Immupharma (LSE:IMM) — Corporate Update

0:01 Good afternoon, ladies and gentlemen, and welcome to the IMMUPHARMA PLC Corporate Update. Throughout today's recorded meeting, attendees will be in listen only mode. Questions are encouraged. They can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Please simply type in your questions at any time and press send. Due to the significant attendance on today's call, the company may not be in a position to answer every question received during the meeting itself. However, the company can review these questions and we'll publish any responses via the platform in due course. Before we begin, we'd like to submit the following poll, and I'm sure the company would be most grateful for your participation. And I'd like to hand over to the magic team from IMMUPHARMA, Tim. Good afternoon. Thank you, Mark. Good morning, everybody. Thank you very much for joining us here today. And the purpose of today is to give a pretty detailed rundown of the details of the funding and the reasons for the funding that we announced earlier this week. And as you'll see on the

1:03 screen, I've got my two colleagues with me. So let me introduce myself, chief executive officer, Tim McCarthy. On my left, your right, is doctor Sebastian Guduru, who our Chief Scientific Officer. And on my right, your left, Doctor. Tim Franklin, who is our Chief Operating Officer. And we'll all be taking different parts of the presentation to explain the details of each section. So if I can just go back to this slide here. Before we get into the detailed presentation itself, we've already had quite a number of pre submitted q and a's and various feedbacks during the week from the shareholder base. So I just wanted to address two or three pretty important key points before we get into the detail.

1:50 So firstly, I want to make absolutely clear to everybody listening today that p one forty remains our absolute focus. Whatever we're doing with capiglucagon, which we'll explain in detail through the presentation, doesn't take away anything at all from our focus on p one forty. That is our main drop value driver. It remains on track for licensing deal in in this year. And again, we'll come back to talk about that in a little bit more detail. But I think it's really, really important that people do not get diverted from that message and believe that reasons, any reasonable reasons that we have done this deal this week has anything to do without losing faith in p one forty or that it's not progressing on track, that's not the truth. So I just wanted to put that right up front, but we will come back to P one forty and give you a little bit more detail on that. The second point is why have we raised money?

2:48 Tim McCarthy, CEO, has said quite consistently that we are not raising money. We're concentrating on taking forward p one forty. That's the questions I get back and the feedback I get back. And I understand that. And it was never our intention to raise money. There is no need to raise money from a financial perspective at all, and that's some of the other observations that have been addressed this week. The only reason for even considering taking this money on board was because we were approached by a number of our long standing shareholders who had money to deploy. They recognized the fact that the company was undervalued, and they were keen to help us, in in my description, build the company. And this is about building the company.

3:34 It is not about running away from p one forty, which is some of the questions or comments which have been made. Quite the opposite. And so the third point I just want to make is is why we've chosen Capi Glucagon. We will go into that in a lot more detail. But it was done on a very, very strict criteria of how we do all our project evaluations. And when we decide to invest Shell's money into any value developments, we have to go through a proper professional evaluation, which has a lot of criteria to decide whether or not it's a valid project. And capigleucon ticked all those boxes. And I'll let Seb speak to this later on in the presentation.

4:20 But I I think you'll understand when Seb talks about capigleucon, his excitement for it, and the uniqueness of that product. You will understand why when we got offered the funding to dedicate to that development, it was a decision that was easy to make at the end of the day. But it is about building the company. One company is not built on one program. In other words, p one forty. And since we took the management of the company five years ago, this is what we've been building towards, to build a sustainable company with a wide portfolio and build shareholder value. So I just wanted to make those points up front. We'll be going into each one in little bit more detail as we go through. So let's just run forward to the detailed slides.

5:13 So this comes back right up front to p one forty. It is absolutely our total focus. It's our core value driver as the title says. And you will remember, all of you that know the company very well, that we had some big advances in that program last year. In September, we announced a new patent filing, which is based on the work that Seb and his team had put in over the previous few years. So taking p140, or what some of you remember used to be called Lupusor, but now we call p one forty, taking it from a program which had one disease indication that was targeted on, I. E. Lupus, into an area where we now have the opportunity to treat up to 50 autoimmune diseases I. E. The ability to treat all autoimmune diseases across across the piece not just one.

6:03 And that was a result of the scientific progress that Seb and his team achieved. So we've been able to recognise and understand what the mechanism of action is or MOA as we call it, the dose arrangements we need for treatment of diseases and also made great advances on how do we identify those patients, that will respond to P140, what we call M types. And not forgetting, the fact that we've also, in all of that, we're now able to diagnose patients. So putting the diagnosis and treatment together is very, very powerful as we go forward. And that's what was result of the work we've done in house and what we announced last year through the patent. And that patent, which was filed last September, is progressing through.

6:51 It's in the inquiry phase now, through all the different jurisdictions that we filed it in. And Seb, I think, might say a little bit more about that and his confidence of that going forward. And going back to the core point of where is P140, what's its next step? Yes, let me address the point that last year, when we put the patent announcement out, I said quite clearly that we were looking to close a deal with a partner by the end of twenty five. We didn't meet that objective. And I recognize that. And I think I said so when we updated the mark in November. However, we are making great strides on that this year, and I'll let Tim speak to that when he when we come on to the activity around the licensing.

