In my opinion I think you should all calm yourselves and remember Masila's notes from the June 30th meeting. Here's part of what she said in her notes:
There are at least 6 compounds that they could take to trials, but ZEN-3694 will be the one they will focus on to bring to clinical trials by end of year. They believe all have superior profiles to what competitors have right now. My take was that it focused in the oncology area and will be addressing solid tumors.
Lots of activity at Bio conference in Philadelphia last week. Immunotherapy is hot topic. Priming of immunotherapy is done throught BET inhibition, so they believe they are in a great spot to do combo trials with others in this space. Work together synergistically.
Have run 3694 in combination with about 30 other compounds and have found which work great, good and not so good. Now talking to major pharma companies about how to leverage this.
Hoping to list on NASDAQ by end of year, but would want to time it with some "major" event (eg partnering/co-developing with someone or licensing Zenith somewhere, eg China). This would be the signal that might make it happen, but right now they have enough funds (burn rate 500K/mo) to last them for a while. Don said they have great expectations for something to happen before end of year, especially given what they are learning about how their compounds work.
May split company into Royalty portion (getting royalties from Resverlogix) and a development company. This will likely be a topic at the AGM in Sep. If a major pharma comes in, he doesn't really want others to benefit from the royalty stream. Those that have shares in Zenith right now are the ones who should be the beneficiaries.
He believes this royalty stream will be a very significant number. For example, just from the China deal, there could be $300M in royalty stream. If things go as hoped in Resverlogix, this could be $1B/year. Divide that among the current shares outstanding (say 100M) and you've got a fair chunk of money coming your way every year. If I got $10/yr for every share I owned, I'd be a VERY happy camper. I can wait a few years for this to happen.
May also wind up spinning out other companies for different indications...(underline!)
I think that there could be a deal already in the works..."they want to time it with some major event". I know what I said sounds like a big dream but maybe if it's true, it might explain DM's attitude that I've heard some people complain about.
JMOPVLee
