ChitogenX Inc (CSE:CHGX, OTCQB:CHNXF) has posted financial results for its fiscal third quarter which showed that it is pursuing sales of medical-grade chitosan as a new near-term commercial revenue initiative.
During the 3Q of its fiscal year ended October 31, 2022, the Montreal-based clinical-stage regenerative medicine company announced its decision to pursue sales of chitosan after completing an internal commercial and regulatory readiness process.
It also signed a partnership with the California Medical Innovations Institute to identify collaborative projects and pursue proof-of-concept research programs utilizing ChitogenX's regenerative medicine solutions to improve patient outcomes.
In September 2022, the firm changed its corporate name from Ortho Regenerative Technologies Inc to ChitogenX Inc to reflect its “expanded clinical and commercial opportunities,” and core competencies.
"From the pursuit of medical grade chitosan sales as a non-dilutive revenue source to the signing of collaborative development agreements with world-renowned medical innovation institutes, ChitogenX is advancing initiatives that will help realize the full value of our proprietary technology," ChitogenX CEO Philippe Deschamps said in a statement.
"Given the versatile properties and functionality of our Chitosan-PRP hybrid biologic implant, we are confident that even more opportunities will be brought forward to help address many other significant unmet medical needs," he added.
In October 2022, the company launched its ORTHO-R program, its second orthopedic development program in meniscus repair following the development of its preclinical arthroscopic surgery program.
Restructuring balance sheet
Meanwhile, ChitogenX CFO Luc Mainville noted that "restructuring our balance sheet" and decreasing short-term liabilities was "a priority for the company.”
“The accelerated conversion of existing debentures testifies to our investors' confidence in our strategy. With this portion of the plan completed, we now look forward to delivering more phase I/II clinical trial and corporate milestones,” added Mainville.
In December this year, ChitogenX reached an agreement with holders of existing convertible and non-convertible debentures. The firm said an agreement is “in place for the accelerated conversion of $2.6 million worth of convertible debentures” as well as the extension of the $3 million non-convertible debenture maturity from November 2023 to February 2025.
During the same month, the company also secured $1.2 million to fund operations and support initiatives related to the Phase I/II clinical trial for rotator cuff tear repair.
In November 2022, ChitogenX successfully completed the initial portion of its US Phase I/II ORTHO-R rotator cuff tear repair clinical trial requiring staggered enrolment of 5 patients and Data Safety Monitoring Committee review and sequential clearance for each trial participant.
In November this year, the firm successfully completed the large animal surgeries for its pre-clinical meniscus repair program mainly funded by the previously announced Axelys grant of $750,000.
ChitogenX is working on the clinical development of its RESTORE technology platform, a mucoadhesive chitosan-based biopolymer matrix, designed to deliver biologics such as platelet-rich plasma or bone marrow aspirate concentrate (BMAC), to help to heal in musculoskeletal conditions. ORTHO-R, the firm’s lead chitosan- platelet-rich plasma (PRP) hybrid biologic implant combo product, is aimed at increasing the healing rates of sports-related injuries to tendons, ligaments, and cartilage such as the meniscus.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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