iX Biopharma H2 loss widens to S$8.3m on fair value adjustments

PHARMACEUTICAL company iX Biopharma : 42C 0% posted an S$8.3 million loss for the second half of the fiscal year ended June 2022, sinking deeper into the red from a S$5.4 million loss in H2 FY2021.

This came as the group recorded a negative fair value adjustment of S$3.1 million from its shares in Nasdaq-listed Seelos Therapeutics, which the group received during H1 to partially satisfy a US$9 million upfront fee under its Wafermine out-licensing agreement.

The depreciation of the Australian dollar against the Singapore dollar further dragged on the group’s bottom line, contributing to a wider S$710,000 in currency exchange net losses compared to the previous year’s S$359,000 loss.

In its press statement on Tuesday (Aug 23), the group said it would have recorded a profit before tax of S$1.1 million excluding the foreign exchange loss and the fair value adjustment.

Revenue for H2 rose 32 per cent to S$1.2 million from S$915,000 previously, driven by the out-licensing of the group’s lead drug, Wafermine, to Seelos.

Further growth in revenue from the speciality pharmaceuticals segment due to higher medicinal cannabis product sales and services also helped to more than offset a 15 per cent year-on-year decline in revenue contributions from the nutraceutical segment amid supply chain and logistics disruptions in Australia and China.

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The latest set of half-yearly results brings iX Biopharma’s loss for FY2022 to S$4.6 million, from its S$8.2 million loss in the previous year.

Loss per share (LPS) for H2 FY2022 stood at 1.1 Singapore cents as opposed to 0.77 cent a year ago, resulting in a full-year LPS of 0.62 cent as opposed to FY2021’s LPS of 1.19 cents.

Cash and cash equivalents grew to S$13.5 million as at end-June 2022 compared to S$6.2 million the previous year, lifted by net profits from the group’s recent rights issue as well as cash received from the out-licensing of Wafermine.

“With our strong cash balance, we look forward to continuing the momentum in FY2023 and executing our strategic plans, including developing a new pharmaceutical pipeline and expanding into new markets next year,” said Eddy Lee, chairman and chief executive of the group.

Shares of Catalist-listed iX Biopharma ended Monday S$0.001 or 0.6 per cent lower at S$0.164.