Healthcare

Arovella’s quarterly cash burn to decrease as 2018 stoush with Berlin Pharma ends

Fri 29 Jul 22, 11:15am (AEST)
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Key Points

  • Arovella investors will see better cash positions at the end of each quarter from Arovella as it winds up a long-ranging legal process
  • Since 2018, Arovella has been paying back HC Berlin Pharma by order of the German Courts relating to a 2008 dispute
  • That settlement process is now over with $2.3m in payments over four years sent to HC Berlin

Arovella Therapeutics (ASX:ALA) is set to keep more of its own cash each quarter hereafter as the company winds up its expensive legacy legal stoush with HC Berlin Pharma. 

In 2018, a German court ordered Arovella, called SUDA at the time, to pay damages of $2.3m (EUR 1.9m) associated with a bungled financial agreement dating back to 2008. 

For the last three and a half years, Arovella has largely been using its R&D Tax Refunds to pay off the settlement in instalments. 

With that process now behind it, management expects to see better cash positions at Arovella hereafter. 

Oz manufacturing agreement ongoing 

Back in April, the company announced it had executed a first stage manufacturing agreement for its blood cancer treatment product CAR19-iNKT, also called ALA-101 (after the company’s ticker.)

At the time, Arovella noted it expected a final master manufacturing agreement to be concluded by late July.  So far, the market hasn’t seen it. 

Under the agreement, ALA-101 will be produced by Brisbane-based QIMR’s manufacturing arm, Q-Gen Cell Therapeutics. 

Q-Gen is accredited by the Australian Therapeutic Goods Administration (TGA), the Australian counterpart to the US FDA, and owns a facility permitted to send its products around Australia, and overseas to parts of Asia, the US, and Europe. 

Arovella cites an ongoing “technology transfer process” in updating investors on the progress of the agreement, not yet finalised in the master form, but expected in the immediate future. 

New US patent granted 

Arovella investors likely have their eye on the company’s most recently won US patent in the June quarter, which sees it trademarking the use of anagrelide for cancer. 

Anagrelide is a medicine that stops the body from overproducing blood platelets; Arovella cites research showing the drug can stop the spread of cancer cells through the body. 

The company is typically focused on blood cancers, but says many solid tumour cancer patients may see better health outcomes when using anagrelide, which itself is typically used to treat blood conditions. 

Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Arovella was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.

 

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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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