Transcription of The Stock Network Interview with Tetratherix (ASX:TTX), Chief Financial Officer, Cherie Beach
Lel Smits: Tetratherix’s latest quarterly results have been marked by progress across commercial agreements, clinical programs and manufacturing scale up alongside a disciplined financial position. The quarter highlighted the company’s transition towards revenue generation, underpinned by a landmark agreement with superpower and continued advancement across its core product portfolio. I’m joined today by the company’s Chief Financial Officer Cherie Beach, who is responsible for overseeing Tetratherix’s financial strategy, and ensuring the business is well positioned to execute on its next phase of growth.
Cherie will discuss the key takeaways from the latest quarterly results and priorities heading into the next phase of development and commercialisation. Cherie, welcome to The Stock Network.
Cherie Beach: Thank you, it’s great to be here.
Lel Smits: Now, the latest quarter included major milestones across revenue, clinical progress and commercial readiness. From your perspective, what do you think really were the most important outcomes for the quarter?
Cherie Beach: It was a very impactful quarter. Look, I think the first thing would be the launch of our new franchise in precision medicine.
So this relates to drug delivery applications. So of particular note, we published that we’ve signed an exclusive agreement with superpower, who delivers drug delivery through nasal delivery. So compounds such as GLP-1s, peptides and hormones.
So that was a super exciting milestone for us. We’ve launched a product called STEP, which, frankly, has been in stealth development for over five years with some major research partners. But STEP is now going to be supplied to superpower.
And under that agreement, we will receive a US$3 million licensing fee for up to 10 years. So that was a very exciting milestone for the quarter. The other thing I would say is from a tetraderm, our scar prevention perspective, we had first 12 months results from cohort one, and really pleasing results in terms of scar reduction went to around, I think it was 13% in three months down to 8% after 12 months from a scar prevention perspective.
So that was really pleasing. And then finally, from a Tutelix perspective in our tissue spacing franchise, we continue to progress with our clinicals and seeing really good results there. The joint venture also raised around $5 million in funding as well, which will help to accelerate some of the pivotal trials both in Australia and the US.
Lel Smits: Fantastic. Now, you’ve mentioned a number of key milestones there, including that superpower agreement, also the progression of Tutelix into pivotal trials and also the continued advancement of Tetraderm and Tgenix. In terms of what’s coming up, what are the key milestones that investors should be watching over the coming six to 12 months?
Cherie Beach: Yeah, absolutely. And I think, you know, you mentioned Tgenix. So let’s start there. That is in our bone regeneration franchise, so a dental product. And we are focused in the coming months on FTA 510K clearance for Tgenix. So that’s going to be a big milestone. We announced that we signed an exclusive global distribution agreement with Henry Schein. And so we will be focusing on commercial readiness for Tgenix. The other one in bone regeneration is our orthopedics product Tgenios. There’s lots of T’s in our portfolio. And Tgenios is, we are looking at securing a strategic partner. Due diligence does continue with two key players globally in that space. So that will definitely be an area of focus.
Tetraderm cohort three, this is our third and final cohort. So clinical studies will progress with tetraderm. And also excitingly, internally, we will be moving to our advanced manufacturing facility. So we have been investing quite a bit of capex in our advanced manufacturing to really facilitate and fuel growth as we become a commercial organisation.
Lel Smits: Fantastic. And in terms really of balancing that investment with execution, you’ve got a very strong cash position, also that continued investment into R&D and manufacturing. What’s Tetra Therx really prioritising now to ensure that looking ahead, you’re executing on those upcoming milestones while also really maintaining that financial discipline?
Cherie Beach: Yeah, look, I think for me, I will shout out the financial position is strong at the end of the quarter, you know, we’ve got $19 million cash on hand with zero financing debt. We have received around $2 million for the quarter in cash receipts from R&D tax incentive and our industry growth fund grant. And as you say, we’re definitely investing in R&D and advanced manufacturing as part of our outflows for the quarter.
What all that means, however, is that we are in line with our use of funds. We’re very disciplined about how we spend money and our capital light models. So through our strategic partnerships, we use sales and marketing teams, which makes our OPEX, XR&D and CAPEX for our one-off for manufacturing quite light.
So that is something we’re very proud of and very focused on maintaining to allow us to invest in the future to drive growth. Look, you know, there’s a lot of exciting things coming with super power, tetraderm, you know, there’s a lot of products in the pipeline and being able to really focus on that investment in R&D as well as for that commercial readiness is something that the leadership team is very committed to.
Lel Smits: Well, I really appreciate the update from you and to hear the latest from that very strong quarter and what lies ahead.
Cherie Beach: Thank you so much. Thanks for your time.
Ends