Invex’s Alzheimer’s Breakthrough Raises Stakes Amid Tight Cash Management

Operational Breakthrough in Alzheimer's Research

Invex Therapeutics Ltd (ASX: IXC) has delivered a compelling update for the December quarter of FY25, spotlighting significant progress in its neurological drug development program. Central to this update is the promising data emerging from its research collaboration with Tessara Therapeutics, which explored the effects of Exenatide on Alzheimer's disease (AD) pathology using Tessara’s proprietary ADBrain™ 3D human neural micro-tissue model.

This model replicates the neurodegenerative processes driven by amyloid-beta 42 (Aß42), a hallmark of AD. Invex’s findings mark a milestone as the first demonstration of a GLP-1 receptor agonist, Exenatide, showing neuroprotective benefits in a three-dimensional human brain model of Alzheimer’s disease. Specifically, low doses of Exenatide increased neuronal cell viability by approximately 24% under oxidative stress conditions, while moderate doses enhanced viability by 45% under ferraptosis-like conditions, a distinct cell death pathway implicated in AD progression.

Strategic Implications and Market Potential

The data aligns with emerging clinical evidence suggesting GLP-1 receptor agonists may slow cognitive decline by protecting brain regions responsible for memory and decision-making. Given the global AD market is valued at an estimated US$17 billion in 2023, Invex’s repositioning of Exenatide, already approved for other indications, could represent a valuable therapeutic avenue if further clinical validation is achieved.

Invex plans to deepen its collaboration with Tessara to elucidate Exenatide’s mechanism of action in AD and explore its potential in other neurodegenerative conditions such as traumatic brain injury. This strategic research direction could broaden Invex’s neurological portfolio beyond its core focus on conditions related to raised intracranial pressure.

Corporate and Financial Discipline

On the corporate front, Invex has engaged in exploratory talks with potential partners possessing complementary neurological assets, aiming to enhance shareholder value through pipeline diversification. While no binding agreements have been announced, these discussions indicate a proactive approach to growth.

Financially, Invex demonstrated prudent cash management during the quarter, closing with $5.8 million in cash and equivalents, a marginal decrease from $5.9 million in the prior quarter. Operating cash outflows remained modest at $0.12 million, reflecting increased R&D spend associated with the Tessara collaboration and regulatory activities for its IIH EVOLVE Phase III trial. Administrative expenses were tightly controlled, underscoring management’s focus on operational efficiency amid ongoing development efforts.

Additionally, Invex’s UK subsidiary received a government R&D grant of approximately A$0.22 million post-quarter, providing a welcome boost to its funding base.

Looking Ahead

With encouraging preclinical data in hand and a stable financial footing, Invex is well-positioned to advance its neurological drug development ambitions. The company’s next steps will likely focus on expanding its research collaborations, advancing clinical programs, and potentially securing strategic partnerships to accelerate commercialization pathways.