7:36 But knowing what we know and all the discussions going on, that's why we've got very, very high level of confidence of concluding that deal this year. Just an introductory slide on capiglucagon. So I think I mentioned in my introduction that this wasn't something that we were looking to take forward now. We wanted to move it forward, but we just didn't have the financial resources. And as all small companies in our sector know, we are cash starved. We have to rationalize or rationalize, I should say, where the cash resources go to. And and very much in the last number of years, that's all been dedicated into to p one forty. So the fact that we had the opportunity completely from left field, not that we were looking for it or went out, to to ask anybody to to fund this program. The fact that we had the opportunity to devote some cash directly into Capi Glucagon was both unexpected, but also a delight.

8:40 And as we'll go on to demonstrate, there were certain criteria that we looked for to say, is this a program suitable for us to take extra funding on board? And yes, it was.

8:54 Seb, I think, will will run through that when we get to the more detailed slides. But I want to make, again, the emphasis that deciding to go forward with capital through the account does not take away the value from p $1.40 at all. And we are building a strong company here with a broader portfolio. And there's a slide later on in the presentation which talks about the individual value of Capiglucagon on its own. And I think that will help everyone to understand why we've decided to take this extra funding on board, because the value of capiglucum on its own stands up. And I know a number of of shareholders and commentators have asked, well, why are you diluting at this point?

9:42 I would answer that in this way. There's a there's a there's a way of looking at dilution in two ways. You can look at dilution as being a percentage. I people are concerned that when we take more money on, we issue more shares, we dilute their interest in the sense they don't have the same percentage of the company they used to have. That's one way of looking at dilution. The other way of looking at taking more money on is does the net impact of taking that extra cash on and issuing more shares lead to a greater overall value

10:14 of the company, and so increased shareholder value down to each and every one of you? Whatever the number of shares you own, it's very much about what they are worth, not the percentage of the company. And we are absolutely convinced that bringing Capy Glucon on now, with the opportunity to fund it all the way through this accelerated program for the next two years, will add that value more in excess of if we hadn't taken money on now. So just before I hand over the next slide, I just want to bring Seb in on those first two slides. So Seb, would you just like to give your view on where we are with PLC and where we are in the stage of development. Yes. Sure.

10:59 I mean, with p 140, we are basically on track. Nothing changed really except from the fact that's more positive. I mean, p one forty p one forty is is unique, like we say. Like like we mentioned, like the the result are, I would say, incredible. It's very exciting when you when you look at the data that we have already discussed about, but the data we have on the on human cells that we can see the effect on on p one p one forty, what it's doing. So, I mean, this is this is very exciting on scientific perspective.

11:47 And all the discussion I had with with scientists, they were all excited about about this. So, I mean, there's no there's absolutely no issue there. Everything is on track. The patent is on track. I mean, when we when we can, we we'll make new announcement on this. But, yeah, I think it's very exciting. No. It's not it's not about p one forty. The thing is, actually, in r and d, we are doing more than one project. So there's many projects actually going on. And, of course, we don't talk about everything. But one of the project that actually I was myself promoting and strongly since 2024 was.

12:40 So that's how can I say? It's like it's my little baby project in the sense that I designed the molecule in 2017, and then we developed it with with the team at the time. So and we did a lot of work on it, and we know we know it works. We saw we saw we saw at the time you know, when it was developed, there was there was a push toward the rescue product, and then you had some on the market that arrived. So the prod the project was put a little bit on on hold, but then we saw a clear post the clear possibility for the Biharmonal pump system, and this is really where we can shine.

13:30 For me, there's no doubt we have the best product, and I'm really happy that we can finally move forward with it. Thanks, Raimo. Okay. I'm going to hand over to Tim to take us through the capigalucagon from his perspective. Excellent. So, the Capigalucagon product profile is ideal for type one diabetes market, and I'll explain to you why. But first of all, let's just go through the disease itself, what causes it. So you are probably all aware of someone that suffers from Type one diabetes. So it is a result of the pancreas not producing insulin, not producing enough insulin to manage the blood glucose levels in the body to normal levels.

14:24 Interestingly, Type one diabetes is an autoimmune disease, so it is parallel to what we are doing with P140. And this disease attacks the insulin producing cells of the pancreas, the beta cells. It typically occurs from the age of four to up to 14 or 15 years of age, that's when it generally peaks. But it can still appear at any age. Currently, there is no cure for Type one diabetes. So, as many of you are aware, the treatment aims are to keep blood glucose levels as normal as possible using insulin either in the form of injections, the use of pens or pumps, which I'll come on to in a moment. Yet, despite the widespread use of insulin in the market over many years, and there have been lots of different types of insulin, short acting, long acting that have been used, people with Type one diabetes still have a shorter life expectancy, up to twenty years in some cases of shorter life expectancy.

