Phylogica hit with two market setbacks

Phylogica (ASX:PYC) has announced two development setbacks, with Janssen Pharmaceuticals electing not to proceed with the companies’ research collaboration and a licensee declaring bankruptcy.

Janssen has advised the company that it has decided not to take its option to license peptides identified using Phylogica’s Endosomal Escape Trap (EET) platform during the companies’ two-year peptide screening research collaboration.

But in a market update, Phylogica said the collaboration has not been a waste, as Janssen had invested $2.32 million in creating and validating the EET platform.

The company is also in talks with two other pharmaceutical companies interested in accessing the platform.

“The absence of a financial commitment by a research partner at this time is disappointing,” Phylogica’s largest shareholder, Dr Bernard Hockings, commented.

“I remain, however, very impressed with both the efforts and achievements of the entire team at Phylogica over the course of recent months and remain optimistic that these achievements will ultimately yield the recognition that they deserve.”

Separately, Phylogica disclosed it has received notice that Le Metier Tribeca has filed for bankruptcy. Le Metier Tribeca took out a non-exclusive licence in 2012 to formulate and market Phylogica’s Glycinemide as a cosmetic product for sunburn.

Phylogica revealed it has engaged biotechnology business development company Bio-Link to help the company pursue alternative market opportunities for the product.

Phylogica (ASX:PYC) shares fell 52% on Friday after the market update was issued. The shares were trading 16.67% higher at $0.014 as of around 1.30 pm on Monday.