of shareholders funds consumed,

when we ask you to stump up again we will give you the basis to make a decision

Q yes but will you make sure what we have already invested is not lost

SS that is self evident. Point taken. You will all be very happy to proceed on the basis that there

will be no “warrants further investigation” at the end of this trial. Which has happened before

every time.

Q 100k per patient over 300 patients is £30M. Plus £4 every 6 months over 3 years to keep lights

on. £50M funding at current SP would be 1B shares. No effort made to raise SP from 4p.

SS we cant comment on this but we understand your point

Q ACTIV was fully funded US govt, BARDA. UK money, keep talking about bio investment. Are

you going for governmental funding.

SS understodd. £50M is not our figure. We understand the points made. Youll have to wait and

see.

Q any funding would reset SP in the market so it also brings into question timing of any raise

SS we dont dwell on hypothesis, you should be comfortable over the last few years we have

explored all funding options. Magic money tree is not there.

Q is funding mapped out all the way to P3. Investors have been patient. Dont want time wasted

between P2 and P3.

RM that is vital and we have done this properly. Value will increase throughout the process and

you never know when our data will get us an offer and at that point we will sit down and decide if

to recommend. Some companies kept on going after covid but we are lucky we can look at other

viruses.

Q since today was a waste of time can we have an EGM so we can ask Qs we should have been

able to ask today.

SS yes thats fair.

Q trial design, early use problems with cohort, biomarkers. Always ended with warrants further

investigation. Autoantibodies, cassanova, where is that, anything from universal, IL33 / CRP

RM speak to us after. Not actively hunting these down but they will be there. We dont want a 3000

patient trial so it wi

One thing I can tell you is what we present in due course you will be given the

opportunity to decide if you want to participate, and we hope you share our confidence that trial

is structured to give the outcome we are all looking for. An investigator led trial could have taken

up a full year and we would have ended up nwith nothing of any substance. To take the

programme forward this needs to happen. Announcement will be imminent but not quire ready.

Q can you confirm what is meant by the word imminent

SS 6-8 weeks

Q dilution, can you rule it out

SS - it is clear from interims there will be a capital raise. There is no debate about that. The

structure is being finalised at the moment.

Q whats your thought process

SS make sure we have sufficient capital to see the trial through to getting a result. At least we will

know. No point in anything less for shareholders. We are all in the same boat. Existing

shareholders will be invited to participate. Beyond that I cant say anything. Clearly all

stakeholders interests need to be balanced up and we are going through that process.

Q you said 6-8 weeks what happens when that comes and goes. Shareholders taking a big hit

year on year. Large renumeration packages. OK for you but for us it goes on and on. Every time

we come there is a different plan.

SS I dont see a question there but point taken

Q how confident are you this plan will work

SS high degree of confidence you will have something that makes sense. Cant say any more

Q 5 years left of patent. Worrying. Looking at horizon, IP a critical part of what you are trying to

do.

A time taken for a P2 reasonable but value uplift gradual wont be all at P2/3. Intermin analysis will

help. Will bring us back to the zone of where we should be in terms of the market and potential.

Q interim analysis will you be able to release data

RM in terms of drug X placebo Y no but we can talk about the result

Q this happened in sprinter but still failed - how can we be sure

RM be patient and you will get an answer to that. Good question and I like the knowledge of

shareholders.

Q why is AGM in October when due in June. No anointment in the interim nothing to talk about

today. Why are we here

SS, 2 criteria is discussed, board changes and trial plans. Would have liked to have discussed

more today in an ideal world but took longer. Apologies.

Q high viral load / diagnostics tool - will it be widely available globally / is it a barrier

RM it will be an off the shelf product we are using in a different way

Q do we have enough drug

A plenty of bulk product

Q LOXL2

A deal still in place check their website for updates

Q comms appalling nothing other than interims

RM when trial underway news flow will increase

Q comms dire / investors in the dark

RM I dont want to create a yoyo. Large trial will answer the big questions. One of the arrows in the

air is what we are looking to do now.

SS board in same boat as investors

SS - I have wanted to retire for a while but I have always said I wanted 2 things to take place

before I did. 1) a clear development plan which has been stress tested. 2) my own replacement in

place. New chairman has 30 years experience mainly in respiratory virus.

Few words from new chairman - Has been following SNG for a few years. 3 drivers as to why he

joined. 1) asset / mechanism / potential / great science 2) programme - significant unmet medical

need 3) execution - focussed team / needed disciplines / right people and expertise. 32 years

experience in UK / Europe / use Pharma and biotech. Respiratory and drug delivery focussed.

Early clinical though late state and regulatory approval to market.

SS - AGM timing, it is late as have been working hard to get the board right and funding. Will

disclose train and finance package relatively imminently.

RM - known Mark a long time. Perfect person for SNG. I cant say anything that is not in the

interims. MV trial high unmet need / commercially attractive / whole range of viruses not just

covid. Near absence of anti virals, only one is remedes but even that is covid only. Mortality

25-40%. ICU USD20k but 50k when on a vent. Anything that reduces time or death will be very

valuable. How to find patients. Self selected as on vent but need to avoid non virus people. 12

months working on diagnostics to exclude patients. Aerogen working with aerosol needs to go

down tube, taken 18 months in the lab to ensure aerosol survives the vent, settings are all now

fixed. Universal - going well, a few markers for ultra high risk ICU. Confident in data. All previous

trials poorliest patients produced strongest results.