15:29 And what generally happens, over a long period of time, because glucose levels are not managed as tightly as they could be, that a lot of patients will develop serious complications over their lifetime, affecting the eye, foot ulcers, heart disease, high blood pressure, kidney disease. The moment someone starts to develop Type one diabetes, the kidney disease clock is ticking and it takes many many years for the effects of high glucose to affect the fine, if you like, filtration mechanism of the kidneys. So not only that, but of course those serious complications over a lifetime lead to massive economic burdens for society. So, for example, in The US, there is about 800,000,000,000 in cumulative societal costs. So a huge impact.

16:31 Not only that, but we are faced with that problem increasing over the years. As you can see here, you've got increasing prevalence of Type one diabetes forecast in all the markets around the world and growing faster in some of the developing markets as well now.

16:51 So, let's come back to pumps for a moment and consider their place in insulin therapy. Pump use in The US and The US is pretty much more advanced in terms of the market activities there. So pump use, and this is insulin pump use, is used in around fifty-sixty percent of cases. And this is an example of Beta Bionics iLET system of where we are today. These are really cool, sort of funky technologies now with very small miniaturized systems with glucose sensors on the body. And then there's a cartridge, as you can see there. It's in this case an insulin cartridge.

17:39 And that delivers insulin through the skin. The beauty of this, and one of the important things about insulin therapy, is you don't need to count your carbs or carbohydrates, because that produces glucose. And a lot of the sort of advantages of these systems is that they can constantly monitor your glucose levels without the need for pinpricks or that sort of invasive procedure. There is a little point at the bottom there saying that bihormonal pump is in development with Beta Bionics. Just remember that and I'll come back to that in a moment. So if one looks at the insulin pump market, and this is taking just the insulin pump market forecast from a market research group, the forecast is for that to become worth around 600,000,000 by 2035.

18:41 That includes the devices, all the consumables and obviously the cartridges with the insulin in form part of that. Our own internal forecast for Capi Glucagon over the next ten years, well, ten years post approval is $3,000,000,000. And I can pretty much say that that's quite a quite a rigorous conservative approach built up through prevalence figures, what we know in the market today in terms of pricing and uptake. So to control blood glucose normally in the body, it's not just insulin that is involved. There is actually another hormone called glucagon.

19:28 So ideally, the combination of both of these hormones gives better control of blood glucose. And blood glucose is measured by something called HbO A1c, which is the glucose attached to the blood in the system. So you can see on the right hand side there, if the glucose levels go too high, you need insulin to bring the glucose levels down. And if it goes too low, you need glucagon, ideally, to bring that back to normal. So it's a balancing act of trying to keep the glucose levels within a tight range, without them going too high or too low, over time. If they go too low, you get hypoglycemic low glucose, which is due to dysfunction of glucagon secretion from pancreatic alpha cells.

20:22 So this is the aim, to ideally look at both insulin and glucagon. So why is that not being the case?

20:35 There are three main messages from this slide. One, with respect to glucagon itself. The second, in terms of where do we go from insulin pumps. And the third, well, it's actually happening at the moment. So the first one addresses the fundamental problem in the market today, and that is the need for a novel, stable glucagon liquid formulation. There just isn't one. There are formulations that try to meet this requirement, but they are falling well short. The second statement is in regards to an article in The Lancet, which clearly showed that you get much better control of glucose levels by using insulin and glucagon in a bihormonal fully closed loop system. Now, not the ideal glucagon, but nevertheless, they managed to get some good results there.

21:36 Thirdly, there you'll see that Beta Bionics, this is the device I showed you earlier in the slide deck, is not only in the monoinsulin area, but it is now developing an automated delivery of insulin and glucagon using another glucagon formulation which several come on to is not ideal. So the drive is there to move to bihormonals, pumps. And clearly, is a market where there will be significant growth, where you should see switching from mono insulin devices to dual hormone devices or bi hormonal devices over time.

22:26 However, we need a stable form of glucagon to do that. And I'll hand over to to Seb. Yes. Indeed. Because glucagon is inherently unstable in liquid solution. It aggregates from fibrils, degrade rapidly, and can gel. This makes formulation particularly challenging for pump use, where clogging can compromise reliable dose delivery. Without stable liquid formulation, continuous glucagon delivery is not feasible. No currently available formulation fully meets the requirements for chronic pump use. Existing approaches rely either on non ideal excipients or on glucagon analogues with potential safety concerns.

23:12 Capiglucagon addresses this barrier while preserving the benefit of negative glucagon without risky metabolites. So so what the what does it mean is that what's what have been preventing the development of bioharmonal pump was the fact that it's really difficult to make a cartridge with glucagon in solution in physiological solvent like saline. So different approaches have been developed to go to to solve this problem. So, for example, to change the the formulation, so to use nonphysiological solvent, which would be the approach of Xiris,

23:59 which with the problem, you know, ideally, you want to have, like, water based solvent. So and the other approach that have been used is to modify the peptide, so modify the sequence, which would be the approach of Zealand Pharma with desiglitagon. So in that case, you can improve the solubility, make it soluble in saline solution. But then you modify the sequence, you don't have the same pharmacodynamic, and in their case, introduce, for example, non natural amino acid, so you don't have natural metabolites. So in our case, with capilucagon, the approach we we use basically to to solve all those problems is to use a prodrug. So you have the best of both world, meaning that you can increase well, actually, making it soluble in saline solution while having the active being glucagon.

