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- It’s been a busy quarter for Biotron (BIT), which launched into FY21 while developing compounds to combat HIV-1, Hepatitis B, and COVID-19
- From June through September, the junior healthcare stock discovered compounds which act against the disease behind the coronavirus
- Simultaneously, Biotron progressed with testing for its HIV-1 and Hepatitis B programs
- However, increased research and development deepened Biotron’s quarterly cash burn, leading it past the $1 million mark
- That meant further drawdowns on BIT’s cash reserves, leaving it with just under 4.5 quarters of funding as it heads into FY21’s second quarter
- Following today’s periodical, Biotron shares dipped 1.16 per cent to hit 8.5 cents
It’s been a busy quarter for Biotron (BIT), which launched into FY21 while developing compounds to combat HIV-1, Hepatitis B, and COVID-19.
Over the quarter, the junior healthcare stock focussed on advancing its current portfolio in the hopes of uncovering treatments for some of the world’s toughest viruses.
The Activities
Biotron’s biggest quarterly achievement was discovering compounds within its small molecule drug library which demonstrated activity against the agent that causes COVID-19.
During the September quarter, BIT also expanded its screening program in a bid to uncover other compounds which could work against the disease behind the global pandemic.
Simultaneously, Biotron continued to develop new compounds for its HIV-1 program. The testing form’s part of the company’s broader vision to identify “a next-generation lead anti-HIV-1 drug” — something which could transform the global healthcare space. As part of its progress, Biotron published a peer-reviewed scientific paper on its premier anti-HIV-1 drug candidate.
In the meantime, the healthcare stock is working on compounds for use in the company’s Hepatitis B scheme.
The Financials
As it continued its research and development, Biotron deepened its quarterly cash burn.
From June through September, BIT went cashflow negative by over $1.4 million — up from last quarter’s $884,000 operating cash outflow.
The majority of the cash burn was racked up in research and development costs, which set the company back more than $1 million.
Biotron’s operating cash flow was by far the biggest expense on its balance sheet: the business only burnt through a combined $6000 on investing and financing activities over the September quarter.
As BIT’s drug candidates are still in development, the company tabled marginal cash inflows. In fact, the business received just $2000 in interest payments to offset the $1.4 million in outflows.
As a result, the company’s cash balance was drawn down over the first quarter of FY20, dropping from $7.6 million to $6.2 million.
Based on this quarter’s outflows and its existing reserves, the company has enough capital to last for just under four and a half more quarters.
Following today’s periodical, Biotron shares dipped 1.16 per cent to hit 8.5 cents at 3:05 pm AEDT.
