Big R&D refund for Opyl as its AI clinical trial recruitment platform takes off

The taxman has given Opyl a financial boost as it now actively recruits to clinical trials in APAC and the Americas through its Opin platform.

Medtech Opyl (ASX:OPL) has received a $361,427 research and development (R&D) tax incentive refund for expenses from the 2021 financial year.

The tax refund is for eligible R&D activities predominantly relating to ongoing development of Opyl’s digital clinical trial recruitment platform, Opin, and expansion of its AI-enabled clinical trial design and predictive software, Trial Key.

The company said it is a material increase on a $249k refund received in the prior financial year reflecting the increased investment by the company in its two clinical trial efficiency platforms.

Clinical research market strength

The global clinical research services market size was estimated at US$44.07 billion in 2020, expected to reach US$48.01 billion in 2021, and is projected to grow at a CAGR of 9.31% to reach US$82.19 billion by 20271.

One of the fastest-growing segments of this market is the digital technology-based clinical trial service.Opyl solves two major problems for the clinical trials industry: accelerating patient recruitment and using AI to design smarter trials. Both of these are leading causes of clinical trial failure and new therapies not reaching the market.

Opyl CEO Michelle Gallaher said the company’s intensive investment in researching, developing, and rapidly releasing new features and functionality on Opin has delivered pleasing early revenues. The company is now actively involved in recruiting for clinical trials in APAC and the Americas through the platform.

“To date, using our platform has shown we are able to accelerate clinical trials and improve patient recruitment across a number of key study attributes,” Gallaher said.

“As Opin continues to hit development and patient registration milestones, new customers are signing on with patient recruitment challenges and our revenues are steadily growing accordingly.

“We are delighted to report that on all of the patient recruitment projects Opin is currently working on, the platform is delivering ahead of the recruitment plan and saving research teams valuable time and money.”

Strong financial position

Opyl recorded positive Q2 FY22 results with a closing cash balance of $1.24 million on the back of executing key contracts for its Insights projects.

Receipts from customers for Q2 FY22 were $228k, up from $136k in the previous quarter. Trade and receivables increased to ~$534k with 74% attributable to November and December which the company expects to collect in Q3 FY22 based on 90-day terms.

The size of its AI-led social media insights services contracts increased, recognising the conversion of several larger opportunities that the company has been working on over an extended period and is expected to flow into Q3 FY22.

This article was developed in collaboration with Opyl, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.