24:57 So like I mentioned earlier, this was discovered in my lab in 2017, and we filed a patent in 2018. Okay. Piclucagon is a prodrug prodrug of glucagon converted in the body into glucagon and natural amino acid. This approach is designed to combine the benefit of native glucagon with a favorable safety and tolerability yeah, almost profile. We we intend to pursue approval via the US FDA five zero five b two pathway. This pathway enables partial reliance on existing FDA data for approval for an approved drug, in this case, glucagon, together with product specific supporting data, in our case, capilucagon.

25:43 So compared to a full NDA, this pathway is expected to provide a more efficient development and regulatory route. And, of course, this patent protection may be further extended through PTSPC. So

26:01 yeah. So the the the bottom line the bottom line is basically we think we have the best glucagon for the the biohormonal pump. And the fact that it's a prodrug allow us to make a very quick development at lower cost. So just carrying on from that, picking up the point that is very important here. One of the key reasons why we chose Capricle Glucon to get funded through this methodology was the ability to move it through this regulatory pathway, Seb just described, which for us, lasts approximately two years from when we start, sometime in the near future.

26:46 And this slide is on there to illustrate two things. One, to illustrate the the the pathway through and all the different steps that we're taking, and to demonstrate that we have high level of confidence that we can meet those timetables and get this product into commercialization from from our perspective extremely quickly. In fact, ironically,

27:11 although we're only just picking up this program at this point now, this will get to market way before p 140. Now, obviously, there's lots of value added points for P140 over the next period, not least the partner deal we're going to do this year. And then as we move it through with our partner, it will go through further clinical studies, and that will continue to add value, etcetera, etcetera.

27:35 But even taking the quickest route of p one forty to get a product onto the market, this capiglucagon program is going to beat it by years. So again, back to the value adding of capiglucagon, That's a really important point to take on. The the other reason for putting this slide out like this is we're a small biotech company, a listed company. We live or die on our news flow, and don't we know that? And this is our our presentation to you of where we believe that positive news flow is gonna come over the period of the the the development over the next eighteen months, two years, very, very regularly. So we've we've blocked it out here in in half years.

28:22 But you can see there's an awful lot of news which is coming, you know, the the very near future, which will, one, confirm that the program is on track, but also just feeding the the

28:36 messaging that we are on track and we're adding value. And that value is going to lead to this product being commercialized as, say, sometime within the time frame of the two years. And if you look halfway down, we've got highlighted potential for partnership deal at any time from this point. And that is, if you look at the graph at the bottom, we've got the first two sections. So the pre IND meeting is what we're going be moving into very quickly to discuss with FDA the details of the study, although we've already got outside opinions from consultants on this, so we're pretty confident of what we've got. The next is the actual work, so the CMC, the preclinical, etc. And then you move to a point where you just get confirmation from FDA on an IND that you can take it into a human study, which we're calling the SARD study.

29:31 But once you've got to the point of achieving an I d a I n sorry, IND, that is extremely valuable, both in terms of ticking the box that we've got this this product ready to go into into studies, but also very valuable from a partnership point of view. And we've already been reaching out last year when Tim was doing a lot of background work in capipelucagon just from a market perspective and reaching out to some of those companies that are well, all the major companies that are in this

30:02 this pump market. There is tremendous level of interest from those parties, and said, look, if you can crack this, then you've got an absolutely stupendous product, and all of them would be interested in talking to us about this. So we've got a ready list of people, which are the top companies in this pump market, that we're ready to go to. And certainly we will keep them informed running through the program.

30:28 We will definitely be picking up the discussions at that point we get the IND. So it may be that we do a partnering deal at that point, and then the cost and the development is done by a partner, or we decide that it's worth the investment ourselves to add even more value to get the data from that that that SAGE study. And that's the decision we can take at the time. But this is, I think, a really good slide to illustrate one of the main reasons why we've taken this extra money on now to develop capiclucagon. So just to emphasize a point without going over the top on this. The investment proposition for Capy Glucagon was very much, as I think I said right at the front of this presentation, that when we were offered the opportunity to take money on to develop a product in our portfolio, We went in internally, and we all got together and said, right, well, what do we have? And we've got, you know, number of products at early stage of development.

31:29 But from our perspective, there was no rationale for taking money at this point when we'd said very clearly we weren't going to take any on, and putting it into some of our very early sort of preclinical programs, maybe anti infectives, for example, which, you know, we've talked about before. There was there was no way we were gonna add value quickly enough and in the right amount in order to justify taking this money on. And and so it we were very, very aware of we're taking the decision here, which will take people by surprise, not least the fact that you nobody was expecting us to raise any more money. And we said we weren't, and we weren't intending to. But when you look at the facts of capy glucagon, the way that Seb has just explained it, from a technical point of view, the way that Tim has just explained it from a market perspective, the fact that we've got a very,

32:24 very accelerated program between eighteen months and two years, which follows a well trodden path for these these types of developments, not in in insulin per se, but in in these type of products. It's there. We can add value extremely quickly. And I go back to the value proposition of, yes, we are diluting existing shareholders, assuming they don't follow their their money in this particular deal.