SS - open to questions

Q - what is the commercial model

SS - unable to release forecasts. Check broker notes and publicly available information

Q small trial is now a large trial - why

SS - Next phase of development, drug needs best chance to prove itself. Honing down patients

to give best chance of a result. Small trial wouldnt give a result in mortality or lentgth of stay. All

conversations came to conclusion that if we do this we might as well do it right. Small

investigative trials quick and cheap but would not have produced required data. P2 linked to P3

more attractive to BP and gives larger value uplift.

Q - will trial be led by synairgen or investigator led ?

RM - 100% synairgen

Q - large trial say 300 patients @ £100k each in an MV trial would this be accurate

RM - cant comment

Q asking for a ballpark

RM - we will break cover with trial design and finance but not today as they will come at the same

time.

Q - year after year big promises no action

SS - this is not totally different TBF as we were talking about MV last year for investigator led trial.

There is continuity between this year and last year. We would have loved to release this morning

so we could discuss. We are close to it and a number of moving parts with finance as you know,

but we are clos

I also have my full notes from the AGM which I havent shared on LSE ( have shared on telegram ) happy to share on here if anyone is interested ? Appreciate its a bit late. Of course very similar to what has already been shared on here but a couple of extra bits, nothing major.

RM also said “one of the arrows in the air is what we are looking to do now”. I guess we will have to wait and see exactly what arrow this was eh.

If you look at the AGM voting numbers it would appear basically nobody voted except TFG. So my assumption based on this observation would be that they are supportive of whatever is going on.

The EGM was requested by one of the shareholders at the AGM. The reason for this was because discussion at the AGM was limited to information disclosed in the interims and the question was asked if we could have an EGM once the trial and funding package was announced ao shareholders will have the opportunity to discuss this. SS and RM agreed to this request. In this context it should go without saying that the trial and funding package ( expected 6-8 weeks ie anytime now ) will come before the EGM.

I think the departures have been put to bed at the AGM. SS has wanted to retire for quite some time and he was waiting a) for the way forward to be confirmed, and b) to find his replacement. It's probably a good signal that he is going now as this means he feels the way forward is confirmed. PM is going because he wants to focus on the early lab work that he enjoys. They played it all down at the AGM so let's not read more into it than what it is ie normal staff turnover in a business.

The EGM will only be after the trial and finance package have been announced. It was requested at the AGM so shareholders would have the opportunity to discuss it since we could only discuss the interims at the AGM. But it seemed legit to me, I don’t have any reason to believe it won’t happen. I suppose the only reason it wouldnt happen is if the trial and funding doesn’t go ahead for some reason. This seems unlikely though as the mood seemed to be that it was pretty much done.

It is very difficult to predict a SP from here as we dont have any details of the trial / costings, and we have no idea what affect the upcoming dilution is going to have. Having attended the AGM myself my personal opinion is that RM was talking about his arrows that he has previously been throwing in the air, and he said “one of these is what we are looking to move forward with”. And he also later on asked to be "judged at the EGM" with regard to his own personal performance. I took these 2 quotes to mean that he probably has a good deal for shareholders up his sleeve. I have always felt that given the market cap they cant raise the amount needed from a capital raise alone. I still think they have some form of grant, or TFG have agreed to step in somehow, maybe both, with a top up from a capital raise. This aligns with one of the arrows landing, and aligns with RM being judged favourably at the EGM.

The board were talking about big Pharma may come in the future if their data is good with an offer, and other comments along those lines. I personally dont think there is another big Pharma involved in funding this deal, otherwise they wouldnt be talking about them coming in with an offer in future.

Just a few points from my notes in response to below. Funding and trial package will come together at the same time in one RNS. When asked about why he should keep his job in the resolutions, and then pressed about the steady decline of the share price to 4p providing no value to shareholders which is his job, RMs response was “judge me at the AGM”. So my thoughts for what they are worth is, yes there is going to be dilution, but this is part of an overall funding package which will be beneficial to existing shareholders as well as new.

Bob ive been reading up on this VPAG programme / funding. The £400M of investment is paid for by pharmas that are members of the scheme in the form of a levy. The way I read this is that the government arent actually putting any of their own money in. So unfortunately im not sure if your theory about the OBR / budget timetables could possibly be correct - the government dont need to budget for this as they arent paying for it.

If we're getting UK and BARDA money why would we need a BP involved at this stage ? Might as well hang on until this phase 2 is done to get better terms.

Although a quick google seems to indicate that you secure the funding AFTER a protocol is approved so I recon this is probably where we are at. Hopefully we get some more details before the AGM.

Xviolet that would be better - they have built regular reviews and an interim analysis in so that would make sense. If interim analysis was good the share price would likely re-rate making it much easier and beneficial for a raise. I don’t know how it would play with regulators, some have mentioned they won’t sign off on a trial unless it is fully funded ?

I was just surprised 1) that they haven’t got it 99% signed off by the regulators already, if funding is the only thing holding it up they can surely get everything else agreed. And 2) why tell investors winter 2024 when that could be up to a year off !

“Subject to financing, we believe the phase 2 trial is likely to be initiated over the next 6-12 months”.

I find the above quote from the broker note interesting, it’s certainly more winter 2025 than winter 2024. And if this is correct it also basically wastes 4-8M of precious capital on keeping the lights on for a year.

Interested to see people’s thoughts on this.

I surely hope there is something lined up. RM was talking about a LARGE phase 2 trial in this mornings RNS, previously the word enhanced has been used. I don’t see how they can plan something this big without funding. Without funding and at the current mcap / share price you would surely plan something smaller.

Existing investors being able to participate 100% means a share raise is coming which at current share price is massive dilution for existing shareholders. I don’t know what % of votes Richard marsden needs to stay in his job but I recon it’s going to be close. He isn’t safe at all !