AVECHO BIOTECHNOLOGY LIMITED For personal use only
ASX Announcement
29 July 2022
Avecho Quarterly Activities Report and Appendix 4C
Key Highlights
- Essential preparation underway for the commencement of Phase III CBD soft-gelprogram;
- High profile exposure for Phase II data trialling the effectiveness of cannabinoids for treating arthritis of the hand, in top tier media and as part of the International Cannabis Research Society Conference in Galway;
- Promising business development and partnership discussions ongoing for cannabinoid and broader portfolio of human health products;
-
Receipt of $1,007,990.22 under the Australian Government's Research and Development Tax
Incentive Scheme; - Cash balance of $3.13m on 30 June 2022.
Melbourne, Australia, 29 July 2022 - Avecho Biotechnology Limited (ASX: AVE) ("Avecho" or the "Company"), focused on developing and commercialising innovative products using its proprietary TPM® drug delivery system, has today released its Quarterly Activities Report and Appendix 4C for the quarter ended 30 June 2022.
CBD soft-gel capsule: Phase III Trial preparation
Essential preparation is ongoing to support the commencement of Avecho's CBD Phase III Trial ("the trial") for its soft-gel product, which is principally focused on registration of an over-the-counter product for an insomnia-related indication.
The Company has begun engaging external service providers that will be responsible for the conduct of the trial. Remaining service providers will be finalised shortly, which will allow the protocol to be completed and submitted to ethics for approval in Q3 2022. The expertise of the service providers will be fundamental to the successful completion of the trial.
The CBD capsule passed further milestones during the quarter, with the first batches of material manufactured at Catalent proving to be stable after 12 months of storage at room temperature. The Company has engaged further contract manufacturers overseas to ensure the product can be tailored for a range of markets. Production is currently being scaled up in preparation for its use in the Phase III Trial as well as formal batches for the product registration process.
Topical CBD gel for Osteoarthritis: In the spotlight
Earlier this calendar year, Avecho announced positive results from a Phase II Trial testing a proprietary topical CBD gel for the management of painful symptoms associated with osteoarthritis ("OA") of the hand. This study was undertaken in partnership with the Lambert Initiative and has attracted significant market interest.
The positive trial results attracted top tier media coverage in The Herald Sun (print, online) and on Channel 7 News (television), which included an interview with one of the trial participants who shared how the treatment had positively impacted her experience of activities of daily living, by easing arthritis of the hand.
Avecho Biotechnology Limited | ASX: AVE | ACN: 056 482 403 | ABN: 32 056 482 403 | avecho.com.au |
Unit 8A, 2A Westall Road, Hallmarc Business Park, Clayton VIC Australia 3168 |
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The trial results were also presented by the Lambert Initiative at the 32nd Annual International Cannabinoid Research Society Symposium ("ICRS") in Galway, Ireland, in June 2022. The ICRS conference is the premier annual meeting for cannabinoid research. The results of our study were supported by emerging research presented at the conference and consequently met with great enthusiasm.
Avecho, in partnership with Lambert Initiative, is continuing to plan larger, placebo-controlled trials examining varied uses for topical cannabinoid gels - a promising opportunity for commercial growth.
Business development and partnerships
Avecho is continuing its engagement with potential partners and licensees across its portfolio of CBD and broader human health products. Discussions continue with potential licensees for a range of opportunities in the cannabinoid space.
The Company completed the first manufacturing campaign in the US for the CBD capsules to be used in Perland's clinical program, which will commence later in the 2022 CY year.
Avecho has been working with Team SAAS to finalise the composition of their cannabis distillate for sale into the US edibles market.
AB Vista concluded their studies examining the combination of TPM with other ingredients in feed additives used to manage diarrhea in pigs. Results demonstrated that a product combining TPM® with other feed additives was able to produce a reduction in swine diarrhoea. However, the improvement was not greater than that observed for an internal product under development at AB Vista. Consequently, AB Vista have elected to proceed with their own internal product, and will not be examining the TPM further.
Corporate: Significant Research & Development tax incentive return
During the Quarter ended 30 June 2022, the Company received a significant sum of $1,007,990 from its R&D tax return related to FY 2021, thus Avecho had net operating inflow of $709K, including $283K invested in R&D activities. Adminstration and corporate costs were $69K during the quarter.
Avecho continues to manufacture and sell Vital ET® to Ashland for use in the global personal care industry, receiving $667K from sales made during the current and previous quarter.
At the end of the quarter, the Company held $3.13m in cash.
Payments to related parties and their associates during the quarter, as outlined in Section 6 of the accompanying Appendix 4C to this quarterly activities report, were $52K.
For enquiries, please contact
Dr Paul Gavin
Avecho Biotechnology Limited +61 3 9002 5000
This announcement has been authorised by the Board of Directors of Avecho Biotechnology Limited.
Avecho Biotechnology Limited | ASX: AVE | ACN: 056 482 403 | ABN: 32 056 482 403 | avecho.com.au |
Unit 8A, 2A Westall Road, Hallmarc Business Park, Clayton VIC Australia 3168 |
For personal use only
About Avecho
Avecho Biotechnology Limited (ASX: AVE) develops and commercialises innovative Human and Animal Health products using its proprietary drug delivery system called TPM® (Tocopherol Phosphate Mixture). TPM® is derived from Vitamin E using unique, proprietary and patented processes and is proven to enhance the solubility and oral, dermal and transdermal absorption of drugs and nutrients.
