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Long

Small Pharma Big Backers and Partners - LONG SNG (Synairgen)

LSE:SNG   SYNAIRGEN PLC ORD 1P
Prudent Drug Discovery Company
Low market cap (appox £13m at time of writing).
Issues shares very rarely (last placing nearly four years ago).
Has material interest in its work from larger partners (Pharmaxis).
Sold interest in LOXL2 programme for £5m to Pharmaxis in December.
Pharmaxis continues to fund and develop LOXL2 inhibitors and Synairgen retains interest across all fibrotic indications at circa 17% of all partnering proceeds.
Potential of drug appears across multiple uses now (not just lung-related) and indications from Pharmaxis looking very good.
Recent interviews from Pharmaxis management suggest a good chance of a deal with major pharma in H2.
Low free float in the stock (60% in hands of major shareholders).
Major funds holding (Woodford Investment Management and Lansdowne Partners).
High profile investors holding stakes (Richard Griffiths and Leonard Licht).
These high profile investors have been raising, rather than reducing their stakes in the company, periodically.

For a risky smallcap biotech stock it appears well placed to survive and thrive, regardless of the short term success of a sale/licencing deal of LOXL2 by Pharmaxis , making it considerably less risky than most biotech stocks in the long term. However, the indications and noises being made about LOXL2 by Pharmaxis are looking as positive as you could hope for, and backed up by them putting their money where their mouth is in the first place and increasing their stake for cash.
Broke out of ascending triangle. Positive news on lead drug. Potential to go much much higher still.
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