ASX Quarterly Wrap: Growing pipeline, milestones, and bullish guidance were the themes for these stocks
It’s the quarterly season again as the ASX market announcements page becomes increasingly flooded with update lodgements.
To save you the trouble of trudging through it all, we’ve wrapped up the highlights from some of the reports that caught our eye.
Cloud network specialist Netlinkz is entering a period of rapid expansion as both the scale and scope of its business activities open new geographical markets and key partnerships.
Revenue for the quarter was $4.7m, a 20% increase over Q3 FY22, and YTD 18% increase over the prior year at $15.2m. Cash receipts for the quarter were $3.7m, bringing YTD cash receipts to $15.6m or a 30% increase on YTD FY22.
During the quarter, Netlinkz entered into an agreement with SpaceX for Netlinkz to be a global reseller of the enterprise, mobile and maritime Starlink satellite based high-speed, low-latency broadband internet.
The Starlink sales pipeline grew by ~$25 million during the period, with enquiry level value over $85 million (hardware and NaaS subscription revenue value).
The company’s AOFA and iLinkAll businesses also continue to increase year-on-year revenue, with a 13% increase over Q3 FY22 and YTD. The China business now represents a lower percentage of the group given growth in revenue outside in the rest of the world.
The SSI Lawful Interception business meanwhile continues to perform strongly, with an increase in revenue of 36% over the previous quarter and a 61% increase on Q3FY22.
A drawdown in Netlinkz’s Regal Funds Management facility during the quarter will fund Starlink inventory purchases to meet expected demand. The company is also reviewing funding options for further investment in Starlink inventory.
A cost reduction program was successfully implemented in iLinkAll business and in product development in Australia.
Netlinkz also saw significant Asia-Pacific partnership terms agreed during the quarter, which are subject to final documentation with telecommunications companies to sell Network as a Service (NaaS).
Prescient continues to make solid progress on all fronts. Positive results from the company’s clinical programs underline its position as an emerging global leader in the next generation of personalised cancer therapies.
During the quarter, targeted therapy PTX-100 continues to demonstrate encouraging activity as the program builds clinical and regulatory momentum. The company reported encouraging clinical results from the ongoing Phase 1b trial of PTX-100, led by world-renowned cancer specialist and principal investigator, Professor H. Miles Prince AM in Melbourne.
Also in March, PTX-100 received Orphan Drug Designation from the US FDA for the treatment of all TCL (T cell lymphomas). This designation was broader than requested by Prescient, and underscores the importance of developing more effective therapies for this patient population.
The Prescient team is now working to schedule a Phase 2 trial in the same patient population and will seek accelerated approval with the US FDA in an orphan indication. Accelerated approval could pave the way for a Phase 2 trial, enabling expedited regulatory approval of PTX-100.
Meanwhile, the Phase 1b trial of PTX-200 and cytarabine in relapsed and refractory AML is actively recruiting, following intermittent institutional disruptions beyond Prescient’s control. The trial has yielded four patients with complete remissions, and another with a partial remission so far.
And while much of the focus this quarter has been on PTX-100, ongoing development on the OmniCAR platform continued during the quarter, particularly in the AML and Her2 programs. During the quarter, OmniCAR continued its progress towards first in human trials.
Prescient ended the March quarter with a cash balance of $19.9 million.
During the last quarter, Omega has achieved some significant milestones.
Chief amongst which was the successful spud in March, and then completion in April of Omega’s first exploration well, Canyon-2, where results have exceeded expectations.
The company was also able to secure the strategic investment of Tri Star via a rights issue. As part of the transaction, Omega welcomes Andrew Hackwood (Tri Star country manager) to the Omega board, bringing his extensive experience which will be of immense value in guiding Omega into the operational phase.
Omega operates three tenements in South East Queensland.
During the period, Omega commenced work on its drilling program at Canyon 2 well, which is the first of two wells. The Canyon-2 well was spudded on March 19, and drilled to a total depth of 3806m MDRT (Measured Depth Rotary Table). The well will be suspended for completion before hydraulic stimulation and flow testing during the next phase.
Encouraging gas shows continued into the upper Back Creek Group, therefore a decision was made to deepen the TD of the well to drill through the upper Back Creek Group. This well is a potential additional reservoir, with significant gas peaks being recorded while drilling over an interval of 72m.
During the quarter, Omega has also initiated a review of surface infrastructure to increase storage capacity and improve operational efficiency. This review includes site engineering at Bennett 4 to accommodate a larger storage tank. Production is expected to resume from both wells following completion of the review and the relocation of storage tanks to Bennett 4. This is expected to happen in Q3.