Avecho's major projects include delivering TPM® enhanced injectable, oral and topical products for the human health market, including the recently announced application of TPM® to cannabinoids. The Company is also developing TPM® to enhance feed efficiency and health of livestock.
See more here - avecho.com.au
Forward-Looking Statements
Certain statements in this announcement are forward looking statements. Forward looking statements can generally be identified by the use of words such as "anticipate", "estimate", "expect", "project", "intend", "plan", "believe", "target", "may", "assume" and words of similar import. These forward-looking statements speak only as at the date of this announcement. These statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performance or achievements expressed or implied by such forward looking statements.
No representation, warranty or assurance (express or implied) is given or made by AVE that the forward- looking statements contained in this announcement are accurate, complete, reliable or adequate or that they will be achieved or prove to be correct. Except for any statutory liability which cannot be excluded, AVE and its respective officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the forward looking statements and exclude all liability whatsoever (including negligence) for any direct or indirect loss or damage which may be suffered by any person as a consequence of any information in this announcement or any error or omission therefrom.
Subject to any continuing obligation under applicable law or relevant listing rules of the ASX, AVE disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements in these materials to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which any statement is based. Nothing in these materials shall under any circumstances create an implication that there has been no change in the affairs of AVE since the date of the announcement.
Avecho Biotechnology Limited | ASX: AVE | ACN: 056 482 403 | ABN: 32 056 482 403 | avecho.com.au |
Unit 8A, 2A Westall Road, Hallmarc Business Park, Clayton VIC Australia 3168 |
For personal use only
Rule 4.7B
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Name of entity
AVECHO BIOTECHNOLOGY LIMITED | |
ABN | Quarter ended ("current quarter") |
32 056 482 403 | 30 JUNE 2022 |
Consolidated statement of cash flows | Current quarter | Year to date (6 | ||
$A'000 | months) | |||
$A'000 | ||||
1. | Cash flows from operating activities | |||
1.1 | Receipts from customers | 404 | 764 | |
1.2 | Payments for | |||
(a) | research and development | (283) | (569) | |
(b) | product manufacturing and operating | (159) | (488) | |
costs | ||||
(c) | advertising and marketing | - | - | |
(d) | leased assets | - | - | |
(e) | staff costs* | (141) | (412) | |
(f) | administration and corporate costs | (69) | (247) | |
(g) | patent portfolio costs | (50) | (123) | |
1.3 | Dividends received (see note 3) | - | - | |
1.4 | Interest received | - | - | |
1.5 | Interest and other costs of finance paid | (1) | (1) | |
1.6 | Income taxes paid | - | - | |
1.7 | Government grants and tax incentives | 1,008 | 1,008 | |
1.8 | Other (EMDG) | - | 20 | |
1.9 | Net cash from / (used in) operating | 709 | (48) | |
activities |
*Some staff costs are reallocated in payments for research and development
2. Cash flows from investing activities
2.1 Payments to acquire or for:
(h) | entities | - | - |
(i) | businesses | - | - |
(j) | property, plant and equipment | - | (48) |
(k) | investments | - | - |
(l) | intellectual property | - | - |
ASX Listing Rules Appendix 4C (17/07/20) | Page 1 |
+ See chapter 19 of the ASX Listing Rules for defined terms. |
For personal use only
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Consolidated statement of cash flows | Current quarter | Year to date (6 | ||
$A'000 | months) | |||
$A'000 | ||||
(m) | other non-current assets | - | - | |
2.2 | Proceeds from disposal of: | |||
(a) | entities | - | - | |
(b) | businesses | - | - | |
(c) | property, plant and equipment | - | - | |
(d) | investments | - | - | |
(e) | intellectual property | - | - | |
(f) | other non-current assets | - | - | |
2.3 | Cash flows from loans to other entities | - | - | |
2.4 | Dividends received (see note 3) | - | - | |
2.5 | Other (provide details if material) | - | - | |
2.6 | Net cash from / (used in) investing | - | (48) | |
activities |
3. Cash flows from financing activities
3.1 Proceeds from issues of equity securities
(excluding convertible debt securities) | - | - | |
3.2 | Proceeds from issue of convertible debt | - | - |
securities | |||
3.3 | Proceeds from exercise of options | - | - |
3.4 | Transaction costs related to issues of | - | - |
equity securities or convertible debt | |||
securities | |||
3.5 | Proceeds from borrowings | - | - |
3.6 | Repayment of borrowings | - | - |
3.7 | Transaction costs related to loans and | - | - |
borrowings | |||
3.8 | Dividends paid | - | - |
3.9 | Other - Payment of principal element of | (20) | (40) |
lease liabilities | |||
3.10 | Net cash from / (used in) financing | (20) | (40) |
activities |
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period | 2,440 | 3,265 | |
4.2 | Net cash from / (used in) operating | 709 | (48) |
activities (item 1.9 above) |
ASX Listing Rules Appendix 4C (17/07/20) | Page 2 |
+ See chapter 19 of the ASX Listing Rules for defined terms. |
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Avecho Biotechnology Ltd. published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 22:43:03 UTC.
