FAST NEWS: Kintor Pharma Strapped for Cash as Loss Widens
The latest: Kintor Pharmaceutical Ltd. (9939.HK) announced on Wednesday it did not record any revenue in the first half of the year, as its net loss widened to 518 million yuan ($75 million) from 326 million yuan in the same period last year.
Looking up: The company said it does not anticipate any significant deviations from its drug development and commercialization plans, even though the global pandemic has had an impact on its ongoing clinical trials. It said development plans for its Covid oral drug Pruxelutamide have taken into account the impact of the outbreak.
Take Note: The company’s R&D costs increased 63.5% to 461 million yuan in the first half of the year and it recorded a net cash outflow of nearly 600 million yuan. That left only 337 million yuan in the company’s coffers at the end of June, meaning it may require new fundraising in the near future.
Digging Deeper: After listing on the Hong Kong Stock Exchange in May 2020, Kintor Pharmaceutical said in December that year it had made progress on developing Proxalutamide for the treatment of Covid-19. In April this year, it announced positive results from a Phase 3 clinical trial for the drug to treat mild-to-moderate ambulatory Covid-19 patients, saying top-line data showed the drug was effective in reducing hospitalization and mortality rates, particularly in middle-aged and elderly people with high risk factors, spurring a 230% jump in the stock price. With Phase 3 clinical trials now complete, the company is seeking partners to help it commercialize the drug internationally and is expected to submit a new drug marketing application shortly to China’s drug regulator.
Market Reaction: Kintor’s shares fell on Tuesday to close down 7% at HK$17.40 at the midday break. The stock now trades at the lower end of its 52-week range.
Translation by Jony Ho
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