Australian-headquartered global pharmaceutical leader, SUDA Pharmaceuticals Limited (ASX: SUD) is engaged in the reformulation of existing drugs and provision of medication via the oral mucosa. The company uses its exclusive OroMist® technology to create low-risk oral sprays to reformulate existing pharmaceuticals. Progressing in the evolution of drug delivery technology, SUDA has improved the bioavailability of the medication from 25 % to as high as 95 % via its OroMist® technology.
The oro-mucosal drug delivery firm has recently released its Annual Report for the 12 months ended 30th June 2019. During the reporting period, the company recorded a considerable revenue of $1.2 million (186% up) against the revenue of $0.43 million reported in the last financial year.
Significant Events During FY19
SUDA observed the following significant developments during FY19:
During FY19, the company also delivered a loss of $7.8 million for the period, pertaining to the impairment of its ArTiMist® project. However, the company is confident of obtaining a successful outcome from its appeal lodged against the TGA decision for the review of ArTiMist®’s marketing approval.
SUDA’s cash and cash equivalents at the end of FY19 improved substantially from $0.098 million in FY18 to $4.3 million.
Events Subsequent to FY19
Though FY19 was a year of intense activity across all fronts of SUDA’s business, the company continued its growth trajectory and experienced the following developments subsequent to FY19:
Significant Event Post FY19
SUDA recently notified about the resignation of Mr Stephen Carter from the post of Managing Director and Chief Executive Officer with effect from 23rd September 2019.
Mr Carter, who holds extensive pharmaceutical industry experience, has served SUDA’s board and management team for nearly nine years. He joined the company’s board in 2010, when SUDA was known as Eastland Medical Systems. He has been instrumental in the resolution of the legacy issues from Eastland Medical Systems and to the advancement and repositioning of SUDA.
Following the resignation of Mr Carter, SUDA’s Non-executive Chairman, Mr Paul Hopper will serve as the temporary Executive Chairman until the company identifies a permanent replacement of CEO. Mr Carter will remain as a consultant to the company and will continue to provide technical support to SUDA moving forward, to ensure a gentle handover to the new CEO.
According to Mr Hopper, Mr Carter has taken SUDA from a single product company to owning the OroMist® technology, with several R&D projects and many on the brink of commercialisation. He believes that Mr Carter has left the company in a very strong position for future growth.
Mr Hopper has more than 25 years of experience in the medical, life sciences and healthcare sectors. He has served as either Chairman, CEO, Founder or executive director in more than fourteen companies in Australia, Asia and the United States. Previously, he has served to boards of Fibrocell Science, Viralytics, Somnomed, Polynoma and pSivida.
At present, he is the Chairman of Imugene Limited (ASX: IMU), non-executive director of Prescient Therapeutics Ltd (ASX: PTX), Chairman of Vaxinia Pty Ltd, Chairman of BioScience Oncology Pty Ltd and Chairman of Semexion Pty Ltd.
SUDA’s Future Outlook
SUDA is adopting a staged business and marketing strategy while moving along its growth path and remaining well-informed with the developments in the pharmaceutical industry.
Currently, the Company’s drug delivery business is in different stages of development. Going forward, SUDA intends to take the following steps:
- Adopt measures to attain technical, financial, clinical and regulatory risk reduction by amalgamating the sale of certain assets and, simultaneously, undertake internal development of various projects and collaborate with partners on others.
- Development of its Anagrelide and Midazolam projects, and partnership or divesture of ArTiMist®.
- Adoption of a multi-pronged commercial strategy for its project pipeline that will provide income streams in the short-term to medium-term and offer the potential for a large upside in the future.
SUDA’s board of directors believe that its current strategy and activities will lay the foundation on which it will realise the maximum potential value in future.
SUDA’s stock settled the day’s trading at $0.004 on 27th September 2019 with approximately 3.56 billion outstanding shares.
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