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Imagion Biosystems (ASX:IBX) flags big R&D spending over 2022

ASX News, Health Care
ASX:IBX      MCAP $3.825M
28 February 2023 18:39 (AEDT)
Imagion Biosystems (ASX:IBX) - CEO & Executive Chairman, Bob Proulx

Source: HotCopper

Imagion Biosystems (IBX) has deepened its annual loss by 62.8 per cent for the year ending December 31, 2022.

The company reported a net loss of $9.2 million and an operating loss of $9.8 million — around $3.8 million more than its operating loss in 2021.

However, IBX said the loss was “materially in line with expectations” as it expanded its research and development (R&D) activities over the year.

While costs relating to the company’s MagSense HER2 Breast Cancer Phase I Study reduced year-on-year, there were increases in other research and development initiatives including animal studies and in-house R&D supporting other indications such as prostate and ovarian cancers and brain tumour imaging.

Employment expenses also increased by $1.6 million to support its next phase of development.

Despite the increased spending, IBX Executive Chairman Robert Proulx told investors it was “gratifying” to end the year with “demonstrable” evidence that the company’s clinical trial objectives were being met.

Mr Proulx said the HER2 breast cancer study had been a “remarkable achievement” for the company and was instrumental in providing the confidence to move forward.

Revenue for the year was up 7.5 per cent, or $215,359, compared to 2021, to just over $3 million.

IBX said the earnings mainly came from sales of manufactured nanoparticles, but the company also received an R&D tax incentive of $2.5 million.

The company ended the year with $4.4 million in cash and cash equivalents, down from $13.3 million at the end of 2021.

IBX shares ended the trading day down by 4.1 per cent at 2.3 cents.

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