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Highlights:
A number of biotech companies are facing 'second strike' motions during this AGM season, potentially leading to board spills.
Botanix Pharmaceuticals is advancing its US rollout of Sofdra, despite some shareholder opposition to director performance rights.
BCAL Diagnostics is preparing to launch its breast cancer diagnostic tool, Breastest, at a Sydney clinic in early 2024, with plans for broader local distribution.
The AGM season is proving to be a tense period for several life sciences companies, with a number facing 'second strike' motions that could result in a board spill. A second strike occurs when a company’s remuneration report is opposed by more than 25% of shareholders in consecutive AGMs. While rare, such motions could lead to a vote to remove the board, a scenario companies typically aim to avoid by addressing shareholder concerns.
Several biotech firms are in the spotlight this month, including Adherium, Atomo Diagnostics, (ASX:AT1) Island Pharmaceuticals, Mayne Pharma, and others. Vitura Health is among the companies facing scrutiny, having suffered a significant vote against its remuneration report last year, with 57% of shareholders rejecting the report. This year, the company is holding its AGM on the Gold Coast.
Meanwhile, Botanix Pharmaceuticals (ASX
) has seen some shareholder discontent over its remuneration report. At its recent AGM, 6.8% of shareholders opposed the report, while a larger proportion—up to 35%—rejected resolutions to award performance rights to directors. Despite this, the motions still passed, as the opposition did not reach the threshold required for defeat. Botanix is progressing with the US rollout of its treatment for excessive sweating, Sofdra, following US Food & Drug Administration (FDA) approval. The company is expanding its US sales team and has signed its first reimbursement contract.
BCAL Diagnostics, another Australian biotech, is preparing to launch its breast cancer blood test, Breastest, at the Sydney Breast Clinic in the first quarter of 2024. The company claims that Breastest offers greater accuracy and accessibility compared to traditional mammograms. Following this initial rollout, BCAL aims to expand the test’s availability across multiple sites in Australia, with plans for global distribution once local regulatory approvals are secured.
Despite some challenges, including a delayed launch of Breastest, BCAL’s local focus is set to provide broader access to crucial breast cancer screening, particularly in underserved regional areas.
