The main issue the I read in the Quarterly, it is the sale of Pharmaxis mannitol business to Arna Pharma. Read the Investor presentation on Oct 2023, then was no mention of the sale price, only the savings.
Arna Pharma have paid ~2.5m There is also the following • Fixed payments: ~$3.3m • Inventory: ~$0.4m • Reimbursement of transition & other SNT costs: ~$1.4m
It looks like they quarterly would have been short by around ~5.1m, so the capital raise was to get the quarterly out.
On last years annual (30 June 2023) a report the Other revenue mention was;
On the balance sheet they had - Sale of Orbital technology to Aptar - 7,192m
Other revenue for the year ended 30 June 2023 was $7.3 million compared to $2.5 million in 2022. In August 2022 Aptar Pharma, after twelve months of technical and commercial evaluation, exercised its option to acquire the worldwide rights to Pharmaxis’ proprietary inhaler Orbital, a unique device designed to deliver high payload dry powder to the lungs. This unique platform was originally developed as a life cycle extending product for Bronchitol (mannitol). However, it also meets an increasing global need to deliver high doses of other drugs, such as antibiotics, to the lungs. Aptar Pharma paid Pharmaxis US$2.5 million to exercise the option to the Orbital technology and immediately exercised its subsequent right to outright acquire the technology by payment of a further US$2.5 million. Pharmaxis retains the rights to devices containing Orbital intellectual property used to deliver inhaled mannitol. The acquisition by Aptar provided A$7.2 million in total to Pharmaxis. Other revenue for the year ended 30 June 2022 included a distributor appointment fee of A$2 million in relation to the Australian distribution rights sold to BTC health Limited and a $340,000 option fee received from Aptar in relation to the Orbital device
Presuming that on closure they were expecting the remaining ~5.1m. So we now need to presume that the $2.5m that they exercised immediately has not been paid. Note that this is USD$ not AUD$ so the total of USD 5m traslates to (A7.2m @ .69AUD exchange rate)
What is the relationship with Aptar Pharma and Arna Pharma ?
Wonder if there will be a Please explain from ASX ? (regarding the "immediately exerciseds it subsequent right to........ for US2.5m)
SNT Price at posting:
3.3¢ Sentiment: Hold Disclosure: Held
