Since Phylomer libraries have the most comprehensive collection of distinct protein-based structures, they have a key versatility advantage over other libraries, such as classes of antibody alternatives. This feature of high structural diversity has resulted in Phylomer libraries successfully yielding high quality functional primary hits against multiple classes of intracellular and extracellular drug targets as well as in direct phenotypic screens.

In terms of revenue generation, how is the new business model different? Has it diverted Phylogica's focus from R&D?

Mr Woolf: When we were following the R&D model, we realized that it can be difficult to survive unless we have resources to raise large sums of money for the drug development process. Hence, we switched the model.

Very recently, Phylogica collaborated with Johnson and Johnson to discover new classes of drugs derived from Phylomer peptide platform. This is the biggest deal for us in breadth and scope as Phylogica will receive an initial technology access fee as well as research funding over the first 18 months of the collaboration.

Similarly, we have a $135 million deal with Pfizer signed in December 2010, and in 2011, we successfully completed the first stage of collaboration to discover novel peptide-based vaccines. In 2010, we signed another deal with MedImmune at a value of $100 million, to evaluate Phylomer platform to identify antimicrobial peptides for infectious diseases.