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.
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.
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.
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