- New strategy to address global pain market
- Positive preclinical data for Progenza to treat neuropathic pain
- Company restructure and cost containment initiatives implemented
- Recent $5.5m capital raise strengthens cash position and supports the revised strategic direction
- $1.5m in R&D Tax Incentives received for FY19
- Net operating outflow costs of $250k per month
- Cash balance as at 30 September of $1m
During the quarter, the Company outlined its revised strategic direction to address the global pain market with a focus on its lead platform technology, Progenza. Activities to support this are underway, including ongoing negotiations for a commercial licensing partnership for Progenza to treat osteoarthritis (OA) in Japan, and discussions with universities to further develop and commercialise the Company's core platform technologies (Progenza and Sygenus).
In July, Regeneus announced Progenza demonstrated positive preclinical results in treating allodynia, a skin pain condition caused from non-painful stimulation of the skin, such as a light touch. A single injection of Progenza showed a complete reversal of the symptoms of allodynia. The early results are encouraging and support the Company's growth strategy to target the pain market.
During the period, Regeneus successfully completed a $5.5m capital raise with strong support from investors and Directors. The Company believes the additional funds, combined with the cost containment initiatives - which have already reduced operating costs by 50 per cent - strengthen its cash position and provides a sufficient runway to secure the aforementioned Japan commercialisation partnership.
While lying outside the period, the October receipt of $1.5m in R&D tax incentive rebate has reduced the Company's borrowings from $3.8m at 30 June 2019, down to $1.1m currently of Directors' loans.
Regeneus CEO Leo Lee, noted the quarter was focused on the implementation of financial and operational activities to support the revised strategic direction.
"The Company has made positive progress in the new financial year by taking important first steps to execute the revised strategic direction," said Mr Lee.
"Our recent restructure places us in a strong financial and operational position to deliver on our next major milestone: securing a commercial licensing partnership for Progenza to treat osteoarthritis (OA) in Japan. We look forward to updating investors on this as well as our progress across other indications."
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.