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Highlights
- Invion and Wellnex Life implement share consolidations.
- Invion begins trial for non-melanoma skin cancer, while Wellnex migrates to the London Stock Exchange.
- Artrya progresses toward US FDA approval for its cardiovascular AI device.
Share consolidations are often utilized by companies to enhance their image in the market, despite not altering their fundamental value. For companies with penny-level valuations, this strategy can help improve perception. Invion (ASX:IVX) and Wellnex Life (ASX:WNX), both operating in the life sciences sector, have recently opted for share consolidations to manage their substantial shares on issue.
Invion, a developer of photodynamic treatments for cancer, seeks to reduce its shares from approximately 6.76 billion to 67.6 million, a one-for-hundred consolidation. This move is expected to provide a more attractive share structure as Invion launches a clinical trial for non-melanoma skin cancer in Queensland. This adaptive phase 1-2 trial will vary in size, depending on dosing needs, with the number of patients potentially ranging from 18 to 174. Invion’s executive chair, Thian Chew, highlights that many of the company's shareholders hold shares due to legacy reasons, with limited understanding of the company’s current operations.
Wellnex Life, a supplier of consumer health brands, has already completed its share consolidation at a ratio of 50 to one. The company reduced its share base from 1.4 billion to around 28 million. Recently, Wellnex reported revenue of $16.9 million for 2023-24, though the first half of the year saw a decrease, primarily offset by the acquisition of Pain Away, a topical pain relief brand. The company is in a transition phase and is planning to move its listing to the London Stock Exchange.
In other news, Artrya (ASX:AYA) has made strides in securing US Food and Drug Administration (FDA) approval for its AI-powered device, Salix, which detects dangerous plaque in coronary arteries. This comes after a previous setback with the FDA. The company is confident of approval in early 2025, citing a substantial market opportunity in the US with approximately 4.4 million coronary scans performed annually. The device, already approved in several countries, could significantly improve detection rates, potentially reducing unnecessary invasive procedures.
Meanwhile, Island Pharmaceuticals (ASX:ILA) is preparing for a phase 2 trial of its dengue fever treatment, ISLA-101. The company expects interim trial results by the end of 2024, with full results in 2025.
