Noxopharm Ltd (ASX:NOX) has strengthened its cash balance with a A$5.865 million Federal Government research and development (R&D) rebate.
The clinical-stage drug development company’s latest rebate covers R&D expenditure made over the previous financial year.
Ultimately, the cash injection adds to the company’s robust cash position, which stood at A$23.6 million as of September 30, 2021.
According to its September quarterly report, Noxopharm intends to use the capital to bolster its expanding clinical program as it heads into the new year.
Earlier this week, Noxopharm appointed chief medical officer Dr Gisela Mautner as its new chief executive.
Dr Mautner will take over from existing CEO Dr Graham Kelly next month and lead the drug development company through the next chapter of its clinical development program.
Entering year of “high growth”
Speaking on the R&D rebate, outgoing Noxopharm CEO Dr Graham Kelly said: “The refunded cash is in line with our forecast and forms an important part of our forward budgeting activities, for which we thank the government.
“The coming year holds a very significant level of activity and opportunity for the company with our wide-ranging programs across cancer, septic shock, autoimmune disease and RNA drug/vaccine technology.
“It means we now go into a year of high growth in a healthy cash position.”
About Noxopharm
Noxopharm is an Australian clinical-stage drug development company focused on the treatment of cancer and cytokine release syndrome (also known as septic shock).
Veyonda® is the company’s first pipeline drug candidate, and it’s currently in phase two clinical trialling.
Ultimately, Veyonda® has two main drug actions – a moderating effect on the body's ceramide/sphingosine-1-phosphate balance and inhibition of STING/TBK1 signalling.
Activity against the former target contributes to Veyonda®'s dual-acting oncotoxic and immunomodulatory functions, designed to enhance the effectiveness and safety of standard oncology treatments such as chemotherapies, radiation therapies and immune checkpoint inhibitors.
Meanwhile, Veyonda®'s activity against the latter target provides an anti-inflammatory effect, as well as contributing to an anti-cancer action, but also potentially blocking septic shock.
Noxopharm is also running comprehensive drug discovery programs in both oncology and inflammation.
The healthcare stock is the major shareholder of US biotechnology company Nyrada (ASX:NYR) Inc, which is working on drug development for cardiovascular and neurological diseases.