ERX - A thread for everyone

Key points

EiRx stands to earn milestones and royalties on the successful development of ZYC300. A similar success-based milestone arrangement pertains to the Company's licensing of drug targets to OSI Pharmaceuticals (NASDAQ: OSIP). The Board will update the market if and when such milestones are reached.

EiRx and Almac Diagnostics view the signing of this agreement the first phase of a strategic alliance that is expected to expand as the companies work together to develop enhanced treatments for colorectal cancer.


ERX entered into an agreement with bioMerieux SA, the leading international diagnostics group headquartered in France. Should we enjoy success in our collaborative technical programme we would expect to progress to technology licensing and ultimately to generate milestone payments and revenues from the development of new cancer diagnostics products by bioMerieux.

Efficacy of ERX3722 in breast cancer model
These molecules are currently undergoing further development and optimization for the treatment of breast cancer; a market estimated to be worth $6.2 billion per annum. Other cancer indications will also be sought for these molecules and/or their optimized derivatives.

EiRx's main discovery effort aims to identify novel cancer kinase inhibitors, and several recent third-party licensing deals indicate the impressive valuations being placed on such products at the late preclinical stage. These include Rigel's licensing of the aurora kinase inhibitor R763 to Serono (total potential value of $160M, with $25M upfront), CGI's licensing of the multi-kinase inhibitor CGI1842 to Genentech (total potential value of $500M, with $25M upfront), Plexxikon's licensing of the PLX4032 inhibitor of mutant B-Raf kinase to Roche (total potential value $660M, with $40M upfront) and Piramed's licensing of its PI3-kinase inhibitor programme to Genentech (total potential value of $230M).

I believe this recent licensing activity in EiRx's chosen field bodes well for
EiRx's future prospects, but also indicates the stage of development at which
the Company can expect to secure a significant license deal.