Join our daily newsletter At The Bell to receive exclusive market insights
- SUDA Pharmaceuticals (SUD) shares are down this morning after Mitsubishi Tanabe Pharma Singapore (MTPS) announced it would not proceed with its ZolpiMist agreement
- Last year, the company signed an exclusive licence agreement with MTPS for its insomnia spray
- However, MTPS has left the agreement as it changes its business strategy across the Association of Southeast Asian Nations (ASEAN) region
- Notably, SUDA says the termination of the agreement has no immediate impact on its revenue streams
- On the market this morning, SUDA is down 4.65 per cent and trading at 4.1 cents per share
SUDA Pharmaceuticals (SUD) shares are down this morning after Mitsubishi Tanabe Pharma Singapore (MTPS) announced it would not proceed with its ZolpiMist agreement.
In 2018, the company signed an exclusive licence agreement with MTPS, meaning its insomnia spray could be supplied in Singapore, Malaysia and the Philippines. The deal also carried the option to supply into additional territories like Thailand, Indonesia, Vietnam, Myanmar, Cambodia, Laos and Brunei.
However, MTPS has opted to back out of the deal as it changes its business strategy across the Association of Southeast Asian Nations (ASEAN) region.
Notably, SUDA says the termination of the agreement has no immediate impact on its revenue streams.
The company says it will now focus on the remaining partnerships it has in place for ZolpiMist and will look on securing new partners for the ASEAN region.
Quarterly results
During the second quarter of FY21, SUDA received a refund under the research and development tax incentive program of $662,000 from the Australian Taxation Office. SUDA also tabled $662,000 in net cash outflows for the quarter.
The company completed its $2.76 million capital raise and continued to identify and evaluate a number of technologies in the oncology and central nervous system fields.
At the end of the quarter, SUDA had $5.47 million in the bank.
“There are many exciting technologies being developed across the globe,” CEO Michael Baker.
“SUDA is continuing to work diligently to secure the technology that we feel best
aligns with our core areas of focus and that will deliver value to our shareholders,” he added.
On the market this morning, SUDA is down 4.65 per cent and trading at 4.1 cents per share at 11:15 am AEDT.
