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Medlab just axed another Q3 and now the Aussie world beater’s ready to deploy its vast global network
Health & Biotech
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After a solid quarter, Medlab Clinical is also well funded to progress on its pipelines, with cash in the bank of over $8m.
Australian biotech Medlab Clinical (ASX:MDC) has completed a successful Q3 as the company consolidates on its vast global partnerships.
For the quarter, cash receipts from customers amounted to $0.9m on the back of strong operating revenues of $1.3m.
The month of March saw a cash burn rate of $0.3m, totalling $2.6m for the full quarter.
The majority of Medlab’s expenditure, including salaries, are research and development (R&D) related, so they’ll be largely back in the bank thanks to innovative government tax rebates.
Medlab also expects future monthly cash burn rate to continue to be below $1m, as the company optimises savings from divesting and licensing out its Australian nutraceuticals business.
The company is well funded and has managed to build up a strong cash position, with $8.6m in the bank as at the end of March.
Forward revenue already confirmed for the balance of 2022 totals around $5m, and includes the $3.8m R&D grant to be received this September.
The $5m figure does not include revenues from potential partnering deals Medlab is currently working on.
Progress in NanoCBD and NanaBis
As announced yesterday, the NanoCBD cannabis program is ready to be exported to the UK market pending the final import license from the UK Government.
The NanoCBD is one of MedLab’s two cannabis programs with active ingredients that contain 16.67 mg/mL cannabidiol (CBD), and less than 0.2% THC.
The drug is administered using the company’s proprietary NanoCelle system – a sub-micron spray applied to the oro-buccal membrane, which is the mucous membrane lining the inside of the mouth.
In Australia, NanoCBD is expected to be approved by the TGA (Therapeutic Goods Administration) for over-the-counter Australian pharmacy sales under an accelerated regulatory model.
The drug is already made available under the Australian Special Access Scheme, after a new ruling by the TGA in September last year.
Meanwhile, NanaBis, which is an investigative cannabinoid program for patients with cancer bone pain, has shown significant success in the clinic.
With over 1,000 Australian patients under clinical management, Medlab says it continues to see positive signals that demonstrate pain reduction and improvements in quality of life after using NanaBis.
Progress is now being made in preparing NanaBis for a US FDA application.
NanoCelle’s progress
NanoCelle is in the process of being granted global patents for 43 countries, which will ensure exclusivity and protection of intellectual property for the next 15 years.
The novel platform has generated a lot of interest from pharmaceutical companies, demonstrated by the positive feedback that emerged at the recent UK Jefferies Biotech Health Conference.
The NanoCelle delivery platform allows passive diffusion of a drug’s active ingredients directly into the bloodstream via oral-buccal, , intranasal and transdermal, or topical delivery.
It’s ideal for people who have difficulties swallowing, experience gastrointestinal complications, or poor liver function which can limit absorption, or those that fear needles.
Under a government grant, Medlab has established joint ventures with both the UNSW and Macquarie University for preliminary research into NanoCelle to deliver RNA vaccines nasally.
It’s part of the development in Medlab’s strategic push into the vaccine space.
Looking ahead
Over the next 12 months, Medlab says it will work on getting the NanoCBD program to the US – following recent success in Australia and the UK.
The company is also expecting an Australian government readout into the NanoCelle siRNA COVAX collaboration trial this October.
Meanwhile, Medlab says its active engagement with over 70 partners could potentially provide it with opportunities to win five major partnering deals in the next year.
This article was developed in collaboration with Medlab Clinical, 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.