32:50 But we're diluting to add extra incremental value, and it's about where the value of the company arrives at and the shareholding you have and what that shareholding is worth, not the percentage of the company. I'm very aware, and I wanna make that clear, of people's concerns about dilution. But all of our decision making was based on we were only going to take this extra money if it means we can get straight on the capyglucone without waiting any further, and it's going to add value in the short term. And it will do. We're absolutely convinced about that. And the bottom of the slide is repeating a little bit, just giving a little bit more detail where Tim was speaking earlier about our internal projection of capitglucom sales around GBP 3,000,000,000 per year. And that's based on the usual analysis that we do when we evaluate any project, and which we did for this one, obviously.

33:47 And it's a matter of taking assumptions on the growth of the market, the market penetration, which we believe Capiglucum can have, the pricing. And you'll see that we're not being over optimistic in terms of the percentages. So, you know, for example, we're looking at a market share of 34% in The US and 17% in Europe. You know, if you understand what Seb was saying about the absolute superiority that capiglucagon has about anything else on the market, and there's nothing else coming up to challenge capiglucagon, it's absolutely, you know, on its own. To project 3417% as our market share is pretty conservative. But that's one of the basic assumptions where we come to that that sales revenue.

34:35 Now you you convert that into value for the company and what we normally sort of run out NPV models and and what the underlying value of the company will grow, that's why we made the decision to take that money and invest in capital to come.

34:53 Let me just touch on the fundraising. So we we have announced this week that there is a 6,000,000 investment from Lancet Capital. A lot of you will be very familiar with Lancet because we've we've had Landstead on our shareholder register for the last ten years now. This will be the eighth deal we've done with Landstead.

35:13 And and let me just take a moment to talk about that. Landstead have been a a fantastic supporter of the company. And as we managed or sorry, had to raise, like all small biotech companies, capital at various points, you know, over the period, we go out to the market and to existing shareholders and potential new investors coming and support our programs.

35:35 We're in a difficult market for small biotechs. We have been for a long time. A lot of the traditional funders of of our type of company, if I go back fifteen, twenty years, they've all disappeared for various reasons. And it's it's very, very difficult to to keep funding a company like IMMUPHARMA as we go through. And I know it's not everyone's cup of tea, and there's there's lots of of criticisms of the way that put their money in in terms of the sharing agreement.

36:03 But, they have been there for us every single time we've gone to raise money. And their money, alongside other investors' money, has been the reason why we've been able to progress p one forty to where it is and have such an extremely valuable asset in p one forty. And again, they're they're they're coming behind the investment into Capy Glucagon for the same reasons because they're practical investors, pragmatic investors. They don't just put money in if they don't see the value proposition. And I know that a lot of people a lot of people talk to me about Lancet and say, well, we don't like the way that Lancet operate in terms of sharing agreement, and you don't get as much money as you have committed or perhaps you do sometimes.

36:48 This is all based on news flow. And when I said earlier about news flow drives a company like ours and the share price and valuation, Yes. We've had ups and downs on some of the sharing agreements with Lancet over the years. We've had some very good deals where we've received a lot more in the commitment than was originally pledged without any further dilution of shareholder interest, and we've had less. And again, that doesn't affect the the dilution in in any in any way, shape or form. But but there is a direct correlation between the news flow that we put out and the return we get on that deal. So if I pick up the latest, the last one that we did last year, which is a relatively short one for seven months, that coincided with the announcement of the patent, announcement on on PML 40.

37:38 And we all saw the share price rise from similar levels to where it is today, touching 18p or even touching in today intraday 20 p at at one point. And if you equate that sort of performance to what we're currently going into a deal with Landstead, so we're they've pledged 6,000,000. We've got what they call a benchmark price of 8p. So if we average 8p across the twenty months of this agreement, we will get £6,000,000 in total across the period. If you look at that 8p and we put, you know, this year, a deal announcement out on p one forty, We confirm that we're pushing ahead with capricleuca going, and go back to that news flow slide that we talked about. And there may be other things that we can update the market on in terms of what else we're doing, progress on the patent prosecution for P140, for example. There's lots and lots of news flow coming up over the next six to twelve months. That, by its very nature, is going to drive positive sentiment. It's going to drive share price. So if we go from do simple maths, from 8p to 16p on an average across, we will get an extra £6,000,000 for no further dilution.

38:56 And that extra money can go straight back into the portfolio to to keep developing other products, again, for no further dilution for shareholders. And that's adding value for all shareholders, even those who are not participating in this particular round. So I'm acknowledging that the Lambstad sharing agreement arrangement is not everyone's cup of tea. I think the decision to take that Lambstad money this time, we're taking it at exactly the right time for the benefit of all shareholders, and that's why we're keen to take it. Now associated with that is The Wrap, which closes today, in fact, at 02:00 for anything up to a million and £0.5. And we deliberately put that in there because we wanted to give the options for all shareholders to participate.

