- Biotech company Dimerix (DXB) seems confident in future business operations despite having less than two quarters’ worth of cash in the bank
- The company is set to finish its two Phase II clinical trials in mid-2020, from which point it says spending will somewhat decrease
- Still, with just less than $2.5 million cash on hand at the end of March, the company says at current spending levels it has 1.8 quarters of cash left
- Dimerix noted, however, today’s quarterly report does not take in to account the $1 million funding agreement with Radium Capital from early April
- Investors have backed the company today, with Dimerix shares up 6.67 per cent this afternoon and worth 16 cents each
Biotech company Dimerix (DXB) has less than two quarters’ worth of cash in the bank as it gears up for the final quarter of the 2020 financial year.
The company said in light of the COVID-19 pandemic, cost management is a key priority for the business.
Nevertheless, Dimerix confirmed in its latest quarterly report this morning it plans to dose its final patients in its ongoing Phase II studies in June and July.
The two Dimerix studies underway are designed to test its DMX-200 drug in treating Focal Segmental Glomerulosclerosis (FSGS) and Diabetic Kidney Disease.
FSGS is characterised by scarring on the kidney, and can also be the result of an autoimmune disease like diabetes.
However, while Dimerix is confident in its ability to carry out the studies and operate thereafter, the company’s $2.47 million cash on hand suggests just 1.8 quarters left in the bank.
To still investor concerns, Dimerix reaffirmed that this is only the case at current spending levels; future cash flows are expected to be lower once the studies are finished in mid-2020.
Further, today’s quarterly report does not take into account the $1.02 million research and development (R&D) funding from Radium Capital announced in early April.
Still, Dimerix burned roughly $1.4 million in cash over the March quarter, meaning the Radium top-up does not guarantee a strong cash balance for the next financial year.
Regardless, Dimerix said it has a “significant cash runway” well past the Phase II clinical studies. The company made no mention of a potential need to raise capital, suggesting it is confident it has the cash to continue operating without resorting to dilution.
Investors seem to be backing the company up today, with shares gaining 6.67 per to trade for 16 cents at market close.