SAR Sareum Drug Discovery Co.

A lot of 'jam tomorrow' stuff in the ERX results today. Dropping huge hints that deals are on the cards with majors in the coming weeks/months. Also hinting though that funding has to be secured from somewhere. Sareum too gets mention:

Drug research & development

With the consolidation of its two technology platforms (EnPAD(TM) and P450
tumour targeting), and its overall expertise in cancer biology, the company is
in a strong position to ensure the next stage of its development, generating a
pipeline of small molecule leads and progressing them into clinical evaluation.
Access to cutting edge chemistry resources, including the rationally focused
chemical libraries of our collaborator BioFocus plc (AIM: BIO) and the
structure-based design skills of our partner Sareum Holdings plc ("Sareum")
(AIM: SAR), has enabled substantial progress to be made since my last statement,
with the pinpointing of potential new lead compounds. Compounds drawn from the
BioFocus library are now moving rapidly through efficacy evaluation towards
formal pre-clinical development, and associated patent filings are increasing
the value of our IP estate. To further augment its position, EiRx intends to
access both additional chemical libraries and medicinal chemistry capabilities
in the near future.

Big pharma approaches

The out-licensing of the Company's lead drug candidates in a timely fashion with
appropriate financial returns is seen by the Board as a key part of the creation
of shareholder value. To this end contact has been established with a number of
major pharmaceutical companies, via key decision makers in their oncology or
discovery alliance departments. I am pleased to report that the Company IS IN AN ADVANCED STAGE OF DISCUSSION
and negotiation with a number of majors with the
objective of securing option or licence agreements over the next few months.
The nature and international standing of those companies reflects growing
recognition that EiRx has a strong discovery and development platform coupled to
a high degree of scientific excellence and creativity, factors that are crucial
in the rapidly moving and highly charged field of drug discovery and
development.

M & A activity

A key aspect of the Company's longer term strategy is the building of an
integrated pharmaceutical company through the addition of skills such as
medicinal and synthetic chemistry. With our small-molecule lead programmes
underway and rapidly progressing towards the clinic, the need for these skills
is clear. Such skills may be acquired through M&A transactions, collaborations
(see above), or organic growth. The Board strongly feels that M&A activity
offers the most opportune route in the current climate and to this end is
actively exploring a number of such opportunities that offer access to KEY COMPLIMENTARY ASSETS OF OTHER COMPANIES.