Strategy

Phylogica’s business strategy is focused on providing peptide drug discovery partnerships, based on it’s proprietary Phylomer^® libraries and screening technologies, to pharmaceutical and biotechnology companies.

Phylogica’s drug discovery services are accessed through partnership deals that comprise upfront technology fees, significant ongoing milestone payments and later royalties on marketed drugs.

Partnerships are structured such that the partner company is responsible for the complex later stages of drug development and therefore the financial burden and the risks associated with drug failure. With a few partnerships in place, Phylogica is cash flow positive. Furthermore as ongoing milestone payments can begin a few months after commencing the collaboration, thus a strong asset base can be quickly established.

Adopting this business model is enabling Phylogica to become a profitable, lower risk, revenue and value creator.

New drug class and market

Phylomer^® libraries contain billions of unique peptide drug leads that represent a new drug class known as Phylomer^® peptides. These peptides form part of the rapidly growing biologic market. This US$120 billion market is expected to constitute half of all drugs by 2015.