bSummary/bbrbr
Scancell is developing a product platform that uniquely stimulates the immune

system to treat disease. The corporate strategy is simple – spend the next two

years conducting “proof of concept” studies in melanoma patients, run animal

trials in parallel targeting angiogenesis to confirm it as a platform technology,

and then sell off the technology to the highest bidder. To use a baseball analogy,

Scancell is heading to the plate and swinging for the fences. With a differentiated

technology and a focused plan, we think this Company has what it takes to circle

the bases.

pBKey points:/BBRBRul
pli type=squarebA high risk, high reward proposition/bbr

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 #65505;0.59 per share.

pli type=squarebValuation is conservative, with blue sky potential/bbr

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.

pli type=squareb‘Proof of Concept’ Trial is the key that could unlock the kingdom/bbr

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.

pli type=squarebThis is not “me too” technology/bbr

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.

pli type=squarebAttractive model targeting both drug and platform/bbr

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.

/li/ul
BRBR
The full report can be accessed at:
A href=http://reports.objectivecapital.com/ocreports/OC-UKHNW-full-objective-scancell-sept09.pdfhttp://reports.objectivecapital.com/ocreports/OC-UKHNW-full-objective-scancell-sept09.pdf/aBRBR
For all our previous comments on this company visit:
A href=http://www.objectivecapital.co.uk/SCLP.PLUS.asphttp://www.objectivecapital.co.uk/SCLP.PLUS.asp/a

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