Cash and cash equivalents as at March 31 was $9.9 million, compared with $11.3 million at December 31, 2022.
The quarter has seen continued growth for Wellnex in its owned brands and IP-licensing segments.
The company generated record revenue in first nine months of FY23 of $22.2 million (unaudited), up 79% on pcp. As a result, Wellnex has guided the market to a full year revenue of $29 million, and FY24 guidance of $47.2 million.
Cash receipts in the quarter was $6.2 million, an increase of 72% on pcp. However, net cash loss from operations for the period was -$1.5 million, primarily due to an increase in one off brand marketing investment of circa $450,000.
During the quarter, Wellnex launched four new products under the Wakey Wakey brand with ranging confirmed in around 2,000 stores across Coles, Woolworths and Chemist Warehouse stores nationally. The company also launched new brand Nighty Night with ranging confirmed in Coles, Woolworths and Chemist Warehouse nationally in also around 2000 plus stores.
In addition, Wellnex launched Pharmacy Own in an exclusive distribution agreement with Australia’s only fully integrated pharmaceutical and medical consumable distributor, CH2. During the quarter, Wellnex also forged a Joint Venture agreement with Chemist Warehouse for the launch of medicinal cannabis for the SAS-B market.
An agreement with OnTracka was also signed to launch new telehealth application to provide a one-stop solution for patients to be prescribed medicinal cannabis products.
Leading bio-materials company Nanollose had a productive quarter, with a maiden US patent secured for its fibre. This marks the company’s third patent globally and ongoing validation of its IP and protection in the world’s largest consumer market.
During the quarter, the company signed a two-year extension of collaboration agreement with leading multinational fibre company, Birla Cellulose. Nanollose has now completed a second pilot spin with Birla Cellulose, with the major objective being to produce a batch of fibre with a higher microbial cellulose content than Nullarbor-20.
Production was split into two fibre spins to produce the company’s second batch of Nullarbor-20 and its first batch of Nullarbor-30. Approximately 90kg of Nullarbor-20 was produced, consisting of 20% microbial cellulose and 80% FSC certified wood pulp. Further, around 150kg of Nullarbor-30 was produced which consisted of 30% microbial cellulose and 70% FSC certified wood pulp.
The production of Nullarbor-30 at the higher microbial cellulose content of 30% is a significant outcome for this second pilot spin, and bodes well for the company’s strategy of developing a range of Nullarbor eco-friendly fibres for different markets.
A third pilot spin is now expected later this quarter, with fibre from the second spin to be converted to fabrics and garments with selected partners.
Looking ahead, Nanollose says it will look to advance broader distribution of its samples of yarns and fabrics to partners for appraisal and garment production.
The company will also work towards transitioning collaboration agreements to commercial supply agreements, while developing and commercialising its Jelli Grow and plastic-free vegan leather material.
The European based pharmaceutical company says the last quarter was significant as it advanced progress toward Investigational New Drug (IND) submission with the FDA for key proprietary products, CimetrA and ArtemiC.
MGC Pharma completed the pre-clinical rodent studies on CimetrA in January, a major step in the clinical pathway to the targeted US FDA IND submission. No anomalies were observed over the course of the study, nor were any clinical or behavioural adverse events recorded.
In March, ArtemiC, MGC Pharma’s proprietary, clinically tested COVID-19 treatment, was granted over-the-counter (OTC) status on the National Drug Code Database (NDC) of the FDA, facilitated by MGC Pharma’s supply and distribution partner, AMC Pharma. ArtemiC can now be found on the FDA National Drug Code Directory under the code 83278. AMC has also submitted a purchase order to MGC to the value of US$2 million.
Elsewhere, the first patient was enrolled in the company’s proprietary data collection app and machine learning algorithm, ZAM, in order to log the data from an observational study monitoring the effects of CannEpil, MGC Pharma’s epilepsy treatment.
Revenue for the March quarter was lower than average mainly due to seasonality issues with new year sales and establishing new pharma regulatory approvals and distribution channels for CannEpil in the UK and key EU markets. However, admin, staff and corporate costs were reduced by 3% in the March quarter due to a costs rationalisation review.
During the quarter, MGC Pharma concluded a successful fundraise of around £2.09m post quarter end, supported by new and existing shareholders, brokers, and high net worth individuals in both the UK and Australia.
At Stockhead we tell it like it is. While Netlinkz, MGC Pharma, Nanollose, Wellnex Life, Omega Gas & Oil, and Prescient Therapeutics are Stockhead advertisers, they did not sponsor this article.