Scancell Holdings (SCLP.PLUS) - differentiated technology and a focused plan offer ingredients for success
SCLP.PLUS
Full Report by Objective Capital , Sep 08, 2009 download full report
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Key Points:

• Attractive model targeting both drug and platform
  The Holy Grail in medicine is always to develop the master key. In other words, the goal is to find the underlying cause of disease and target your therapy there. Using a proprietary DNA vaccine approach, Scancell is working towards creating such a platform technology that, if successful, will garner a premium valuation in the marketplace.

• This is not “me too” technology
  In both viral infection and tumour models, only high avidity immune responses mediate viral clearance and tumour eradication. Previous failed attempts in the field have simply focused on generating T cell responses rather than how effective those responses are. Scancell is unique in that its preclinical data has shown the ability to generate T cell responses that work - high frequency, high avidity immune responses that actually delay tumour growth and enhance survival.

• ‘Proof of Concept’ Trial is the key that could unlock the kingdom
  The bet with this Company is relatively straight-forward – the trial hits its targeted endpoints and the Company licenses the technology to a partner or even sells the entire franchise to the highest bidder or it’s back to the drawing board.

• Valuation is conservative, with blue sky potential
  Our investment thesis is conservative, with our licensing deal estimates predicated upon Scancell as a single product Company. The goal, with early animal trials on SCIB2, is to demonstrate breadth of application. While relatively inexpensive, successful data in these trials would be worth its weight in gold.

• A high risk, high reward proposition
  As history has shown, the path to market for therapeutic cancer vaccines is not going to be an easy one. Many bodies litter the road and the science is still very much evolving, but to the winners go the spoils. Using a conservative set of assumptions and a heavily discounted valuation methodology, we still derived a base case value for Scancell of ￡0.59 per share.