Great to see the repayment of the R&D loan re-aligned with AGC milestone payments. It shows great confidence in imminent commercialisation deal both from RGS management and Paddington St Finance.
I would not be surprised if the incoming deal had a financial bonus included. AGC milestone payment is a given, and it will be very interesting to see what the new partner will be ready to pay (bonus?) to access exclusive rights for Progenza in Japan, as stated in release "anticipated clinical licensing opportunities for Progenza"
With the granted patents in USA and Europe, RGS is in a very strong position when negotiating commercial terms for Progenza distribution.
Announcement
24 October 2018
ASX Ltd20 Bridge StreetSydneyNSW 2000Regeneus Ltd (ASX: RGS) –
Quarterly results for the period ended 30 September 2018The Company’s Appendix 4C – Quarterly Cash Flows Statement is attached.
The financial highlights for the quarterly reporting period include:
• Cash as at 30 September 2018 of $2.7 million (30 June $1.1 million)
• Net operating cash outflow (ex R&D Tax Incentive) of $1.5 million, consistent with prior quarters
• R&D Tax Incentive received of $2.4 million (2017 $2.6 million)
• Repayment of R&D loan facility with Paddington St Finance Pty Ltd renegotiated to the earlier of receipt of the next milestone payment under the manufacturing licence with AGC Inc.; the receipt of the FY19 R&D Tax Incentive; and 30 September 2019.
The Company’s cash position of $2.7 million as at 30 September is expected to provide adequate funding until the next milestone payment is received under the Company’s Progenza licence agreement with AGCInc. of Japan.
The sources of funding for the Company over the next 18 months include: milestone payments and anticipated clinical licensing opportunities for Progenza; shareholder loan repayments relating to the funding of employee options exercised as part of the IPO in 2013; ongoing R&D Tax Incentives including forward funding arrangements where necessary and options exercised.
These sources of cash are expected to provide sufficient funding to support the Company’s R&D, clinical trials and operating activities for FY’19and into FY’20.Further licensing opportunities may provide additional funding for incremental activities.
About Regeneus Limited
Regeneus Ltd (ASX:RGS) is a Sydney-based clinical-stage regenerative medicine company using stem cell and immuno-oncology technologies to develop a portfolio of novel cell-based therapies to address significant unmet medical needs in the human and animal health markets with a focus on osteoarthritis and other musculoskeletal disorders, oncology and dermatology.
