Aimzine is a FREE online magazine for investors and everyone involved with AIM companies. If you are not already registered to read Aimzine please click here

Each month we trawl through hundreds of RNS statements from AIM companies. In this column we highlight an exceptional item from an AIM company, particularly where we feel the market may not have accounted for recent news.

This month our selected Snippet company is Synairgen (SNG). We originally covered this drug discovery company in Aimzine in September 2009 – see Aimzine’s original article here. The announcement that caught our eye on this occasion was issued on 17 May. The RNS, entitled ‘Positive Influenza Data’, indicates that the company’s SNG001 product may have a greater potential market than originally thought.

SNG001 is an inhaled interferon beta (IFN-β) product which is currently in Phase II trials for the treatment of exacerbations caused by respiratory viruses including influenza. Later this year Phase II trials will commence for SNG001 for the treatment of exacerbations of COPD** caused by respiratory viruses including influenza However, the latest announcement indicates that the product could be helpful to all sufferers of severe influenza.

**Chronic Obstructive Pulmonary Disease (COPD) is an 'umbrella' term for people with chronic bronchitis, emphysema, or both. With COPD the airflow to the lungs is restricted (obstructed). COPD is commonly caused by smoking. Symptoms include cough and breathlessness

In the recent RNS Professor Stephen Holgate, Co-Founder of Synairgen, commented, "This is a very exciting development. There are currently very few therapeutic options for treating patients with severe influenza other than those that target the virus itself. If this therapy is as broad-reaching as we think it may be, it may transform the treatment of influenza viruses especially those that become drug resistant whilst appropriate vaccines are being developed." (Aimzine’s emphasis).

This all sounds very exciting! I contacted Richard Marsden, CEO of Synairgen, to ask about the importance of the recent data. Richard explained that the recent discovery adds an important third element to their ongoing trials (we mention the first two in our original article as ‘two rolls of the dice’). He explained that in severe cases of influenza the virus persists in the lungs but IFN-β can ‘switch on’ natural responses to help the patient fight the virus. The advantage that IFN-β has over such existing treatments, such as Tamiflu and Relenza, is that it triggers a natural response and can operate on a much wider range of viruses.

In their Asthma and COPD trials Synairgen are looking at the use of IFN-β before symptoms develop. However, they believe that the potential for IFN-β with influenza is for it to be used at the point the influenza becomes severe. For example, this could be at the time of admittance to hospital. This is a very large market and, particularly at the time of a flu epidemic, could benefit a considerable number of patients.

Richard says that the market for treatments for severe influenza is worth many £billions. I asked if IFN-β could be used, say in a bird flu pandemic, in the same way as Tamiflu  - this is where an individual takes the treatment as soon as influenza symptoms appear. He said that this was entirely possible. If it were to be used in this way it would then enter a market worth even more billions of pounds.

Away from this latest development, Richard reported that Synairgen’s programme is progressing well and they are continuing to see strong anti-viral responses using their IFN-β product in their testing systems.

It may transform

the treatment of

influenza viruses

even more billions

of pounds

Aimzine Comment

Synairgen is an exciting small company with a market capitalisation of £14 million. At 31 December 2009 the Company had cash on its balance sheet of approximately £6 million which should be sufficient to complete its planned phase II trials.

The Company are optimistic about the potential for their products and of developing further uses for IFN-β. The latest announcement is an exciting addition to this potential which could be worth a considerable sum.

At this stage of development there are considerable risks to the success of the Phase 2 trials and it is quite possible that Synairgen’s products will not prove to be commercial. Having said that, they have already shown their product to be safe and have some strong early indications of likely success.

It will be many years before any of Synairgen’s products would be available to the public. However, the Company’s business model is to out-license its technology to big-pharma on successful completion of Phase 2 trials. For the early trials this could come as early as 2011 with potential for large milestone and royalty payments.

As always, the purpose of this Snippet column is to highlight an interesting situation worthy of further research. We particularly recommend investors also read the recent RNS statement in full and the September 2009 Aimzine article on Synairgen.

y without prior consent. ADVFN will BAN those who post AIMZINE articles without prior permission. 

strong early indications

of success

Written by Michael Crockett

Copyright Aimzine Ltd

RETURN TO AIMZINE FRONT PAGE | June 2010

’