SINGAPORE (May 9): iX Biopharma announced 3Q19 earnings of $7.8 million, compared to a loss of $3.9 million in 3Q18, due to a one-off gain from the disposal of a subsidiary.
During the quarter, the group disposed its entire laboratory testing business held under Chemical Analysis for A$12.5 million, which translated to a net gain on disposal of $10.6 million.
Revenue increased 254% to $333,000 from $94,000 a year ago, with the group’s specialty pharmaceutical recording a 711% y-o-y surge in revenue, but this was partially offset by a 42% y-o-y decline in the group’s neutraceuticals segment.
Included in the revenue of the specialty pharmaceutical business is the project income of $281,000 attributed to the development of a medicinal cannabis product incorporating cannabis extracts provided by Australian-listed Bod Australia.
However, cost of sales saw a higher increase of 273% to $502,000 from $135,000 last year, in line with the group’s plan to gear up its manufacturing resources in preparation for the supply of its nutraceutical products for national launch.
Hence, gross loss for the quarter was 312% higher to $169,000 from $41,000.
Other income increased by 26% y-o-y to $251,000.
Total expenses declined by 31% y-o-y to $2.9 million, mainly due to less expenses incurred for research & development and other expenses.
As at end-March, the group’s cash and cash equivalents stood at $17.7 million.
The group has identified Australia as the market territory to launch and establish the Entity brand, after it received enthusiastic feedback during from its soft launch there.
Over the next 12 months, the group plans to undertake sales and marketing initiatives in Australia to promote the Entity products and continue to grow the number of independent stockists. This will allow the brand to build a sales track record and to attract and garner greater interest among the larger banner groups operating nationally.
In the next quarter, the group will continue to target some of the larger independent pharmacy groups which typically have 30 to 90 stores each.
Shares in iX Biopharma closed at 21 cents on Thursday.
