On 12 February 2019, Invion Limited (ASX: IVX) announced that it has completed the spin-out of its respiratory assets into a new company, Chronic Airway Therapeutics (CAT), which Invion says will enable both companies to focus more on their respective assets.
The shareholders of Invion has supported the transaction at the extraordinary general meeting which was held on 30 January 2019. Under the spin-out, each shareholder of Invion who is eligible will receive one Chronic Airway Therapeutics share for each Invion share that they hold.Â
The Chief Executive of Invion Dr Greg Collier said that the spin-out would be beneficial to both the companies. With the spin-out of Invionâs respiratory assets, they will be able to focus more on the global development of the PhotosoftTM technology for treating cancers. This is important for the company on the back of its plan to have a topical formulation of its improved photosensitiser product IVX-P02 for the treatment of skin cancer ready in 2019 for human clinical studies.
Dr Collier also told that CAT can equally concentrate on the development of nadolol and zafirlukast including in China for the treatment of respiratory disease, where regulatory interactions with the National Medical Products Administration have commenced.
The Executive Director of Invion Dr Mitchell Glass will retire from his position on the Board of Invion once the transaction is complete. He will become the CEO and Managing Director of CAT and will lead the further development of nadolol and zafirlukast going forward.
Mr Alan Yamashita who has more than 40 years of experience in investment management, investment banking and alternative investment joins the Invion Board. He was a Managing Director and Head of Asia Capital Markets at Merrill Lynch as well as had sixteen years of experience in Goldman Sachs, however currently, he is a Managing Partner at a private investment called Polar Ventures. The company is into providing capital, strategic and operating solutions.
Dr Collier said that the company warmly welcome Alan as a Non-Executive Director. Alanâs experience in finance, investment and capital markets will broaden and enhance the composition of the Board as Invion moves into the next growth stage.
As per the boardâs corporate governance policy, Mr Yamashita is not an Independent Director since he is a business partner with Invion Chairman Thian Chew in Polar Ventures.
On the price-performance front, the stock of Invion is currently trading at $0.018 with an increase of 5.8% approximately during the dayâs trade. It has a market capitalisation of circa $93.37 million. The stock has yielded a negative YTD return of 5.56% and posted returns of -55.26% and -29.17% over the last six months and three-months period respectively. It has a 52-week high price of $0.058 and a 52-week low of $0.011, with an average volume of ~1.34 million.
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With the pandemic continuing to affect the globe, healthcare companies are evaluating their lead compounds for COVID-19 treatment. Future revenue for these stocks depends on the probability of launching an approved treatment in the market.