39:42 The issue price is is 6p. And, again, that funding is dedicated to the the fast tracking of capiglucagon. We didn't need to raise this money. We weren't going to raise this money. It's going be dedicated to capiglucagon, and that's going to drive that value that I keep talking about. And as I've said more than once, we absolutely expect to generate that strong positive news flow over the next twelve to twenty four months during the period of capital income. So just to finish on this slide, we have not changed direction. We have not lost faith in People in Forty. We are doing this transaction to strengthen our portfolio, build real value for shareholders going forward.

40:28 And certainly, the feedback we've been getting on the discussions on the p one forty licensing deals are very positive. Tim gave you an overview of that. In fact, I might ask Tim in a moment just to to give you a little bit more detail on that, because I know we've had lots of questions. Where where are we in that process? What exactly is going on, etcetera? So we'll we'll try and put a a little bit of skin on the bones for that for you in a moment. But summary, I would say, is those are going very well, and that's why we're very, very confident of that new flow coming through on PM40 this year. Accelerating capileucon, we've talked about, and just concentrate on the fact that it's an accelerated two year program.

41:13 And it has absolutely individual appeal to that marketplace, and we've had that confirmed from the leading players to to us. And said, if you can get this developed, we will take it from you. And it it will just change the market profile absolutely. We've talked about Landstead and the near term catalysts. And I've I've also said that the the retail the wrap retail offer is is there for the shareholders, and that closed at at 02:00 this afternoon. And I do believe, if I got my my presentation right, that that is the last slide. That's great, Tim. Thank you very much indeed for updating investors. Ladies and gentlemen, please do continue to submit your questions. I just want to remind you that recording of this presentation, along with a copy of the slides and the published Q and A can be accessed via your Investor Meet company dashboard.

42:10 Tim, as you can see, you've had a number of questions from investors today. So thank you to everybody for your engagement. If I may just hand back to you to take us through the Q and A. Thank you, Mark. So I've got the questions in front of me. So there have been a number of pre submitted questions, I. E, before we started the presentation. And if I flick down to the bottom, yes, there's a few come through whilst we've been on air today. Now certainly a lot of the pre submitted ones, I haven't had a chance to read the ones that have just come through yet, but a lot of the pre submitted ones I think we have covered in the presentation. And and there's a few that are are repeated for for obvious reasons because they're they're coming in from all lots of of sources. So I think the way that that that we can handle this is I'm going to ask both Tim and Seb, if you like, my question, which is amalgam of of all the questions which are coming in, to try and cover all the the inquiries and just put a little bit more detail for for all listeners, for all of you today on what I think are the key points and what you are indicating towards through the q and a are the key points. So I mentioned just before we finished the formal presentation about the partnering discussion. I know that there's a high level of interest in what exactly we're doing, with whom, you know, how the the sort of feedback is going, etcetera.

43:38 So I'm gonna ask Tim, actually, if you wouldn't mind just giving an overview, because you're leading the the the the charge here with obviously being hopefully ably supported by myself and Seb. But could you just give us an overview of where we are? Sure. Well, it's the acid question, isn't it? And a very relevant one, of course, and I can completely understand that. If you cast your minds back to the one of the previous slides, you know, we submitted the new patent September last year. We had a tremendous response to a lot of the scientific output that hit the market last year. And as a result of that, of course, we had a seismic shift in the engagements, if you like, of various number of companies.

44:29 Ones that we're already that we were already talking to, plus new ones as a result of of those insights. Because remember, initially a few years ago, we were just talking around lupus and CIDP, and maybe one or two others, but those two primarily. But last year opened up the floodgates to huge potential clinically for the application of P114, not just in those diseases, but across a huge range of autoimmune diseases, Tim mentioned up to 50, which is certainly the case. And obviously, there is a shift in the thinking around what these companies want to do with that product. There's a lot more opportunity for companies to think about aligning their therapeutic focus and what they're looking at with this new opportunity with P140.

45:22 Things take time. And, you know, we had a huge euphoria towards the end of last year. But a lot is out of the company's hands in terms of how quickly those partners can do their own due diligence. And it's fair to say, I think, that you know, the new data, the new information, the new scientific information that's coming through has greatly increased the dialogue with these companies. It's been extremely interesting and helpful in formulating our own ideas and, how we move forward with those companies. It is complex because you're not talking about one indication, there's many. We do know that this is a hugely interesting area for licensing and M and A, the area of autoimmunity, inflammation, diseases caught under that umbrella.

46:15 And still a huge amount of significant medical need there. So there's been a lot of activity. It's not going to stop. I think we're well positioned to fit with the right partner, you know, at the right point in time. But we just need to, you know, unfortunately, be a little bit patient on on with them, on their side. But we're providing all the support that we can at the moment and and enabling those discussions to move forward to to the right point. Thanks. And if I can bring Seb in at this point, because there's been many questions, all sort of slightly differently phrased, but all going to the same point. Are we having problems in those discussions? Are we getting pushback from the r and d teams and the companies we're talking to on a scientific level?

