Scancell Holdings - FARADAY TIPS SCANCELL - SCIB1 SKIN CANCER VACCINE -...

SCIB1 SKIN CANCER VACCINE - "GLOBAL DEMAND COULD BE ABSOLUTELY HUGE."

According to the World Health Organisation, 132,000 melanoma skin cancers occur globally each year and the incidence is increasing, especially in the United States, Europe and Australia. The vaccine has patent protection in the UK, Europe and Australia and has recently been granted patent protection in the US. Protecting the technology is vital because if the vaccine is a success, the global demand could be absolutely huge.

SCIB2 LUNG CANCER VACCINE

A developed product, ready for clinical trials might be some way off yet but the potential is there to develop it further and target an even bigger market.

HEALTHY CASH BALANCE

One of the problems with small biotech companies is that they can often burn cash and need constant capital raisings, which dilutes existing shareholders. But when Scancell announced its interim results, covering the six month period to 31 October, its cash balance was a very solid £1.9 million. Just one month later, the company said it would be receiving a payment of £2.85 million relating to a number of antibodies it had sold previously.

Under the terms of that deal, if any antibodies were used in clinical trials within a certain time frame, the company was entitled to the payment. The conditions were met and Scancell got the cash. With this extra money, Scancell’s bank balance has been boosted to a very healthy £4.75 million.

SHARES SURGING

In June Scancell said that the Gene Therapy Advisory Committee ('GTAC') and the Medicines and Healthcare Products Regulatory Agency ('MHRA') have given their approval to increase the maximum treatment period from 6 months up to a further 5 years in its Phase I/II clinical trial. This is a very big deal for Scancell because it means the company can gather much more data as it proves its treatments work. Subsequently the shares have enjoyed an incredible run. In fact, we have almost quadrupled or initial investment in the company.

Why have the shares been surging? Put simply, the new technology could, in the words of the company’s CEO “have a profound effect on the way that cancer vaccines are developed”. The technology is now called Moditope, which “stimulates the production of killer CD4 T cells with powerful anti-tumour activity.”

SHARES COULD BE WORTH CONSIDERABLY MORE IN THE FUTURE

Scancell Directors are evaluating the technology and looking into its strategic options. At this point, it’s virtually impossible to attach a value to the technology. Even though Scancell shares have surged, I’d be tempted to hold onto the shares until Moditope’s true value emerges. The shares could be worth considerably more in the future.

This is a summary; here is a link to the complete research note:

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