Invex’s Narrowed Losses Highlight Challenges Ahead in Neurological Drug Development
Invex Therapeutics reports a significant reduction in net loss for H1 FY2025 alongside promising pre-clinical data for Exenatide in Alzheimer’s Disease models.
- Net loss narrowed to $356,535 from $2.1 million year-on-year
- Entered research collaboration with Tessara Therapeutics on Alzheimer’s Disease
- Exenatide showed protective effects in 3D human brain tissue models
- Cash reserves remain strong at $5.8 million
- No dividends declared; focus remains on drug development and corporate growth
Financial Performance Highlights
Invex Therapeutics Ltd (ASX: IXC) has reported a markedly improved financial position for the half year ended 31 December 2024, posting a net loss of $356,535 compared to a loss of $2.1 million in the prior corresponding period. This substantial reduction in losses reflects tighter cost control and a more focused operational approach amid ongoing drug development activities.
The company’s cash balance remains robust at $5.8 million, providing a solid runway to advance its clinical programs and corporate initiatives. No dividends were declared or paid during the period, with the board prioritizing reinvestment into research and development.
Progress in Neurological Drug Development
Invex’s core focus continues to be the repurposing of Exenatide, a GLP-1 receptor agonist, for neurological conditions linked to raised intracranial pressure, including Alzheimer’s Disease (AD). A key development during the half was the establishment of a research collaboration with Tessara Therapeutics Pty Ltd, an Australian biotech specializing in scalable 3D human brain tissue models.
Under this partnership, Tessara applied its proprietary ADBrain™ platform to evaluate Exenatide’s therapeutic efficacy and safety in a model that mimics the neurodegenerative processes of AD. The initial results, announced in December 2024, revealed that Exenatide significantly improved cell viability and protected neural tissue integrity under oxidative stress conditions. Notably, this is the first demonstration of a GLP-1 receptor agonist showing benefit in a 3D human brain model of Alzheimer’s Disease.
Scientific and Strategic Implications
The findings suggest that Exenatide may have broader neuroprotective properties beyond its established use in diabetes, potentially slowing or mitigating neurodegeneration in AD. This aligns with emerging epidemiological data from the US indicating reduced AD incidence in diabetic patients treated with Exenatide.
Invex plans to deepen its collaboration with Tessara to further elucidate Exenatide’s mechanism of action and explore its applicability to other neurodegenerative disorders, including traumatic brain injury. These efforts could open new avenues for clinical development and enhance shareholder value through potential licensing or partnership opportunities.
Corporate and Governance Notes
The company’s governance remains stable with Dr Thomas Duthy as Executive Director and Messrs David McAuliffe and David Wheeler as Non-Executive Directors. Invex’s subsidiary in the UK received a research and development tax rebate of approximately A$220,000 in January 2025, providing additional financial support for ongoing projects.
Share-based payments continue to be a component of employee and director remuneration, although no new incentive plans were approved at the recent AGM, reflecting a cautious approach to equity dilution.
Bottom Line?
Invex’s improved financial footing and promising Alzheimer’s research position it well for the next phase of clinical validation and potential partnerships.
Questions in the middle?
- How will further data from the Tessara collaboration influence Invex’s clinical trial strategy?
- What are the timelines and milestones for advancing Exenatide into human neurological trials?
- Could Invex pursue additional partnerships or licensing deals to leverage its neurological drug pipeline?
