Quarterly wrap: Paradigm and Dimerix advance clinical trials, MME loan book increasingly robust

It’s a wrap for the September quarter. Here are some of the latest highlights from a few ASX small and midcaps on their activities for the three months to the end of September.

Dimerix (ASX:DXB)

During the September quarter Aussie Biotech DXB continued to recruit patients to its lead global program, ACTION3 Phase 3 clinical study in Focal Segmental Glomerulosclerosis (FSGS), with Part 1 interim outcome expected to be announced on, or around, March 15 2024.

The company received US FDA approval for the Qytovra brand name for DMX-200. It also received regulatory approval in Malaysia for its ACTION3 Phase 3 study.

DXB received a $8.9 million R&D tax incentive rebate, enabling the company to repay the outstanding Radium Capital R&D loan balance of ~$2.8 million plus associated fees and interest.

During the quarter DXB also undertook successful completion of its second DSMB review of the FSGS trial, presented at the Bioshares Biotech Summit, received approval for its Paediatric Investigation Plan from the EMA and had confirmation its Phase 3 study design was appropriate for China.

Post quarter in October, DXB announced a license agreement for DMX-200 for the treatment of FSGS following regulatory approval in Europe, Canada, Australia and New Zealand.

DXB finished the quarter with a cash position of $6.8 million and is trading at 16.5 cents/share with a market cap of $69.89 million.

Paradigm Biopharmaceuticals (ASX:PAR)

During the quarter PAR completed enrolment of patients into stage one of the two-stage adaptive PAR_OA_002 Phase 3 clinical trial evaluating injectable pentosan polysulfate sodium (iPPS) for the treatment of pain associated with knee osteoarthritis (OA).

PAR achieved its target of 120 clinical trial site activations. It also reported positive data from Phase 2 of its OA trial (PAR_OA_008). PAR now has multiple data sets supporting that 2mg/kg twice weekly dose of iPPS in treating knee OA, with the dosing regimen to form the basis of future clinical development and registration programs.

Discussions with potential regional partners are progressing following release of data, which is supportive of iPPS slowing progression of OA.

R&D expenditure for the quarter was $21.9 million compared to the previous quarter of $16.15 million, with the extra spend associated with trials into OA and the Mucopolysaccharidosis VI (MPS VI) Phase 2 study. Anticipated spend for Q2 FY24 is expected to be lower.

PAR says it streamlined operations and improved efficiencies over the previous two quarters to ensure capital is focused on progressing the OA clinical program toward registration. A FY23 R&D tax incentive refund of $7.3 million is expected during Q2 FY24.

PAR ended the quarter with a cash balance of $33.6 million and is trading at 61.5 cents/share with a market cap of $172.5 million

MONEYME (ASX:MME)

The fintech lender reported sustainable returns from an increasingly robust loan book for Q1 FY24, saying its loan book remained stable, maintaining a healthy net interest rate margin of 11% for the quarter.

MME’s focus on higher-credit quality borrowers and secured assets continued to improve its credit profile with the measures positively impacting its quarterly credit loss performance.

Among financial highlights for the quarter:

Gross revenue of $55m Q1 FY24, in line with Q4 FY23
Strong net interest margin of 11% in Q1 FY24, up from 10% in Q4 FY23(10%)
Gross customer receivables of $1.1 billion, in line with Q4 FY23
Principal originations of $130m for Q1 FY24, in line with Q4 FY23 of $127 million
Secured assets increased in Q1 FY24 to be 46% of the total loan book, up on Q4 FY23 (44%)

MME says delivering sustainable statutory and cash NPAT remains its focus.

MME is trading at 6.1 cents/share with a market cap of $48.80 million.

Wisr (ASX:WZR)

Fintech lender reported operating cash flow of $5.4 million, a 22% improvement on the prior quarter.

OPEX decreased 4%, versus Q4 FY23, with net interest margin (NIM) run rate of 5.6% on new business written in September 2023. Quarterly revenue was $24.3 million, a 1% decrease on Q4 FY23 and a 15% increase on Q1 FY23.

WZR had a loan book of $887m, a decrease of 5% on Q4 FY23 as it continues to moderate loan origination volume to prioritise profitability and maintain a strong balance sheet.

The company reported a stable on-balance sheet 90+ day arrears of 1.26% and a high quality loan book with an average credit score at 780, reflecting ongoing management of credit policy settings and focus on uplifting arrears management.

Loan originations of $50 million was a 6% decrease on Q4 FY23, which WZR says continues the deliberate moderation of loan origination volume and maintaining a strong balance sheet. It has $1.7 billion in total loan originations to date.

“Our moderated loan volume strategy remains in place with a continued focus on the maintenance of balance sheet strength and attractive loan unit economics,” CEO Andrew Goodwin says.

“Revenue was broadly flat quarter on quarter notwithstanding a small decrease in loan book, and losses increased given the ongoing maturing of the loan book.”

He says the macroeconomic environment and resulting impact on arrears will continue to be closely monitored.

“Ongoing focus on investment in collections strategies is a priority for the business with work well underway to deliver various initiatives, including investment in extra resources and technology,” he says.

WZR ended the quarter with $20.3 million unrestricted cash balance and is trading at 2.9 cents/share with a market cap of $35.5 million.