Annual Report 2019
During the year, the company secured a number of clinical milestones for their platform technologies.
In particular, the Company announced positive preclinical trial results for Progenza for the treatment of allodynia, a condition in pain occurs from what is normally non-painful stimulation of the skin, such as a light touch. These early-stage results are encouraging and support the opportunity for the Progenza platform technology to treat pain as well as modify the underlying diseases which cause pain.
The company is pleased to have also secured a range of patents in China and Europe for the use of mesenchymal stem cells (MSCs), which help support MSCs therapies in these important markets. Worthy of note is that Regeneus received a notice of intent from the European Patent Office to grant a European patent for Progenza across multiple countries, laying the foundations for the development of this platform in the region.
Aside from progress in Progenza and Sygenus, the company also announced positive results for the Phase I safety and tolerability ACTIVATE trials, the first trial for RGSH4K, the autologous tumour vaccine product for solid tumours. These results are encouraging and enhance the value of this asset as the potential is explored to divest it under a revised corporate strategy.
The financial results for the 2019 financial year demonstrate commitment to deliver on the restructure and revised strategy.
The Board and management had already outlined a clear target to reduce borrowings. The $3.8 million in borrowings, as at 30 June 2019, was reduced to $1.1 million in October 2019, following the recent receipt of the R&D Tax Incentive rebate.
During the first quarter of 2020, the company completed a $5.5 million capital raise. This capital raise was well-supported by new and existing investors and directors. This is an important validation of the revised strategic direction and overall vision for Regeneus.
While lying outside the financial year, the company recently announced a series of cost-containment initiatives that align with strategic priorities. This includes reducing operating costs to $250,000 a month, representing a 50 per cent reduction year-on-year. These activities will strengthen the Company's cash position while focusing on commercialising Progenza for osteoarthritis in Japan.
Looking ahead into the 2020 financial year, the Company is now more robust with the restructure and look forward to advancing the platform technologies, particularly Progenza.
In the new financial year, the company is focused on completing Phase 2 trial and the commercialisation of Progenza for the treatment of osteoarthritis, with the aim of a product launch in Japan in 2023. In parallel, a new scientific partnership model - which sees Regeneus partnering with leading university and research bodies - will allow development of both the Progenza and Sygenus platforms and generate long term shareholder value.
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About Regeneus Ltd
Regeneus Ltd (ASX:RGS) is a Sydney-based clinical-stage regenerative medicine company using stem cell technologies to develop a portfolio of novel cell-based therapies to address significant unmet medical needs in the human health markets with a focus on osteoarthritis and other musculoskeletal disorders, neuropathic pain and dermatology.