PharmAust Limited (ASX: PAA) had an impressive year of improved operational efficiency going by the result of the full year ended June 30, 2019. Revenue growth supplemented by narrowing net loss underscores a company back to a phase of robust growth. In addition to impressive financial results, the company also achieved significant milestone key among them being the acquisition of rights to the flagship compound for the development of cancer treatments.
Revenue for the fiscal year ended June 30, 2019, increased 33% to $4.4 million. Loss after income tax expense, on the other hand, shrunk to $1.6 million compared to $2.5 million reported a year ago. The company exited the year with net assets valued at $7.4 million up from $7.1 million a year ago.
Some of the key milestone achieved in the fiscal year included the signing of an agreement with a commercial arm of the University of NSW. Under the terms of the agreement, the company is to acquire all the rights of Monepantel (MPL) a molecule that is already showing great prospects in addressing various diseases of the central nervous system.
Monepantel Rights Acquisition
Approved as an anthelminthic drug, the compound is currently under distribution by Elanco Animal Health for the treatment of parasitic diseases in animals. The acquisition of MPL rights paves the way for PharmAust Limited to repurpose it for use in various veterinary clinical markets. The company also plans to introduce it into the human market
Monepantel approval in key jurisdiction such as the EU and Australia simplifies the work for PharmAust Limited as it moves to repurpose it in a bid to expand its areas of application. By divesting MPL IP PharmAust Limited should be able to pursue licensing and co-development deals with other interested partners.
PharmAust Limited has already inked a data and regulatory agreement with Elanco that paves the way for the development of Monepantel as an anticancer drug in dogs. The development should enhance the molecule application areas, further strengthening the prospects of generating significant value from it. The Agreement with Elanco also paves the way for PharmAust Limited to access safety and blood chemistry data initially collected by Elanco in relation to Monepantel development.
Even as PharmAust Limited continues to explore new application areas for the flagship Monepantel molecule, the company has already completed pre-clinical studies for the formulation of Monepantel into a tablet. The formulation was conducted in partnership with BRI Biopharmaceutical
“The new tablet will be taken into trials in canines with cancer and PharmAust expects this new tablet also to be taken into trials in humans with cancer as well as neurological diseases,” the company in a statement.
Going forward, PharmAust will focus its resources and time in developing anticancer products based on MPL. The company is currently under discussions with Elanco to commercially develop human cancer products based on the molecule. The company is also in the process of identifying clinical centers that will evaluate MPL tablets in humans as part of Phase I and Phase II trials Plans are also underway to undertake First-Line therapy in canines with occurring cancers.