Quarterly Cash Flow Report
- Dr David Stamler appointed CEO; Geoffrey Kempler continues as Non-Executive Chairman
- New commercial opportunity for PBT2 with UniQuest to reverse bacterial resistance to antibiotics
- US patent for next generation of compounds to treat neurodegenerative disease
- Phase 2 clinical program underway with commencement of enrollment in BioMUSE natural history study in US for patients with MSA
- $35M Placement to Australian and international institutions and other unrelated sophisticated, professional, or exempt investors
- Cash balance as at 31 December 2020 of A$35M
Alterity Therapeutics Limited (ASX: ATH, NASDAQ: ATHE) (“Alterity” or “the Company”) releases its Appendix 4C Quarterly Cash Flow Report and update on company activities for the quarter ending 31 December 2020 (Q2 FY21).
The company’s cash position was significantly bolstered with A$35M raised through an oversubscribed placement to Australian and international institutions and other unrelated sophisticated, professional, or exempt investors. Operational cash outflow for the period was A$4.5M which was in line with company expectations and reflected the commencement of the BioMUSE Natural History study.
The proceeds from the placement will be used to progress Alterity’s Phase 2 clinical development program for ATH434, including the BioMUSE Natural History study and a Phase 2 trial, both in Multiple System Atrophy (MSA) patients, ongoing research and discovery, and working capital.
Post the reporting period, Alterity announced the appointment of Dr David Stamler to the role of Chief Executive Officer. Dr Stamler is based in San Francisco and joined the Company in June 2017 as Chief Medical Officer and Senior Vice President Clinical Development. Mr. Geoffrey Kempler, who founded the company in November 1997, has stepped down from the role of CEO and continues as Non-Executive Chairman.
In accordance with ASX Listing Rule 4.7C, payments made to related parties and their associates included at item 6.1 of the Appendix 4C incorporates directors’ fees, consulting fees, remuneration and superannuation at commercial rates.
During the quarter, Alterity made significant operational progress.
In December, Alterity was granted a licence by UniQuest, the commercialisation company of The University of Queensland (UQ), to novel zinc ionophore technology to combat antimicrobial resistance in superbugs.
Under the licence, Alterity has secured the worldwide exclusive right to patented technology to develop and commercialise therapies that re-sensitise bacteria to antibiotics. The licensed
technology combines Alterity’s PBT2 and other zinc ionophores with commonly used antibiotics to treat infections caused by multidrug resistant bacteria. This is an opportunity for Alterity to further leverage its investment in PBT2.
The company announced the allowance of a new composition of matter patent by the United States Patent and Trademark Office (USPTO). The new patent is the product of in-house discovery research and is central to Alterity’s next generation drug development portfolio focussed on neurodegenerative diseases. The patent, entitled “Compounds for and Methods of Treating Diseases” covers more than 150 novel pharmaceutical compositions that are designed to redistribute the labile iron implicated in Parkinson’s disease, Alzheimer’s disease, and other neurodegenerative conditions. The patent underwent prioritized examination by the USPTO.
An important step in the Phase 2 clinical program for Alterity’s lead compound ATH434 is the commencement of the BioMUSE study in MSA patients, which began enrollment during the quarter.
BioMUSE is a natural history study that aims to track the progression of patients with MSA. The study is being conducted in collaboration with Vanderbilt University Medical Center in the US under the direction of Daniel Claassen, MD, Associate Professor of Neurology and Principal Investigator. Natural history studies are important for characterizing disease progression in selected patient populations. The study will provide vital information on early stage MSA patients to optimize the design of Alterity’s Phase 2 study in MSA. The study will also inform the selection of biomarkers suitable to evaluate target engagement and preliminary efficacy.
Commenting on the quarter Alterity CEO Dr David Stamler said: “We’ve made important progress throughout the quarter with our commercialisation program for ATH434, including the initiation of our MSA natural history study and growing scientific validation of our library of compounds. I look forward to evaluating new opportunities for PBT2 in the important area of antibiotic resistance. We are well capitalized to continue to advance the company in the coming year.”
Authorisation & Additional information
This announcement was authorised by Geoffrey Kempler, Chairman of Alterity Therapeutics Limited.
Greig King, WE Communications
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