iX Biopharma has reported net profit of $3.7 million for the 1HFY2022 ended December, reversing from its loss of $2.8 million in the same period the year before.
1HFY2022 earnings per share (EPS) stood at 0.49 cents from the loss per share of 0.41 cents in the 1HFY2020.
Revenue surged nearly 16 times to $13.2 million in the 1HFY2022 from $830,000 due to the income from the out-licensing of Wafermine to Seelos Therapeutics in November 2021.
As a result, the group recorded an overall gross profit of $12.1 million in the 1HFY2022 compared to a gross loss of $157,000 in the 1HFY2021.
According to iX Biopharma, the partnership with Seelos Therapeutics could also generate additional development and sales milestone payments of up to US$239 million ($320.9 million) and sales royalties moving forward.
Revenue for products and services increased by 69% y-o-y to $579,000 in the 1HFY2021, while nutraceuticals revenue fell 52% y-o-y to $234,000 due to supply chain and logistics disruptions in Australia and China due to Covid-19.
Cost of sales increased 7% y-o-y to $1.06 million due to the higher cost of raw materials and provision for stock obsolescence.
Total expenses increased 20% y-o-y to $6.9 million mainly due to expenses relating to the Wafermine out-licensing comprising a one-off expense of $920,000 and $940,000 in fees.
In the 1HFY2022, iX Biopharma recorded a net loss in currency exchange of $1.2 million compared to a net gain of $2.2 million in the same period the year before due to the appreciation of the Australian dollar against the Singapore dollar.
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As at end-December, cash and cash equivalents stood at $16.7 million mainly from the net proceeds of $9.6 million from the rights issue in July 2021.
No dividend was declared for the period.
“The positive set of results marks a significant inflection point in our business. The successful out-licensing of Wafermine is a validation of iX Biopharma’s business model of leveraging WaferiX sublingual drug delivery technology to repurpose existing approved drugs for new treatments. This is really the start of an exciting phase as we look forward to monetizing other drugs in our pipeline in line with our business model,” says Eddy Lee, chairman and CEO of iX Biopharma.
“The unlocking and monetizing of the Wafermine asset through the out-licensing deal frees up the Group’s resources to refocus on other products in its exciting pipeline such as sublingual dexmedetomidine,” reads the statement put out by the company on Feb 11.
Shares in iX Biopharma opened at 19.2 cents on Feb 11, before its trading halt at 12.55pm.
