Quarterly Trends, page-8

Some updated charts that supplement those already posted today on a different thread, displaying a breakdown of Cellmid’s quarterly revenues and cash flows over the last six years.

First: Cash Inflows from Operating Activities.


These are broken down into receipts from the consumer health business, from the midkine business, and other general receipts. The major component of the latter is the significant annual support for business operations from the Australian Government via its R&D tax incentive scheme. Some other recently announced research grants should begin to appear in coming 4C reports.

Regular contributions from the midkine business are royalties or exclusivity fees from Pacific Edge and Zoetis, and cash from MK-ELISA and antibody sales. The larger ‘one-off’ receipts in the first half of FY2014 were licence fees received from Fujikura and Pacific Edge.

The underlying expansion of receipts from the Advangen business shows trend growth compounding at 18% per quarter, which equates to a compound growth rate of 94% per annum over the six-year period.

Second: Operating Cash Outflows.


Staff costs appear to have stabilised over the last four quarters, while the other three expenses that feed growth show slow expansion. Similar to Trae’s analysis, total outflows appear to follow a linear upward course. A regression fit trendline indicates this to be increasing on average at $85K per quarter.

If the trendlines in total cash outflow and cash inflow from Advangen sales alone were to continue as described they would cross around the end of this calendar year. Cash received from other sources would be a bonus.

Third: Quarterly Sales Revenue.


As would be expected sales revenue is showing a compound rate of growth similar to cash receipts. The just reported figure of $1.51M displayed for the March quarter is conservative in that it derives from the Advangen business division alone and does not include any proceeds from midkine product sales.

In all, a picture of a small diversified biotech with a developing history of solid underlying high revenue growth.