47:05 Do they not buy into the scientific rationale that we're putting forward? So this is more Seb's area. Tim's talked about the sort of commercial side and due diligence, etcetera, in the discussions. I I just like to bring Seb into if you don't mind, Seb, just to I mean, you're obviously leading the the discussions on the the the scientific side with the scientists in these companies and the the due diligence there going. Without prompting you one way or the other, can you just give us your flavor of your discussions and and the interactions that we get? Yeah. Of course. Now the interaction is are very good, actually, but everybody are really impressed by by the by the results. So it's they're they're really interest they're really interested in the science, so it's we have good discussion.

47:59 And and actually, well, that's something I wanted to say as well is we are planning well, we are working on the publication right now of the of the results. So we we plan to publish everything as soon as possible so then everybody can judge by themselves about the result, but we're we're very confident with with what we have what we have. So yeah. One of the questions, Seb, was was very direct and said, you know, are you getting pushed back on the scientific rationale or the data that we're presenting? Are any of the the companies disbelieving, you know, what we're presenting to them? No.

48:44 No. No. Fully direct. No would be the answer. No. The I mean, we we present we present result facts. You right? So they're they're they're quite interested and impressed about the the results. Okay. Alright. Forgive me if I hesitate for a minute. I'm just trying to pick up some of the the questions which which came in while we're on on air. Okay. That says I'm actually not going to to say who the the names of the people because I don't feel comfortable putting names to to questions when they come in, so forgive me. But there's one here. Are you fielding potential buyout deals, or is the objective for licensing deals on p one forty interesting?

49:34 No. We're not we're not looking at buyout deals. I'll be quite straightforward about that. We're we're talking, as Tim has described earlier, on partnership deals or licensing deals. We did have another question on a similar vein. You know, can we talk about the types of deals we might expect from p one forty? And, Tim, I don't know whether you wanna address that. Sure. Yeah. Well, there's probably two two key avenues for a deal, but, you know, the primary one really is to have a deal where you get an upfront fee. I mean, this is the typical deal, and this is where you see most of the licensing deals being structured. So an upfront fee, some milestone payments depending on certain milestones up until the the filing and approval of the product, so final milestone on approval.

50:24 And then you've got a royalty structure stream, which, you know, could be what whatever those percentages are according to the time and which is done. But and then those are probably those royalty rates would probably gear on on specific sales targets. The other the other sort of routes could possibly be some sort of optionality type agreement where they they pay for so much, get to a certain point in time, and then have the option to to to come in and develop it in a certain way for a certain fee as well, and with milestones and royalties. Okay. Thank you. There's one here which is an interesting question. Are the new shares being ring fenced so the £6,000,000 funding for the new super drug cannot be sold if p $1.40 actually does get sold?

51:17 I've been a long term shareholder for over seven years. Alright. Let me just let me just try that one again. Are the new shares being ring fenced? So I it's specifically the question's particularly mentioned is 6,000,000 funded, but we shouldn't forget that there are gonna be additional shares issued under the wrap by the retail offer. But I guess it's the same principle that can are they ring fenced such that they cannot be sold, I. E, by the shareholder who buys them or the investor who buys them, if p $1.40 actually does get sold? Okay. I I I think what the question is is asking is we are take I I think, if I can interpret that, if we if we're taking money on to develop capiglucagon, can we or is it linked in some way to the to the the p one forty getting it says sold here, I think, probably means license.

52:13 I mean, the the short answer to that is no. I mean, there's no way that we can differentiate one set of shares from another. And it's not only the 6,000,000 we're getting from Landstead, you know, their shares, but we're also getting shares from anybody under the wrap as well. And in in all of the fundings that we've done, we've we've just got one class of share. Everyone has the same rights to to deal with those shares, buy, sell, whatever they want to do. And there is no connection whatsoever between having some restriction on those shares against whatever we do with p one forty. So I can just that's the only way I can answer it because there's there's all sorts of sort of implication from that sort of of question, which it's just fairly straightforward as I'm concerned. We're issuing new shares for new cash.

53:03 That's being applied to Capi Glucagon. And at any point in the future, anyone who holds their shares can buy buy some more or or sell what they've already acquired, and it's not not linked in terms of your shareholding to Capiglucagon or p one forty or anything else in the in the portfolio. Right. There's one here. How is p one forty deal going to work alongside Avion? And and there's a there's a number of questions asking about Avion and where they sit in this this whole area of how we take p one forty forward. We're in constant dialogue with with Albion. Obviously, we've worked with for a number of years now. We've we've got a very, very good partnership with them.

53:55 And, we want to progress p one forty on a worldwide basis. And that's the solution that we're working towards. And and that clearly, obviously, involves bringing Ambion into those discussions and and finding the the best route forward for for shareholders. So I I hope that answers the question. So another one. In November 25, IMMUPHARMA said there were multiple deals possible on p one forty. Now we are only talking about a single deal. How do investors need to interpret this? Okay. I I honestly can't remember talking about multi multiple deals per se. I mean, we might have said something like there's a possibility of one deal or more than one deal.

