Continuing its practice of delivering solid operational results, oro-mucosal drug delivery firm SUDA Pharmaceuticals Ltd (ASX:SUD) has recently declared results for the half-year period ended 31st December 2019. The Company continued to focus on attracting world-class pharmaceutical partners, securing three new agreements during the period.
Let’s gaze through the key developments reported by SUDA during the half-year:
Secured Three New Agreements
During the period, the Company signed three new agreements with Cann Pharmaceutical Australia Ltd (CPA), Laboratorios Ordesa, S.L. and Sanofi-Aventis Groups.
Agreement with Cann Pharmaceutical Australia Ltd (CPA)
In October 2019, the Company finalised a Product Development, Licence and Supply Agreement with CPA, to develop a novel oral spray of pharmaceutical-grade cannabinoid derivatives for treating motion sickness, drug resistant epilepsy and melanoma across the globe.
The key terms of the agreement included an upfront fee of $200,000, of which $100,000 is associated with milestones, commercial milestone payments, development milestone fees and royalties on commercial sales.
Both the companies will determine product development costs (to be funded by CPA) following the completion of feasibility study, fully funded by CPA.
Co-Development Deal with Laboratorios Ordesa, S.L.
In December 2019, the Company entered into a feasibility and option agreement with Ordesa, a Spanish pharmaceutical firm that focuses on health, nutrition and well-being. Both of them intend to co-develop a significant consumer product for the paediatric market which could, potentially benefit from:
- the OroMist® technology’s superiority in terms of less drug being required and speed of onset of action.
- a better patient delivery route.
Feasibility Agreement with Sanofi-Aventis Groupe
Sanofi and SUDA entered into an agreement in December 2019 to investigate the feasibility of OroMist® Technology and Sanofi’s selected active ingredient. Under the agreement, SUDA will undertake a fully funded feasibility study, whose outcomes will pave the way for further collaboration with Sanofi.
Appointed New CEO – Mr Michael Baker
Following the resignation of SUDA’s former CEO, Mr Stephen Carter, the Company appointed its new CEO, Mr Michael Baker in November 2019, whose term commenced on 2nd January 2020.
He joined SUDA with an extensive set of experience, including working for a leading life science fund of Australia, Bioscience Managers since 2017.
Completed Share Consolidation
The Company finalised the consolidation of its share capital following the approval of its shareholders at the Annual General Meeting held on 12th November 2019. The share consolidation was conducted on a one for twenty-five basis, as a result of which the shares and options in the Company were converted as follows:
Review of Financial Performance
SUDA reported a revenue of $369.8k for the half-year period ended 31st December 2019.The Company reported a loss before income tax of $7.7 million, which included an impairment loss for its ArTiMist® project for $5.34 million. The Company’s Board continues to assess alternatives for the ArTiMist® project.
Subsequent to the half-year, the Company issued 2.8 million unlisted options to Mr Michael Baker and 1.6 million unlisted options to Mr Paul Hopper, Executive Chairman, under the ESOP pursuant to resolution of shareholders at the Annual General Meeting.
In a nutshell, SUDA delivered a considerable operational performance during the half-year, in line with its product development goals. The Company seems to be ideally positioned to achieve its 2020 objectives, backed by its robust OroMist® technology and highly efficient management team.
SUD traded at $0.058 on the ASX on 4 March 2020 (1:44 PM AEDT).
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