I went back and reviewed the slides and the comments made by the Zenith CEO from the June 2016 webcast. 

Here are some of the things that I noted in order to see what had changed since then. 

For instance, they have delivered on the “enterprise value” and the “second line treatment” end...but failed us on the long touted IPO and deal ends. 

Hope you can follow this. 



June 20, 2016 Zenith Quarterly Update 



Slide 3 

Status: Unlisted. Possible US market IPO when conditions permit. 

Cash Raised: 2014-2016 Approx. US$44 MM @ $1.00 USD per share. 

Enterprise Value: est. $125 MM 

Shares Outstanding: 125.2 MM. 134.0 MM fully diluted. 

Cash Burn: $2 MM per quarter - current 



Slide 14 

Opportunity for ZEN-3694 

* 2nd line single agent treatment, KOLs agree that there is no effective 2nd line treatment 

* ~60,000 2nd line treatment eligible patients in US/EU alone 

* Expand into 1st line treatment in combination with enzalutamide or abiraterone 



Slide 15 

* 1st trial PK and safety data Q4 2016 

* Proof of concept (looked like Q1 on the timeline???) 



Slide 19 Market Capitalization Valuation Rationale and Milestones 

* Zenith - $125 MM (est.) 

Comment made: will grow this fall when we start revealing some of our PK and safety data 



Slide 20 Zenith Milestone Targets 

Below are the ones that were not ticked off: 

2. Clinical Targets 

* Reach proof of concept by 1H 2017 

* Expand to include combination therapies 

3. Corporate Development 

* IPO on the NASDAQ 

* Regional licensing in China and/or other countries 

* Co-development partnering 

* New BET Bromodomain opportunities 

Additional comments that were made: 

*** Still very interested in an IPO on the NASDAQ 

*** Regional licensing - we do expect to attain this year 

*** We are in discussions about codevelopment and partnering 



Some of the things that caught my eye re the December 15, 2016 AGM Webcast: 

Slide 3 

F6 Note: Here's the big change! The Enterprise value (est.) was indicated to be $250 MM. Do the math. That comes out to be $1.865 per share, up from $1.072 in June. 


Slide 19 "Target modulation shown" - was highlighted in bold print! F6 Note: There's our "below the radar" news release! 



Nice quick read for you: 

Semin Oncol. 2016 Aug;43(4):446-52. doi: 10.1053/j.seminoncol.2016.06.002. Epub 2016 Jun 14. 

Establishing proof of mechanism: Assessing target modulation in early-phase clinical trials. 

https://www.ncbi.nlm.nih.gov/pubmed/27663476 



Slide 20 Target Modulation Measured in Clinic 

Robust target modulation for 24h 

F6 note: Surely they could have given us small retail guys a bit more to chew on, eh Dart and Li Li? 



Slide 23 Two sites, UCSF and MSKCC, open for enrollment. F6 note: Looks like PI's Dr. Small and Scher want to definitely take the lead on this one. 



Slide 32 ZEN-3694 Q1 2017 for US patent F6 Note: Did this throw off their timing re a potential "regional deal" being announced? 



Two quotes that I really liked during the presentation...just wish that he would have said a lot more in an official news release about what they’re seeing at the clinical level: 

1. Re target modulation: 

“We are seeing some pretty good activity. 

So, this is the target modulation. This is actually on our lowest dose, so this was on our starting dose and we’re seeing these oncology genes being positively affected in very short periods of time. 

So, we show the pre-dose four hours and twenty-four hours. We’re already having that kind of impact on those genes, so we know we’re hitting them! 

We also know that nobody else in the field has been able to show this, so we’re pretty excited about that!” (McCaffrey) 

2. Re licensing opportunities in China: 

“You really need a published patent to get it finished, get it over the finish line in China.” (McCaffrey) And then he made a reference to Resverlogix’s patent - and the Chinese deal that quickly followed. 


Although there remain the questions as to why the Resverlogix and Zenith AGMs were originally cancelled - and why the TSX gave them the okay at the time if all was fluff – it appears once again that Zenith is the one that can get us that global recognition first! Especially when one considers the positive comment made with regards to the trial enrollment. 

Just wish that management and the IR machine wouldn’t have played so coy with the shareholders in both companies over the last few months, even rescheduling the AGMs to right before Christmas. What would most rational investors think? 

Here’s to a more level playing field in 2017!