54:45 The the reason there would be multiple deals is because we might break it out in geographic territories. It's very like we have, for example, with Avion in The US, and we still would say in the rest of the world, it's very difficult to break intellectual property and programmes like this into any other way. So, for example, we've now got applicability with people in 40 across all autoimmune diseases. We could do it, but it would be a lot more difficult to try and license that by indication, for example. Because of the intellectual property situation, and sort of market dynamics and pricing, and which indication gets to market, you know, sooner. Tell me, do do you wanna you might wanna comment on that actually. Well, I think, yeah, when it comes to licensing deals, you have from the very top, you've got global partnering deal with with with one company, and then you've a whole series of of options below that, which could be, you know, one US and one ex US or various regions, Asia, Europe, US.

55:49 So that's the only thing that that comes to mind for me. And and you're right. You know, you can't split up indications. You can't split these indications by by a different deal for for the for the market access reasons that you've Yep. Yeah. Actually, there's a really I I think we need to talk to our brokers about this one. Somebody's indicating that Hagrid's Landsdowne website is down today. And so can we do something about it? Because there might be people wanting to invest through the retail platform. I think we're going have to pick that up after we finish this presentation. But thanks for alerting us to it.

56:43 There's one here. Will we reach 19p again in 2026? I think my my nomad would tell me that I can't do forecasts or sort of projections on where I think the share price is going to be. But I will answer it in this way. We are very, very confident that we will get that positive news flow coming out throughout this year. So there is a direct correlation between positive news flow and share price appreciation we saw last year, which I mentioned earlier when we had the patent announcement. And it's testament to how quickly these prices can move in our area, especially for small biotechs. So I I for obvious reasons, because I get my knuckles wrapped, I can't comment on that particular projection of 19p, but hopefully I've answered it in a in a satisfactory way for you.

57:42 Forgive me being a little bit hesitant. I'm just trying to get through all these questions. So another one on a similar theme, and I'm probably gonna have to answer it in the same way. Tim, you're on interview saying the market was just getting started when we were approximately 12 to 13p. You also talked of the business being undervalued. That suggests you have a fair market value for IMMUPHARMA. What is it? Again, I'm not gonna put a number on it, but, you know, it's pretty clear to to anybody when you look at just p $1.40 on its own, let alone potential value of capyglutin we've explained today, that the the business is undervalued. Look at the the potential revenue streams, the markets we're going into. But this is the world we live in.

58:28 We are a small cap on on AIM, and we've got actually pretty good liquidity for a small company on AIM. And our share price directly relates news flow is directly related to news flow. And even that news flow, as it comes through, will never truly reflect the underlying value of our intellectual property. And that will take a few years to come in. And when I'm talking about a few years without putting a number or projection on it, You know, we're talking about many, many multiples of where we are now, because there just is no correlation between the potential of our products in the market and the potential revenue stream to IMMUPHARMA and where we are now in terms of market capitalization. There just isn't. But we're not alone in that, frankly. So that is just a feature of our capital markets, unfortunately.

59:19 Tim, you had something to add? I think it's important to note that, you know, IMMUPHARMA today is not the IMMUPHARMA of yesterday. And the product, you know, is is the product and the team is different. Liking the product maybe to a football, and, you know, a good football team is gonna score many goals with the same football, bad team isn't. So, you know, I think that we have we've had a very short time as a as a new team to to get this this this ball rolling, so to speak. But, you know, the the we are in a much better position than before. We understand the products significantly more than before. There's been some fantastic science, and that all helps to to create a lot of conversation with with the our ultimate customers, the bio biopharma industry.

1:00:16 Yeah. And, Seb, and and I'm I'm going to wrap this up in a moment because a lot of these questions are repetitive in the sense they're asking similar things in just a slightly different way. But I think I'm going to finish on this one because it's an interesting question for Seb. And if I can find it again where did it go? Will IMMUPHARMA also develop commercial solutions for type two diabetes? Could there be a spin off from the type type one diabetes Kupikon Yeah. I think well, I think it's it's possible. I think that for now for now, it has been focused. Like, the the palm market have been focused on type one diabetes, but I think there are opportunities for for type two, clearly.

1:01:08 But, yeah, that's type one diabetes, it's the way to go to the market and then, you know, we can expand, I believe so. Okay. Alright. Alright. So I think we're going to wrap up there. Let let me just thank you all for taking the time. I don't know how long we've been on air, just about an hour. So I I hope we've reached our objective of doing this presentation today to address your obvious questions about why we've done the deal this this week, some broader questions on the strategy of the company and the progress of the last three, six, nine months, addressing what obviously are some conflicting statements we've made and trying to explain to you why we made a statement at one point and then it changes.

1:01:57 We're not flinching away from any of those, and I hope that we've had the opportunity today to address all of those. I know there's the facility to keep putting questions in, so if there are any more questions that come in after the presentation, then we'll try and address those. But at this point, I'm going to hand back over to Mark. That's great, Tim. Thank you and to the rest of the team for updating investors. If I could please ask investors not to close this session as we will now redirect you for feedback. On behalf of the management team of IMMUPHARMA PLC, thank you for your time, and have a good afternoon.